With the many companies in the insurance industry certainly it will increase competition inside. With more competitive of the competition for the insurance business, various methods were carried out by the insurance company to attract the customers. Beside introducing their product through various promotions, many companies packed the new product so that the customer more interested to invest their fund to the insurance.
Further, could be guessed that with the increasing number of companies in an industry, the competition could become the unhealthy competition.That most often to be heard is the “price war” between the insurance companies, where they continue lower their rate although continuing to be just the same aim.
The question is does the insurance company will and can pay the claim when the premium income is small resulting from the decline of its price. In fact the income of the premium is parallel with the amount of its customers. If many customers purchase their insurance then its will increase the premium too and increase company's capacity to pay their customer’s claims. And again, you ought to be felt suspicious when getting cheap price offer. Although the consumer get benefit in the short term. But in the long-term will cause a loss to the customers themselves, which it is related to the company's ability to pay the claim. So as if the customer gave choices, they more prefer for the good and satisfactory services than the cheap premium but the claim is difficult. Because something that is cheapest might not be the best. What do think?
Customer Prefer Services than the Cheap Premium
Auto Insurance Company Ratings
One of the best ways to find a good auto insurance company is by checking out their ratings. These ratings are a result of massive consumer surveys – people who have actually done business with several auto insurance companies are asked to rate the insurers based on certain criteria that includes customer support and ease of filing claims.
Keep in mind that these ratings are not comprehensive and are essentially just the opinions of a number of consumers who may not necessity comprise a valid representation of the whole consumer base. As in any other rating system, auto insurance company ratings have limitations, and the better you understand these limitations, the better you can use rating information to guide your decisions.
Do not be misled by high ratings, because they don’t necessarily mean that the auto insurance company’s rates are low. Keep in mind that most ratings are limited to certain sates or vicinities, and that the top scorers may not be in business in your area. The auto insurance ratings reflect average consumer perceptions of the auto insurance company and its service, not assurances of any kind. Be open to the possibility that while other people may have had good experience dealing with a particular auto insurance company, you may experience something different.
Ratings can be unreliable, especially if they are based on haphazard surveys that do not verify respondent ownership of the product or services being surveyed. For example, some rating companies may ask random consumers for their opinions regarding a certain auto insurance provider without making sure that the respondent actually uses that insurer. Non-scientific ratings are misleading, so be careful how you use the information they give you. Do not base your decisions on ratings alone – it is important to also do some research yourself.
Risk Management Through Insurance
The risk does not only happen to investment. See the flood disaster currently, made many misery peoples, from that lost property even the life. What we could say, the flood was happened. However, the risks including the flood risk normally can be managed. At least, this risk could be shifted to the other side. Don't be surprised, if there are people that although losing property, like the car to house furnishings, appeared calm. These people might be moving their risk to the insurance company. So, the insurance company that will bear the risk that was experienced by those people.
The insurance program in fact is not the new matter. Various people understood the insurance as the risk manager indeed is need for its existences. However, the awareness to join the insurance program is not yet owned by everyone. Usually, after "learning their lesson" then their realized insurance is important. In spite of that, there are no words to be late. So that the same risk might not be repeated again, or might not be held by yourself, it is good for you considered to join the insurance program.
By joining the insurance program you are shifted the risk to the other side, in this case is insurance company. For the risk that was shifted, you must pay the premium that the amount is depending on the risk that was shifted and the benefits that you wanted.
You could shift your risk by purchase these three kinds of insurance, such as health insurance, life insurance and loss insurance.
1. Health Insurance
Before determine which insurance will be chosen, the first step that should be your first consideration is decisive the requirement. From the three insurance kinds above, determine the level of your preference in accordance with your condition. Generally, the first priority is to follow the health insurance. The reason is, when you were sick, the cost that is spent could not be a little. Although you work to a company and the company gave facilities for the health cost, its amount possibly not in accordance with your requirement. Moreover when you have a certain lifestyle. If you treated in hospital for example, possibly you wanted to be treated with the first class facilities, in fact facilities that were given by the company only second class facilities. To solve this problem you can join the health insurance that its benefit is matched for your requirement.
