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In the last blog post, we discussed the first two tests, Cost comparison check and Compliant index check to start. This post, we will continue with 3 more tests which can be performed against the insurance companies.

Test 3: Ratings and Reviews

These days any type of consumer product or service gets rated and reviewed. There are only few reputed rating companies rating branded products giving guidance to the consumer. A well known name is J.D. Power and Associates’ which rates auto insurance taking lot of criteria’s into consideration.  You can find thee ratings for any auto insurance at jdpower.com

There are other third party websites which also gather the reviews of the insurance companies from the consumer. For example, this website http://www.automobileinsurancereview.com has the reviews for most well know insurance companies. But these reviews are more personal from the consumers and difficult to know the actual cause for the complaints so use them with your own discretion.

After checking the ratings and reviews, give scores to your list companies according to their ratings.

Test 4: Financial Strength

Many of the publically traded insurance companies are rated on their financial strength. A.M. Best and Standard&Poor’s, both of these companies publish financial strength ratings for all insurance companies — they measures insurance company’s ability to pay out claims. The A.M. Best rating is expressed as a letter grade from A++ (the highest) to D. Some companies may be assigned ratings of E (indicating regulatory action regarding the company’s solvency), F (in liquidation) and S (suspended). In any case, you should only work with companies that have at least a B+ rating.

The Standard&Poor’s ratings range from AAA (the highest) to CC. Some companies receive ratings of R (under regulatory supervision) and NR, which means ‘not rated’. The letter grades might be modified by a + or – mark. Consider only those companies that have at least a BBB rating. Insurance companies often provide this information on their Web sites, but if not, you can run a search at the A.M. Best and Standard&Poor’s sites or this site insure.com.

Keep in mind that these ratings have nothing to do with the way an insurance company treats its customers. It is only the rating of their financial strength. Give scores for your list companies accordingly.

Test 5: Customer Service&Support

A very important criterion to judge a company is by their customer service and support. These days many companies have website support. You can request quote, chat with the customer service personnel online and clarify your downs, maintain your account online, make changes, start a claim, make payments and renew your insurance. It’s all done without even talking to a person. It has become so easy after Internet revolution except their website should be fast and reliable enough to handle the customer traffic.

Check whether your insurance companies have fully organized website with support 24/7 and how fast they respond to your queries. It is very important to have faster response when you are in emergency situation. Give score to your list of companies by calling them or visiting their website.