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Besides Price, What Factors Differentiate One Car Insurance Company from Another?
October 28, 2021
Cost is important, but it is not the only thing to consider
The marketing used by the one-choice-fits-all, direct/online auto insurance companies would have people believe that the only significant difference between insurance companies is price.
What you pay can vary by company and is undoubtedly an important consideration. However, other factors are essential when comparing car insurance offers. Here are a few things that should be considered:
Financial Rating of the Company:
A company’s financial rating is an indicator of its ability to pay claims in a worst-case scenario. Since insurance’s primary function is to transfer the risk of significant financial loss, a company’s financial stability may be of interest. You can see your company’s rating by checking them on online third-party services. The most rating popular rating service is:
- AMBest Financial Ratings: https://ratings.ambest.com/search.aspx
The Company’s Customer Service and Satisfaction Ratings:
Companies are rated based on how well they provide service to their customers. Among the most popular services that track customer satisfaction are:
- JD Power & Associates:
- Auto Insurance Satisfaction: https://www.jdpower.com/business/press-releases/2021-us-auto-insurance-study
- Home Insurance Satisfaction: https://www.jdpower.com/business/press-releases/2021-us-home-insurance-study
- New York Auto Complaint Ratios
- https://www.dfs.ny.gov/system/files/documents/2021/04/2020_auto_complaint_ranking.pdf
Coverage Enhancements:
Despite what many think, there are differences between how liberal versus restrictive auto insurance contracts can be. Some companies lean towards providing restrictive language and coverage options, while some companies offer consumers a broad range of coverage enhancements and features. Some of those options are a great place to engage with your agent to help determine what makes sense for your situation.
Agent Representation:
Does your company come with an agent who can advocate on your behalf without bias? An Independent Agency/Agent represents you and not just one company. They are in a unique position to assist you with:
- objective advice and counsel regarding the price you pay
- the service you will receive
- the coverage options available.
A quality independent agent represents
you
and is not beholden to any one company.
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The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