In the reality, some people not have health facilities. So when being sick, all the fees must be held personally. For them of course the health insurance needed is the absolute matter, because we don’t know when the risk of being sick came to you even we maintain the health well. Therefore, the health insurance could be considered to be owned.
2. Life Insurance
Then how about the life insurance? This insurance has been old enough, but not everyone gaze at must have this life insurance. There are many reasons. From objective one such as because consideration of finance, to the subjective reason as the paradigm mindset. Life insurance is most appropriate to be owned by the person of the productive age, because when your age was not long while your family is still need the financial support, definitely its would be bustle to filled. Therefore, consider also to have the life insurance.
How to choose the life insurance that in accordance with the age, the condition for finance, and the aim had life insurance? If your money to pay the premium is limited then the choice to most relevant is to choose the pure life insurance for protection only. Beside from its premium that is cheap, the return money as the benefit that will be enjoyed by their heir could be big enough. The pure life insurance protection better you take for the lifelong kind. So it is really meant as the inheritance for your family.
If the condition for your finance is good enough, you could consider too in taking the life insurance plus investment. This life insurance could be enjoyed by yourself personally, when up the deadline of the contract evidently your age still quite long. For example, at this time your age is 30 years, you could buy 20 years life insurance. If you aged long, then in the 50 years old, you will enjoy the premium that has been deposited plus its development through investment. But, when the Lord has other decisive and your age is not enough then your heirs will be guaranteed for their finance.
3. Loss Insurance
Next is the loss insurance. This is the insurance that when the flood has destroyed several cities in the world in recent times, was helped many people to not become poor. The vehicle or the house along with its contents that was damaged by the flood, if being insured could be claimed to the insurance company. However, there is also the owner of the loss insurance that evidently could not carry out the claim to the insurance company because of its insurance coverage is limited and not including the loss that is caused by the flood. Therefore, the main matter that must be paid attention when choosing the loss insurance is any aspect covered by this company. You must paid close attention to all of that aspect because of most insurance companies does not explain well to you.
Conclusion, the risk can be managed in various ways. One of them is by shifting this risk to the insurance company. If the condition for your finance is quite good, Could be considered at least to have three policies of the insurance. That is the health insurance, life insurance and loss insurance. But, if your financial is relatively limited, determine the choice in accordance with your requirement. Then, in choosing the insurance company, consider the most basic factor, like the company's genuineness and the premium that became your burden.
Tips to Choose Insurance Product
1. Understand the need of insurance yourself.
Insurance buyer must know exactly and clearly concerning the requirement for his insurance. Choose a product in accordance with the requirement must become the priority.
2. Look for the insurance that you need and it is offered by the insurance companies.
The Insurance Companies offer their product often and very varying. The buyer must read thoroughly the insurance product that was offered. When it is possible you can consult with your friend or insurance expert.
3. Financial ability for buy insurance.
Buyer must know insurance has a premium, this premium is the cost, not investment. In the following year the buyer must pay the premium again.
Don't forced yourself if could not buy this insurance.
4. Compare insurance product with your fund.
This was the process of taking the decision to choose the insurance product that will be bought. It would be better if there are several insurance product, and offered by several companies, so as the buyer had the choices.
5. Consult the policy of the insurance product.
This consultation is important because the brochure that was given to be read often was ignored and the buyer was not more thorough. The brochure and information of the insurance agency better be discussed with the people that understand the law, so your choice is more guaranteed.
6. Choose the insurance company.
The Buyer must be careful in order to be not having a wrong choice.
The buyer must know about the story of the company. The status of ownership of the company sometimes became the electoral factor, but it is not the main factor.
7. Sign the insurance agreement.
This step must be paid attention thoroughly whether the contents of the agreement are in accordance with your wish.
Hope you can choose the insurance product wisely.