Essential Insurance Resources

Whether you're a current policy holder or are in the market for coverage, you'll need someone to help you with the issues that arise along the way. Read on to learn about the insurance resources no policyholder should be without.

An Insurance Broker

Insurance brokers contract with several different insurers to find the best policies for their clients. If you cannot find the policy or insurance rates you want on your own, you might consider finding a broker. Sometimes, brokers have access to rates and policies that are not advertised directly to consumers. Additionally, a broker can advise you on your coverage options and help you design an appropriate policy. Remember that brokers work on commission, however, so they usually try to sell you the most expensive coverage possible.

An Insurance Agent

An insurance agent will meet with you for free, whether you're a current or prospective customer. Insurance agents work for just one company, so you will only be able to discuss the policies and insurance rates offered by a single insurer. An insurance agent can advise you on your coverage needs and help you build a quality policy. Like brokers, insurance agents also work on a commission basis, so you should expect the agent to push the more expensive forms of coverage. If you don't want to deal with an agent, most insurers also offer customer service representatives that you can call toll-free to get your questions answered.

The Department of Insurance

Every state has an agency devoted exclusively to the regulation of insurance companies. This agency is usually called the department of insurance. The department of insurance licenses companies, agents, and brokers to issue coverage in your state. In addition, the department of insurance oversees consumer complaints against insurers. Some states' departments of insurance also maintain records of average insurance rates by company and city. The website of the department of insurance can be a valuable resource for consumers to compare insurance premiums and research insurers' complaint histories. Likewise, if you are a current policyholder and are displeased with the way your insurer is handling your claim or policy, you can use the same website to file a complaint.

Financial Rating Agencies

The insurance company you select should have a strong financial foundation as well as low insurance rates. Four different agencies rate the financial strength of insurance companies: Fitch, Moody's, A.M. Best, and Standard & Poor's. Each of these companies publishes an index rating insurers' finances according to their unique criteria. You should consult the ratings of more than one of these agencies, as their ratings tend to vary somewhat. You can find current ratings on most insurance companies on the websites of these agencies.