Top Insurance Companies And What They Have To Offer

Monday, November 27, 2017

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What Umbrella Of Protection Do You Need?

 

There is heavy competition in the insurance world.

Whether it’s health insurance they are selling or a bundle of home and life, every company has something different to offer.

We all want the same thing: cheap insurance.

But at what cost?

What price are you willing to pay for the very best insurance?

The concept of insurance has been around for hundreds of years.

It is a way to add protection to one’s life. Insurance leads the way in the business market.

And now, with every new law passed that requires insurance, the insurance companies prosper.

Is this a good thing?

How does one know if they are getting the best deal?

Maybe getting the best deal isn’t as important to you as customer satisfaction.

We all have a different plan for our life, and no two companies are the same.

Here is some insight on the insurance companies that are out there and what they have to offer you!

 

Let’s Talk Insurance

 

First, let us break down what insurance is and what types are out there.

 

Insurance is:

noun
  1. a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
    2. a thing providing protection against a possible eventuality.

 

But insurance is also more…

 

It is a way for you to choose how much security you want for you and your family and at what price.

Insurance nowadays is so competitive, that the challenge is how to keep customers happy and paying year after year.

Because of this, companies offer large discounts for all sorts of things.

They also reward loyal customers. Insurance companies spend millions every year on advertising.

Remember the Gecko from Geico? Who could forget.

Insurance is the standard for every household and is the second check we write each month, right after the mortgage.

It is a way to feel safe in a very unsafe world.

Insurance can be offered for practically everything.

From your home to your dog and year even that expensive purse!

It is always better to be insured than uninsured in this country.

Types Of Insurance

 

We should try and stay on target.

The types of insurance that we want to discuss are the big five: home, life, car, motorcycle and health.

These are the kinds that are most often written and that most people want.

Supply and demand right?

Homeowners insurance:

  • When you purchase a home, home lenders require you to have a minimum amount of coverage in order to protect what they are financing.
  • Homeowners insurance is in place in case a disaster such as a fire occurs and your home is destroyed. You will need it insured to pay off the loan on the home and recover damages.
  • Homeowners insurance covers four basic types of insurance: structure, personal belongings, liability, and additional living expenses.
  • You have a few different types of coverage: a cash value coverage, a replacement cost coverage and a guaranteed or exceeded cost coverage.

Car Insurance:

  • Property Damage Liability coverage will cover you if you destroy another persons property
  • Collision coverage will cover your own car in case of an accident
  • Comprehensive coverage will take care of theft and other types of accidents not incurred in an accident
  • Towing will cover or reimburse you for a tow and other roadside emergencies
  • Uninsured Motorist coverage will make sure that you are still covered for damages even if the other party lacks the proper coverage

Motorcycle Insurance:

  • Motorcycle insurance has the same limits as car insurance in most states. You can also insure your gear and parts on your bike.
  • Some motorcycles can not be insured depending on their modifications.
  • Most of the time scooters and dirt bikes are included in the motorcycle insurance category.

Life Insurance:

  • Life insurance is a type of insurance which protects family and loved ones after the insurer is no longer living.
  • A beneficiary must be put in place to receive the pay out after death.
  • In most cases, people pay for a term policy which estimates at ten times their gross annual salary.
  • There are two types of life insurance: whole life and term.

Health Insurance:

  • Health insurance is usually in it’s own category because it is the most complicated to insure.
  • Everyone in the United States must have health insurance.
  • You can choose an HMO or PPO, but the policy prices may differ greatly.
  • Most companies and small business offer health insurance to their employees as a benefit.
  • Health insurance is a way to protect ones health in a preventative and diagnostic way.

 

Companies And What They Have To Offer

 

I will go over a handful of the top cheap insurance companies in the United States.

Based on reviews and the amount of customers they sell to, these agencies are well-known and well-established.

You may be surprised at what you find from each of these separate institutions.

 

State Farm

  • The largest and one of the oldest insurance companies, State Farm is a very well known insurance agency.
  • They offer a wide variety of insurances to people all over the country.
  • State Farm has been the largest insurance company since 1942.
  • They have almost 17 thousand agents available to help you.
  • They handle over 70 million insurance policies from home, auto, life and health.
  • State Farm started as a small company in the 1920’s and has flourished ever since.
  • State Farm is not known for it’s customer service so some say that it is not worth the money.

 

Geico

  • Geico is a large provider of insurance in the United States and is known for their marketing and branding.
  • They offer large discounts for their customers.
  • They offer lower prices than any other insurance company.
  • Geico has a good customer service reputation but it is mostly online correspondence.
  • Customer satisfaction with claims however is not as good.
  • Most people choose Geico because it is easy and simple to get a quote and policy online without having to meet with an agent.
  • Geico is the second largest insurance company in the United States. They cover more than 25 million people with insurance.

 

AllState

  • All state is a huge insurance agency which uses a different business style than any other. Allstate contracts out to personal agents who then use the company name as a small business which to sell insurance.
  • Allstate also has a very low number of customer complaints. Customer satisfaction for claims is satisfactory but not great.
  • You may pay more for this insurance company versus Geico.
  • They give rebates for their customers that have good driving records.
  • There is a more personal feel to their business style with a sit-down agent style of doing business.

