How To Evaluate An Insurance Company

How do I evaluate an insurance company?

There are several rating agencies just like report cards. There are companies called A.M. Best and Standard & Poor's. These are big institutions that look at the solvency of an insurance company, the claims paying ability, what the company is investing their money in and the claims ratios, and what they do is at the end of the year, give that insurance company a rating. So, there's Standard & Poor's, there's A.M. Best, there's a company called Fitch, one called Weiss, all these companies are specialty companies that do nothing else other than evaluate the benefits of various insurance companies. And then they give you a report card, so that's one way to evaluate if an insurange company is the right insurance company. Also, you can talk to professional people, and your friends who might even be with that same insurance company; you can ask how'd they handle that particular claim, and what kind of rigormoral they had go through before they paid the claim. Those are the kinds of things that you might want to do to check on your own if you think an insurance policy with a given company is going to be a good one.