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How to Choose an Insurance Company

How to Choose an Insurance Company

How to Choose an Insurance Company

You're asking yourself how to choose an insurance company.  Finding an insurance company that fits your budget and your values can be difficult.  How do you know the right one to choose and how do you know what they’ll be offering you in exchange for your loyalty? Have you had a bad experience in the past which has led you to feel distrusting of insurance companies?

Most insurance carriers are actually very trustworthy and consistent.  The reason for that is that the Department of Insurance is a regulatory institution that maintains consistency in the world of insurance.   Whether it’s auto, home, or motorcycle coverage, finding an insurance you trust is key.  Read the rest of the article to delve deaper into how to choose an insurance company.

What You’re Paying the Insurance Company For

Direct Insurance Network works with a number of insurers to provide excellent service and coverages to thousands of clients.  We find our customers are most satisfied when they understand exactly what they’re paying for.  Because you don’t see a regular product physically from your insurance carrier, it can be easy to forget what exactly you are paying for.  When you pay your monthly premium, you are generally paying for 30-45 days of insurance.  Insurance is simply put, a promise to pay in the event of an accident or claim on your behalf.  This means that you want an insurance carrier that is reputable and reliable. 

How to choose an insurance company is a common question we get asked.  When choosing an Insurance Company, it’s in your best interest to avoid companies who are not established.  While they may offer a good deal, will they be there in a time of need? The worst thing to happen would be for them to have an insufficient amount of funds set aside to pay you in the even that you had an accident or claim.  While this is uncommon, it is important that you do some research or speak with an agent at Direct Insurance Network while considering your insurance carrier options. 

While you’re likely pinching pennies when it comes to insurance, it’s important to note that sometimes you get what you pay for.  Do you have a coverage that extends to others around you? If you lend your car to a neighbor or friend, will they be covered in the same way? Have you been asked to exclude individuals off of your policy or been told to sign documents to opt out of coverages? The key here is to ensure that while you may be promised a lower rate, that the sacrifice in terms of coverage may not be worth the risk.  There are many resources on how to choose an insurance company but sometimes it can be intimidating if you're not informed.  Insurance is intended to provide coverage to you for your payment, if you’re working with a company that is asking you to cut corners to manipulate your policy, you’re likely working with the wrong one. 

Cost & Payment Options

When considering insurance companies, knowing that price is important, also consider the payment plan options available.  While one carrier may be less expensive than the other, you may not be able to break up your payments as conveniently with the cheaper one.  This could land you potentially paying more in finance charges for setting up a payment plan.  Because Direct Insurance Network is familiar with the operating styles of our insurance partners and can help educate you on how to choose an insurance company, we can easily identify the best course of action for finding you the plan that works best for your lifestyle and pay schedule.

Policy Terms

Insurance policies generally run on an annual basis.  The reason for this is so that they can re-evaluate the rate and ensure that the price is right for the policy portfolio that you have.  In some cases, insurance companies write 6-month policy terms.  While there’s certainly benefits to having a locked in rate for an annual policy, a 6-month policy also comes with benefits.  Direct Insurance Network knows that choosing the right Insurance Company is difficult so we can review the options to make it easier for you.  That is why we put together this how to choose an insurance company article to share with you.  A 6-month auto policy for example, may be more preferred if you’ve had an accident or ticket that should be falling off your driving record in that window.  Rather than having to wait for your annual renewal period, you can have your policy re-evaluated half way through your year in order to see if you qualify for a better rate.  This idea works both ways however.  If you’ve recently had a ticket or accident that is not yet impacting your policy, you have a much shorter period with the 6-month policy until it effects the rate.

The Right Choice For You

Be confused no more, how to choose an insurance company can be easy for you.  Choosing the right insurance company with Direct Insurance Network is easier because we partner with providers that have excellent track records for reliability and claim handling.  It’s important to note that working with quality insurers will likely change your view of the insurance world.  Having an advocate that sees your side and your concerns will make changes in the way that you feel about insurance.  Finding the right insurance company is an important decision in your life, make it the right one with Direct Insurance Network today.