Select an insurance company

If you are purchasing your own insurance, research the credibility and reliability of several companies before making a choice. Use the National Association of Insurance Commissioners’ website Links to an external site. to check for licensed insurance providers in your state. Look for complaints and whether claims are settled promptly.

Next, consider whether you want an agent or a broker.

• An agent works between you and the insurance company. Some agents will work for one company; others work independently for several companies.
• A broker is required to have a license and will offer a range of products from various companies.

Ask family and friends for recommendations of potential agents or brokers. Then ask the candidates:

• Which companies’ products can the agent or broker offer?
• How long has the broker or agent been in the insurance business?
• Can the agent or broker provide references from other clients?
• What discounts apply?
• How is the agent or broker paid?

Make sure the agent or broker is committed to your needs. You want to work with someone who understands your goals and will not try to sell you something you do not need. Ask for clarification of terms, conditions and principles in the policies so you can compare coverages and costs from several companies.

 

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