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How to choose the best insurance company. All you need to know

August 31, 2020
insurance company

If I would said that it is possible to choose the best insurance company in record time, would you believe it?

Neither do I!

However, I would like to address the subject in this post, so I am going to find out what questions I ask myself and I answer when I look for the best insurance company.

Insurers have come to a boil, selling their products as the best on the market or with mind-blowing discounts. And wait, we have entered the last quarter of the year, from now on, I am sure that they will redouble their efforts to see who gives more for less.

How to choose the best insurance company

These are just some of the slogans that insurers bombard on television, in the press or on the Internet.

Contract now, up to 40% discount.

Come with any of your insurance, we will lower the price whatever it is.

6 Months free on your car insurance.

Your health insurance at a price never seen before.

Wow, if I contract with this, it assures me that I will pay less than now. But the other one, gives me a 40% discount so the price may be lower. Look, if they give me six months free they are discounting me 50%, even more than the previous one. This health insurance has to be very cheap so they can claim that they have never seen anything like it.

Uff! What a mess.

The decision in the face of such a similar offer is difficult, especially since we usually pay more attention to the advertisement than to the fine print . Yes, the one that appears at the bottom of the television screen and that you almost never finish reading when you start reading.

To help you with this mess, I recommend that you do not abandon reading the article now.

Is it the best price for the coverage you offer on the insurance company?

If you review the above slogans you will come to the conclusion that they are all based on the price of insurance . Insurers know that the insurance consumer is what takes into account first, leaving coverage in the background.

Price is undoubtedly a decisive factor when purchasing insurance, but it should not be unique. The same insurer can offer different products within the same type of insurance. The differences between one and the other will cause the price to vary, but it is possible that by choosing the cheapest insurance you will stop taking out essential coverage in your case.

For example, you use the car to travel frequently on secondary roads, which means that you run the risk of having an incident with a roe deer or wild boar, if you do not have insurance for collision damage with hunting animals , you have 99.9 % chance that you will have to pay for the repair in the event of an accident.

Currently comparing the coverage before hiring the insurance will be easier for you with the information note that insurers have begun to include in their insurance proposals.

insurance company

The commercial discount, a short-haul incentive of a insurance company.

The commercial discount is an argument to attract the consumer , especially when buying online. This practice, promoted by insurers who sell online, is increasingly being found in personal sales.

3 or 6 months free, 100 euros discount, 30 euros in gasoline checks. These are some of the promotions that you can find right now when subscribing your insurance.

If you are one of those who cares about checking the insurance and the price every year, this type of offer may be perfect for you . Because that’s what it is about, a commercial discount valid only for the first year, after which you will have to pay the corresponding premium without reduction .

If I buy insurance through an insurance agent or broker, do I guarantee the best choice?

I’m going to be honest with you, the answer is no. But…

Both the agent and the insurance broker go on commission. For every policy they sell to the company, it pays them a percentage of what it charges you for the insurance . The same happens if you contract the insurance through your bank or you do it online through an insurance comparator.

Doing it through one or the other has its differences. While the agent or bank can only offer you the products of a single company, the broker or the insurance comparator (behind there is always a broker), they will be able to analyze the entire market and offer you the best. But is the best for you or for them?

Objectivity is often set aside when incentivized to sell the more the better.

However, using a mediator can be a good choice to hire your insurance. If you do it with an agent or the bank, you may not have a good company or good insurance , but you will save time in choosing.

If your option is the insurance broker, the chances of contracting the policy that best suits what you need are many, as is having the best insurance company. Either way, you will have the last word when choosing between the three offers that you must present.

But you are one of those who do not like to have intermediaries and prefer to contract directly with the insurer, because in that case, you can do it in person, by phone or online.

But something does not add up to me, because if you have it so clear you would not be reading this post.

Is it easy to access after-sales and Customer Service services?

I am one of those who thinks that the best thing that can happen is never having to use insurance . What happens is that unfortunately sooner or later you will have to use it, so you should make sure that it is easy to access the services and benefits of the insurer.

