Tips to choose the right insurance company

It could be a real challenge to choose the best insurance company because of the existence of insurance companies in sheer numbers. So what will you look at before selecting the right company?


Check whether the company you have chosen has been licensed to operate in your state. It comes handy when you have any problem with your firm since the state insurance department will come to your rescue and redress the problem provided the company is authorized by the state. To know more about the authorized companies, please contact your state insurance department.

Customer care

The parameter that differentiates the good and bad insurance company is the customer care and it is the duty of the company and its representatives to clarify your doubts if any, and process your claims fairly quickly, diligently and efficiently. You are at liberty to check and verify the national claims database and analyze yourself the track record of the firm and its ability to handle consumer complaints.

Financial stability

The aim of insuring is to get a peace of mind and hence select a company that is financially sound and likely to remain so in the years to come. Beware of fly-by-night operators who have no strong financial base but announce attractive offers and discounts and stay away from them. There are independent rating agencies that rank insurance companies depending on their financial soundness.


The availability of vast number of insurance providers gives you an option to shop around since the prices offered by them vary and it is your duty to look for the cheapest one. It is a better practice to get quotes from at least three firms apart from nearby agents. The internet gets you the most important information about the cheapest quotes without moving away from your cushion chair. Contact your state insurance department which provides a guide and gives the details of charges imposed by different insurance companies for different policies. But price alone is not the single most important factor but others like customer care and efficient handling of claims too matter.


The insurance policy that you have just bought should provide you comfort and not plunge you into a nightmare irrespective of the source of purchase, be it through agent, over phone, internet or directly from the company. Whenever you have any doubt about the product or should you need to file a claim, your insurance company should be ready to help.