7 Factors To Consider When Choosing Independent Insurance Providers


According to the National Organization of Insurance Commissioners, there were 5,965 insurance companies in the United States in 2018. Properties/casualties insurers made up 2,507, life/annuity 841, health 931, fraternal 82, title 60, risk retention group 239, and other companies making up approximately 1305.

Choosing independent insurance providers is not an easy feat. It is quite easy to feel overwhelmed by the options you have. Here are seven factors to keep in mind when choosing an independent insurance provider.

1. Policy Options

You may need to understand your insurance needs as an individual, family, or business. Finding the best policy cover may hinge on choosing the right independent insurance providers. Look at the different plans provided by the company. Compare the quotes, premiums, length, and payout terms. You may also need to figure out the long-term costs and liability limits for the policy options available.

2. Financial Strength

Insurance coverage protects against many risk factors. You may need to ensure that the independent insurance providers are financially stable to pay back when disaster strikes. You can determine this by analyzing the company’s financial performance. There are a variety of online grading sites that provide an analysis of the financial strength of different insurance firms.

3. Pricing

The US insurance industry net premiums totaled approximately $1.32 trillion in 2019. As a savvy customer, you may need to determine your insurance budget before selecting your plan. When it comes to independent insurance providers, you get what you pay for. The cheaper the policy, the lesser the coverage. You may need to pick an affordable plan that provides the maximum coverage you can manage.

4. License

It may sound obvious to search for a licensed insurance provider. However, it may become complicated when taking into account the various laws in each jurisdiction. Independent insurance providers require appropriate licenses for each policy to operate in each state. Contacting your state insurance department can also help you determine if there are any complaints lodged against the firm and how they were resolved.

5. Full-Disclosure

You may need to find independent insurance providers that are honest and forthcoming about the different policies that they hold. Be wary of agents that provide vague information about the benefits, premiums, or cancellation procedures. A full disclosure — including the unattractive part of the policy — can help you make the right decision for you, your family, or your business.

6. Customer Service

You may require support even after the purchase of the desired plan. Independent insurers can help you review your insurance policy annually, providing tailored guidance on the correct coverage needed for your evolving needs. You need an insurance company that will always be there for you when you need them.

7. Reviews

You may need to pick out independent insurance providers with good standing in the local community. An excellent way to assess their reputation is through online reviews. Check what past customers say about their insurance policies and payouts. You can narrow your search to a locally based insurance company for better-tailored policies.

Getting the right independent insurance provider can be overwhelming. Are you ready to find a local insurance agency in Kennebunk to guide you in finding the right coverage for your needs? Reach out today.


Leave a Reply