Reader’s Question:

There are currently many motor vehicle insurance companies out there offer almost similar products. How can I choose one that I know will make extra efforts in taking care of me in the future?

Daniel

Pierre SD

A good way to know whether the motor vehicle insurance companies you have in mind are good and reliable is to hear other people’s stories regarding their experiences with those companies. You can read testimonials of current or former customers of these insurance companies and determine if you relate or might relate to their situations.

Another good idea to determine the reliability and amiability of the motor vehicle insurance companies is to hear the testimonials of your own friends who have insurance policies from those companies. If they have their insurance policies from other companies that are not in your list, ask them about it. How long can the companies process their claims? Do they have insurance agents that you can truly trust? Will they give you the opportunity of a well-informed decision? If your friends are happy with the vehicle insurance companies they are with, you might also have a pleasant experience with them too.

Your vehicle insurance agent may be able to provide you with his company’s financial statements if you ask for them. You can look through the company’s financial report to determine if it has the capability to pay you your claims in the future. If that is too much for you to handle, you may also rely on the services offered by independent rating firms, such as Standard & Poor’s Ratings, that assess the long-term financial stability of various companies.

Another way to assess the motor vehicle insurance companies you have in mind is to look at their company history. Who is sitting in their board of directors? Most of them could be public figures. Are they trustworthy people? How long have the companies been in the vehicle insurance business? How are they doing financially during the crisis that they experienced in their timeline such as the 9/11 attacks and the recent economic recessions? Do you think they are a stable company? Do they have legal proceedings regarding not paying insurance claims? These are just the many things you may have to ask when you assess insurance companies.