How to Research Insurance Options
The Internet is a great way to compare rates, but it's wise to also call local brokers and to check with friends, coworkers, and relatives. Rather than jumping at the lowest price, you'll want to make sure you're dealing with a reputable firm that will be there when you need them. However, be aware that vast differences in price for equal coverage are common, and the best way to get the optimum price is to shop around.
Explore policy and cost options on the Internet (Insure.com or Accuquote.com); or call Termquote (800-444-8376) or Quotesmith (800 556-9393) for multiple comparisons; or find a local independent broker who isn't locked into one company.
Fact
Even the cost of basic insurance can vary widely. Consumer surveys have found insurers who will inflate their insurance policy rates at a price 400 percent higher than their competitors. You can save a lot of dough just by shopping around and knowing what's within reason.
After you've researched your options, make sure you are buying from a reputable company by assessing the following:
Are they financially sound?
Are their prices competitive?
Do they have a good customer service record?
Do they pay benefits promptly?
Weiss Ratings, Inc., provides reliable insurance company ratings for around $15 for an individual company and a comprehensive analysis for around $50. You can also log onto Insure.com to see if Standard & Poor's has given a particular insurer an AA or above. You can also go to A.M. Best to see if the insurer has earned an A- or higher.
To check for consumer complaints, the National Association of Insurance Commissioners will link you to your state's insurance department. Once you have selected the company, read the policy thoroughly before purchasing.
