Important Things to Know When Changing Insurance Companies

By Ashutosh Jha → Last Updated on Monday, January 14, 2019
Regardless of the type of policy, from home to auto to life insurance, you should always look for the option best suited for your needs. For that exact reason, there's no shame in switching insurance policies! Switching policies may lead to a cheaper rate, additional coverage, or a better bundle than you could have thought of.

Important Things to Know When Changing Insurance Companies
There are many circumstances for changing insurance policies which don't necessarily have to do with pricing. Maybe you've recently purchased a new car or are expecting a child very soon. Maybe you have switched jobs and need to find new insurance that your company offers.

Regardless of what your situation may be, having the most knowledge will help you make the best out of your insurance switch. Here are a few things you need to know when changing insurance companies.

1. The Rates

Obviously, the price is a big part of the insurance plan. There is no reason to pay more money for the same or nearly the same coverage. Trying to understand the costs of your two insurance options, and knowing exactly what comes with it, is a vital piece of knowledge that you can use to your advantage.

When analyzing the rate of your policy, you may want to compare it to industry averages. This research can be done online and can go a long way in telling you whether you have a good deal on your hands or are better off looking elsewhere.

2. Form of Insurance Coverage

When people think "Form of insurance" they may think of home or auto or life. But, the forms of insurance are deeper than that. For example, there is a huge difference between claims made policy and an occurrence form. These forms of insurance impact how you can access your insurance and how it impacts your day-to-day.

Understanding the form of insurance you have, especially if you're switching, is important. This will give you further knowledge on the steps you must take to access your insurance, as well as how you can expect your money to be managed.

Be sure to look into Chip Berry Insurance and their breakdown of the different insurance plan forms and how to understand each one.

3. Compare Benefits

While rates and form of insurance may be important, what is the key to each insurance policy is the benefits. Understanding the different benefits that each insurance policy offers you is the only real way to qualitatively compare them. Be sure to understand both the scenarios and the amounts of the benefits.

Another key thing to look into is the exceptions of your coverage. For example, are certain medical conditions not covered by your health insurance? Do certain types of accidents not get reimbursed in your auto insurance? Are some disasters not covered for your home insurance?

Insurance exceptions and non-coverage points can be as important as what the insurance actually does cover. Be sure to do good research into exactly what is and isn't covered so that your insurance doesn't leave you stranded in a tough situation.

4. Dependents

Many of your workers will be looking to not only insure themselves but also their families. Most health insurances have policies for dependents, but some are very limited and can often leave your workers' families in a bad situation. In order to ameliorate this, be sure to look into dependants' coverage.

When wondering what type of insurance to get, always look at the coverage with more availability for dependants. Having that option for your workers, in case they need it, can be a great source for them and will make your workers' insurance policy choice easier.

5. Don't Cancel Immediately

When you finally find a good plan and stick with it, you may be tempted to quickly cancel your old plan. But, this may not always be the best idea. You should consider some form of "trial period" to allow your employees to use the policies and see if they have trouble with it.

Be sure to listen to employee feedback. With employees thinking that they have a great insight into an important aspect of their lives, they will respect you more and stay motivated. It will also give you a better idea of how the policy is working for your company overall.

6. Reputation

When changing insurance companies, knowing a new insurance's reputation is very important. Does this company have good support for customers? Are they timely and efficient with their claims? Are they a trusted, nationwide branch or a smaller local branch with a reduced following?

Understanding all of these aspects of the insurance company you hire can be key to ensuring happiness for yourself your employees. Typically, you want an insurance company that you can trust and that will be there when you or your employees need it.

Make sure to look at national reviews and reputations. You may also want to reach out to other business owners so you can understand their experiences with different insurance companies.

7. Taxes

Hiring a new insurance provider can sometimes come with an additional change in tax statutes. Some insurance companies are provided a break and can actually be a good thing for your business to hire in order to help your tax rate.

If your current rate is currently high, be sure to look into how changing insurance companies may impact your tax rate. If you can, involve your accountants in the process of choosing your insurance so that you can get a great deal all around.

Changing Insurance Companies: When to Pull the Trigger

Once you have done all your research and involved everyone, including your lawyers, accountants, and employees, feel free to pull the trigger on changing insurance companies. When changing, you may see a good amount of money saved for your company and employees.

Insurance is an important part of the benefits offered by any company, so be sure to get this right and do your research.

For more tips on how to grow and maintain your small business, check out our other articles

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Ashutosh Jha

Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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