Nowadays, there are a lot of insurance providers to choose from. Selecting the right company can be overwhelming. But no matter what type of policy you are buying, there are five things you should consider before choosing an insurance company.


There are several different organizations that rate insurance companies. Three to take notice of include J.D. Power and Associates, A.M. Best, and Standard and Poor’s. J.D. Power and Associates collect consumer data and rate insurance companies based on coverage options, price, claims handling, customer services, and overall experience. A.M. Best, and Standard and Poor’s rate financial stability and measure insurance companies’ ability to pay out a claim.


When it comes to service, everyone needs one thing: reliability. You need to know that your provider will be there for you and that any claim you make will be handled smoothly. You can get service recommendations from your friends and family. Local auto body and repair shops may also be able to tell you which companies are easy to work with and which companies should be avoided. The type of service you get when you call for an initial insurance quote is another good way to get an indication of the customer service you can expect from a particular company or agent.


Some insurance companies sell a range of policies, while others specialize in a specific type of insurance, such as flood insurance or classic car insurance. Buying from a specialty company may help you find quality coverage at a good price. Specialty companies may also be able to provide better claim service in certain instances. At the same time, you may be better off buying all of your insurance from the same company so that you can qualify for a multi-policy discount. The best thing you can do is evaluate all of your various options before purchasing a policy.


Not every insurance company offers the same discounts. Some offer significant savings on auto, home, health, and life insurance, while others provide only one or two discount options. When calling for an insurance quote, you should ask about the different discounts you may be eligible for. It may also pay to call your current insurance company and ask the same question.


Insurance rates can vary wildly. It is not unusual to see a price difference in the thousands of dollars from one company to another. For this reason, you should always shop around to make sure you are getting the best deal. But remember: you cannot always make an apple to apple comparison. Some insurance companies charge more because they offer better coverage. When comparing prices, make sure you know what you are paying for.

Guest post from Bailey Harris..