It is no secret that many companies tend to focus more on profits than fulfilling financial obligations to their customers. Insurance companies are not exempt from this practice, as there are some insurers who are quick to collect premiums but reluctant to pay legitimate claims. However, not all insurance companies are the same, and some are more trustworthy than others. To help you steer clear of dishonest insurance companies, here is a simple guide:

Premiums

While we all want to save money, insurance policies that are too cheap to be true are typically not worth it. Comparison websites may only rank quotes based on price, but cheaper is not necessarily better. Insurance requires pooling of funds, so when a company offers a premium that is ridiculously low, you should be wary. It is possible that in the event of a claim, the insurer might not have sufficient funds to pay for it.

Reviews

Thanks to the internet, we have access to reviews detailing other customers’ experiences with companies. You can read reviews of an insurance company’s services before making a decision. However, be aware that some companies post fake reviews. Therefore, it is essential to read as many reviews as possible.

Referrals

The advice of friends, family members, and professionals can be vital when selecting an insurance company. It is better to gather opinions because it is as authentic as reviewing with their personal experiences.

Company Annual Report

If you are comfortable with numbers, checking the company’s annual report is a good idea. An annual report contains a comprehensive review of the insurer’s activities for the preceding year. You can find useful information like the company’s balance sheet, profit and loss, cash flow statements, and notes that explain the financial statements.

Legal Cover Extras

Legal cover is useful when pursuing an uninsured loss. Insurance companies are more likely to fulfil claims that fall within the purview of their policies when they are made through a solicitor. Prolonging such claims cost them a lot more in legal fees, especially if they lose the case. Therefore, you can file a claim through a solicitor, increasing your chances of success.

If you find that investing in insurance is daunting and challenging, you can seek the services of an insurance broker. An insurance broker can help you select the best policy by comparing rates and coverage.