Accidents, break-in's, natural disasters; if you happen to be affected by any of these situations, it could cripple you financially, if not emotionally. It is indeed better to be prepared for such eventualities and the best way of doing that is to ensure you have adequate insurance.
Insurance companies sell protection policies to business entities and individuals to protect them against possible misfortunes. The types of insurance policies they sell differ from company to company, and these include short term insurance, long term insurance, life insurance, house hold and car insurance, just to name a few. Regardless of the different types of insurance options, most insurance companies work on the same principles. A client pays a monthly or yearly premium which is invested by the insurance company in highly secure investments such as government bonds.
In return the Insurance Company underwrites specific policies for their clients, stating to pay a certain amount should the eventualities they are covered for befall them. To give a very basic example, a company that specializes in car insurance will underwrite a policy stating they cover cars destroyed in an accident or stolen vehicles. Should a client's car be destroyed in an accident, the company will pay a certain amount to cover the loss that the client suffered, fully or partially depending on the client's insurance policy agreements.
How do you go about finding a reputable company best suited to your needs and your budget? There are many different ways, as insurance can either be bought directly, or through an agent/broker. Some of the best ways of choosing a reputable company and obtaining quotes are to use insurance brokers to help you get the best possible deals with regards to the type of insurance you need. You could also ask around. Experienced family members, friends or even business acquaintances would be more than willing to share what they know.
They will be honest about their experiences with regards a specific insurance company, without trying to "pitch" to you just to close a deal. Alternatively you could search online or even in the yellow pages or similar directories. By visiting the company's website, you can browse through information such as their terms and agreements, the benefits of the policies they offer, or even the "Consumer complaints ratios," That will give you an idea of how many complaints are received per thousand claims filed.
Once you have a list of all the companies that interests you and their respective quotes, organize the list from lowest premium to higher premiums. Next to each company and quote, make a note of their complaints ratio. It is also advised to get in touch with people in the know and ask if they have any recommendations. For example, you if you're looking to purchase car insurance, you could contact a body shop, car dealer or even a mechanic and ask which insurance company they would recommend. The company with the lowest premium quote as well as the lowest complaint ratio would most likely be