 

Progressive

  • Progressive is known for their cheap insurance policies including boat, RV and commercial vehicle insurance.
  • This comapany has also expanded into the international sector and has grown a lot over the last few years.
  • It was founded in 1937 but has taken longer to expand than State Farm.
  • They have over 13 million insurance policies and employ over 30 thousand insurance agents.
  • Known for great customer service, they have a very convenient way of buying insurance.
  • They offer mileage programs that only charge you based on the amount you drive your car.

What Kind Of Insurance Do These Companies Offer?

 

These larger, more successful insurance agencies basically cover the gamut.

From car insurance to storm coverage for your home, these top four companies will surely have something you need.

Here is a breakdown of how you might begin to search for the right insurance for you.

Most companies offer a price match.

This means that if you are quoted a cheaper price somewhere else, they will most likely match you.

A great way to start looking for insurance is to talk to a broker. A broker is there to work for you, the consumer.

They are not employed by the insurance company. However, some get money from insurance companies for providing them a quota of clients.

This is just how the world works.

Don’t get discouraged because there are many ways to find great deals, even with the top four companies.

 

Know what you are looking for…

 

  • Know what kind of coverage you will need. Do you only need the minimum amount that your state requires? If you own an older car that you no longer have payments on, this may be the case.
  • Know what documents you may need. It is always a good idea to have a copy of your drivers license and your driving record.
  • Gather quotes and check references. As mentioned above, many companies offer a price match. You can also try to bundle your insurance with one company. They will reward you by giving you a discount.
  • Always review your policy. Make sure it has all of the insurance you want. Read through your documents and make notes of anything you may not understand or need changed.

 

Know if you need the maximum amount of insurance or if you can settle for the minimum.

For example, with car insurance you may only need to have liability coverage.

If your car is paid in full, you do not need the maximum coverage.

$30,000 in liability and $5,000 in property damage will be enough.

If you do choose to get more, here is what else is out there:

 

  • Property Damage Liability coverage will cover you if you destroy another persons property
  • Collision coverage will cover your own car in case of an accident
  • Comprehensive coverage will take care of theft and other types of accidents not incurred in an accident
  • Towing will cover or reimburse you for a tow and other roadside emergencies
  • Uninsured Motorist coverage will make sure that you are still covered for damages even if the other party lacks the proper coverage

When you own a home…

 

  • When you purchase a home, home lenders require you to have a minimum amount of coverage in order to protect what they are financing. State Farm has a great homeowners insurance policy. Mercury Insurance also has homeowners insurance policies for a great price! Compare the price and what is offered through an agent. They can fill you in on the “fine print”.
  • Even if you don’t own a home, you may rent. In this case renters insurance is just as important as homeowners. You can obtain a policy for as little as $20 a month through Progressive Insurance.
  • Storm coverage is an added insurance which you can obtain. If your house is in a fire or flood zone, you will want the extra protection. Most insurance companies that provide homeowners insurance also have these additions. All State has a great add-on policy which your independent agent can help you with.
  • Neglect of the home is a red flag for insurance companies. If your home is in bad shape or something is damaged because of negligence, they may not pay out. Remember that insurance companies are not required to insure you. They base their estimations off of statistics and evaluations. They are a business and will usually not give insurance to someone who they think is neglectful.

Live The Healthy Way

Health insurance is a more convoluted type of insurance.

Most companies do provide this but there are a lot of details to consider.

The best health insurance provider is Blue Cross/Blue Shield or Kaiser Permanente.

Now, there are health insurance plans that you can bundle with other plans, but this is not common.

  • Health insurance is an insurance that pays for all or some of a persons healthcare bills. These plans range from group health plans, individual health plans, worker’s compensation, and government health plans.
  • Healthcare costs include: doctors visits, hospital stays, surgery, procedures, home care and other treatments.
  • To qualify for government healthcare, one must meet a financial criteria.
  • All State provides limited coverage of health insurance.
  • You can purchase health coverage through State Farm from individual plans to supplemental. If you want the best deal for health insurance and the highest quality of care, going with an outside health insurance agency is best. Humana and Aetna are other providers of health coverage to U.S. citizens.

How Does Health Insurance Work?

 

  • Health insurance companies such as Blue Cross and Kaiser Permanente, basically take a gamble on their patients. They take the information you give them about your age, medical records and where you live, and come up with a policy. This policy covers what you need at a rate that they can make money on.
  • Just like other types of insurance, you pay a premium every month and you also choose your deductible. You can choose which plan works for you and your family, but it may come at a cost. The healthcare industry is very large and very powerful.

 

Why is insurance so complicated?

 

Well, the truth is that it doesn’t have to be.

To break it down, you pay for what you get.

If you want the maximum amount of coverage, you will pay for it.

Do you want the best customer satisfaction?  You will pay for it.

Between car, home, life and health, you have a lot of money going into insurance.

Make sure you sit down with a broker and work things out.

You will want someone on your side.

 

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