Insurance Company Reviews
Frequently Asked Questions
How do you choose an insurance company?
When considering an insurance company, look at how strong it is financially, its reviews and customer service rankings, and, if possible, how many complaints it receives. Also make sure the company offers the types of insurance coverage you need and has the features you want, like an easy-to-use mobile insurance app.
Is insurance cheaper if you bundle?
Bundling policies is when you carry more than one policy, such as your auto and home insurance, with the same company. Many insurers offer discounts if you keep all your policies under one roof, but whether it's cheaper depends on the discount offered plus how good your rate is to begin with. Before bundling, shop around to make sure you're getting the best overall rate.
What does it mean to have an "A" rating for an insurance company?
An A-rated insurance company is one that's considered highly likely to repay creditors and pay valid claims made by those it insures. Several credit rating agencies issue letter grades to insurance carriers, which allow consumers to easily compare their relative financial strengths. The scales vary slightly, but generally range from AAA to D, with AAA being the best.
What Do AM Best Insurance Ratings Mean?
AM Best insurance ratings provide policyholders a way to verify the financial strength of insurance companies. The agency gathers comprehensive information about insurance companies and distills it into a simple letter grade, from A to D. It is, in a sense, your insurance company's report card. You can use this information to help you make an educated buying decision for your insurance needs.
Why is insurance needed?
Accidents and disasters can and do happen, and if you don't have enough cash to handle them, you could face financial struggles and setbacks. Insurance is one way to protect your life, your health, your family, your ability to earn an income, and to keep a roof over your head when things go wrong.
How do you cancel a car insurance policy?
If you're interested in changing insurers, you'll need to cancel your old car insurance policy once the new one goes into effect. Contact the insurance company for the proper way to cancel to avoid potential penalties, a lapse in coverage, and paying on a policy you no longer need.
An insurance rider or endorsement is an addition to an existing insurance contract that changes the terms or scope of the original policy.
Covered peril refers to the types of damage for which your insurance company will pay. Perils are hazards and events that can cause loss or damage.
An insurance claim is a formal request for payment made by someone to their policy provider. A claim is made after an incident occurs that's covered by the policy.
Underwriting is how an insurance company whether providing coverage to a person or business would be profitable. This may be in regard to insuring a home, car, driver, or a person's health or life.
The insurance premium is defined as the amount of money the insurance company charges for your policy. The insurance premium is the cost of your insurance.
Liability insurance helps cover the cost of losses you cause to another person or their property—whether through negligence or unintentional fault.
Actuaries help insurance companies create and price insurance plans based on how likely it is that they will have to pay out claims.
REPLACEMENT COST VALUE (RCV)
Replacement cost provides you with the money needed to replace items you've lost to covered perils. It's better than ACV because it allows you to put yourself in the same financial position you were in prior to the loss.
Recoverable depreciation is the difference between an insured item’s actual cash value (ACV) and its replacement cost value (RCV). If your depreciation is recoverable, your insurance provider reimburses you for the difference.
ACTUAL CASH VALUE (ACV)
Actual cash value (ACV) is a method of valuation based on the cost of the insured item, minus any depreciating factors like age or wear and tear. It can be applied to any kind of insured property, such as a home or a vehicle.