How to choose an insurance company? It is possible that an insurer does not involve a payment of a lot of money, but when we take out insurance we are establishing a contract that can last over time, so it is important to know how to choose an insurance company.
When we do not know a product, it seems that the most important thing is the price and we are willing to buy the cheapest since we do not pay much attention to the company that sells that product to us. In the case of insurance that behavior can be a mistake and know how to choose which company we hire is as important as choosing the type of insurance policy we hire.
How to Choose an Insurance Company?
The first premise that we must take into account to choose the company, is very simple and only supposes to think…
Do I know the company? Does it sound?
If it sounds to me it is that it is a company that has been in the sector for years and that is important!
Among the most well-known companies are multinationals such as Allianz, Zurich, Axa, Generali, etc. or Spanish companies such as Vida Caixa, MAPFRE, Mutua Madrilena or CASER.
The second premise would be to make sure that the company we hire is safe – never better! – also, taking into account that insurance is a financial product, that means that the company is stable with a large financial muscle …
How can I know your financial solvency?
In principle, all companies are audited in rating indices granted by rating agencies such as Fitch or Standard and Poors; So for us to consider it, the company should be accredited with an A, AA or AAA, at best. Again, the best-known companies receive the highest ratings.
The third premise is based on the experience of our family or friends so …
Why not ask my acquaintances?
It is not only that the company in question can respond financially, but that the service is the best possible, fast and that the solution of possible losses does not involve any inconvenience in our day to day, and that can confirm us, people of our confidence who have insurances contracted with these companies and who will surely help us to decide,.
For the fourth premise, it would be a good idea to address the mediators that these companies may have in order to name and face the services we are going to hire.
What will the mediators give us?
One difference that we find among low-cost companies and others that are more established is that the latter have a network of mediators, agents, brokers, etc. that offer a closer service and are able to respond in a faster and more direct way. our needs.
Knowing the agents of the different companies and seeing which one gives us the most confidence is also a way of deciding which company interests us the most.
A fifth and last premise to choose and that can be decisive to make sure with a company of the best known is to look at the products they offer, comparing them well with those of low-cost companies avoid falling into the trap of prices.
What payment with each company?
This involves reviewing what each policy offers and at what price; It is usual that cheaper policies have fewer benefits so if we are interested in having what services it is more profitable to pay something more in exchange for all those services are included in our policy and are not added as they are usually in low-cost policies .
As in so many things, dedicating some time and following the advice of a professional, we will be able to choose an insurance contract that will adapt better to our needs and our pockets.
10 Tips to Choose an Insurance Company
The offer of policies in the market is very large, so HiR Seguros recommends following some steps before choosing a tool that fits our needs.
1. Familiarize yourself with the vocabulary. It is important to know some terms that will help you make a good decision.
– Coverage: is the specific risk for which the insurance will protect you.
– Policy: it is the document that contains the general rules of your insurance.
– Sum insured: refers to the maximum amount that the company will pay you if the covered accident occurs.
– Premium: refers to the cost of insurance.
2. What do you want to insure? There are unemployment insurance, medical expenses, cars, real estate or personal insurance. Prioritize your needs and be prospective, analyze what things or who are vulnerable.
3. Economic dependents. Consider if you have young children or if you are studying, you are single or retired; how much income besides yours will commit.
4. What coverage do you have? Coverage is usually due to death, third party damages or disability; however, you can opt for terminal or serious illnesses or funeral expenses. It is suggested that the coverage goes from five to eight times the current income.
5. Define your budget. Think about how much you earn and how much you could spend on insurance payment.
6. Review options. The insurer can be a bank or perhaps a specialized company, consider the trajectory, presence in the city and country, prices and what its strength in the sector. The insurer must have physical offices and permanent care websites, in addition to alternative means of communication.
7. Seek advice. There are insurance agents and insurance brokers. The first ones are people who guide you about existing insurance and make you a plan tailored. Meanwhile, the broker is intermediaries of several companies, which are engaged in marketing contracts and insurance policies to their customers.
8. Compare. Many times the decision for an insurance is only motivated by the price, however, the idea is to make an assessment of the advantages and disadvantages of each option.
9. Organize your income. Look for payment plans that do not compromise other necessary expenses in your family.
10. Beneficiaries. Clarify the name and percentage that will be granted, remember that they can not be minors. Avoid intermediaries, if you designate someone else to deliver the sum insured this action is only a moral obligation.