In the event of an accident, it is essential to be able to establish quick contact with the insurer. Among other things, so that you provide the contracted service as soon as possible , assess the damages and compensate without delay, or give you the freedom to choose a trusted professional.

But also, during the term of the insurance contract, you may have to resort to the insurer on more than one occasion. For example: to update information on risk, increase or reduce the insured capital, negotiate new premiums or claim a solution to the latest claim.

Sometimes the answer or the resolution is delayed, you consider the decision they made incorrect and you want to complain. Knowing where and how to do it is crucial, so it has to be easy to access Customer Service. There is an obligation for this information to appear in the policy , but checking it before hiring it may improve positions to be the best insurance company.

Accessing these services should be easy and their assessment should be independent even if you have contracted the insurance through a mediator.

insurance

Is the solvency grade adequate to be the best insurance company?

Each consumer may have a different idea of ​​what is the credit rating that the best insurance company must have in order to deserve their trust. It is true that, as with banking, insurers are subject to periodic controls by the economic supervisor, the DGSFP, to verify that the requirements of Solvency II are met. It is a calculation system, common to all European insurers, by which the economic capacity to face the negative events that may occur is measured .

According to the Unespa employer, the insurers that operate in our market have about 2.5 times the resources necessary to cover the losses due to these events.

So based on this, solvency does not seem to be a problem, however a little snooping in your candidates’ finances can provide relevant information.

Above all, because contrary to what happens when you buy a loaf of bread, which you can sink your teeth into at that moment, in insurance, you buy expectations that the contract will be fulfilled when the insured risk occurs . You pay in advance and you don’t know if when the time comes, the insurer will continue to have that money.

What opinion do your family and friends have about the insurer?

Word of mouth has always been one of the best ways to attract customers. And to lose them!

There are still more than a hundred insurers on the market selling their products, but more than 50% of the market is concentrated between five insurance groups . If we take these data into account, it seems that there are many policyholders who do well in the same company.

And how is your reputation on social media?

Nowadays word of mouth has been replaced by social media and insurers know it. Their presence is increasingly evident, as evidenced by the 2.6 million interactions on their own profiles. The network where insurance has the greatest presence is Facebook with 84% of interactions, behind Twitter with 11% and Instagram with 5%.

This presence on the networks is used by users to interact with insurers in such a way that those that pay more attention and less response time obtain better customer service . For you, who are not yet, it is a source of data on what they think of the company in question.

insurance companies

Ending up.

We are in the information age and there is so much out there that it can be overwhelming, especially if you are new to the subject. However, sometimes it is necessary not to succumb and spend a little time selecting the product or service that you are going to purchase. Insurance is no different, and choosing the most suitable one together with the best insurer is a job that must be done beforehand.

As in any other investment, hiring an insurance policy requires a detailed analysis of the offer, the conditions it includes and the insurer that makes it. And that’s where the answers to these questions come in to determine if you are dealing with the best insurance company.

  • I would be wary of an insurer that offers the greatest coverage at the lowest price. It could be a strategy to save your ass.
  • Contracting insurance with a company through an agent or broker does not guarantee that it is the best … but the possibilities of doing it well increase, and even more knowing that the choice will continue to be in your hands.
  • Access to Customer Service or after-sales services must be done easily and is an essential requirement in the best insurance company. The obstacles or delays to communicate with her usually have a cost. Can you imagine who pays for it, right?
  • Financial solvency and social reputation are two other factors that should be borne in mind when choosing.

Feel free to explore other factors in choosing the best insurance company.

What strategy do you use to contract your insurance?

Leave your answer in the comments, we are happy to read you.

Frequently Asked Questions

Yes, in all countries that I know, it’s mandatory to use some insurances, but not all insurances are mandatory to use. So, the answer is yes.

This is an opinion, so it’s up to you to decide what you think and want. Some people think that they are a scam, other people don’t.

It depends on your needs, if you don’t want a lot of insurances and don’t want quality, because you don’t like insurances, you can get it for a low price, but it depends on many factors.

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