How do you choose the best insurance company?

A man shrugging his shoulders.

I would be willing to bet you selected your insurance company because a family member or friend recommended them or an agent sold you the policy.

Let’s face it. Insurance is a bit dreary, yet totally necessary. The idea of researching and buying insurance induces procrastination (e.g. replacing salt in water filters, changing batteries in fire detectors, repainting anything — anything else sounds way more exhilarating!)

Here’s the thing. It’s challenging to know if what you’re buying for insurance is actually good. You can take the word of someone you trust but then how do THEY know? Insurance companies must manage and serve a wide variety of relationships. Having a limited sense of your options, based on a few “recommendations” from people with industry experience won’t necessarily get you the best coverage and the best insurance company.

The truth is, most people don’t know — and don’t care too much — about the coverage they end up selecting and paying for.

Review your insurance policy

Were you presented with choice the last time you signed up for insurance? In a recent analysis of 500 policyholders surveyed by Clearsurance, nearly 50% of policyholders who bought insurance from an agent shared that they were presented with only ONE insurance option. Let me repeat that.

Only ONE insurance company was recommended by their insurance agent.

Do you see a problem here? Most consumers like SOME choice when selecting a product or service. We get a second quote if we have repairs for our homes so why wouldn’t we want a second option for protecting against a loss?

What’s equally troubling is that price was the primary reason policyholders were recommended their insurance company by their agent. Premium rates vary greatly based on many factors and while there are many tools to get “quotes” about an insurance company, it’s very difficult to understand the details about how well claims are handled and even paid.

What could be of more interest to insurance consumers than finding out how their insurance choice compares to the marketplace without any biased input from family, friends, agents or the dozens of commercials and insurance mascots?

It is no surprise that many policyholders we hear from are deeply interested in tracking the service history and customer stories about their insurance companies. If consumers don’t have reasonable access to the reputation and service provided by insurance companies, then they are unable to buy meaningful coverage.

Have you searched your insurance company on Clearsurance yet? Maybe it’s time you start.


The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.

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