5 Factors to look for in an insurer

Insurance is insurance, it doesn’t matter where you get it from, right? Wrong. It actually matters quite a bit who you choose to trust your insurance needs with. After all, you’ve committed to paying a monthly fee so that if disaster strikes, you won’t be left to shoulder the financial implications all on your lonesome ownsome.

The thing is, thanks to the internet there are loads of insurers who’ve gone online, making it easier than ever to buy insurance without having to leave the sanctity of your bed. It sounds ideal, but that’s only if you can wade through all the choices out there and select the right insurer whom you can trust. It can be a bit overwhelming, especially if you don’t know what to be on the lookout for.

Here are 5 factors to look for when you’re deciding which insurer to go with:

1. Service is king

When we talk about service, we mean the speed, accuracy, and courtesy that an insurer demonstrates when dealing with customers. You can tell if an insurer prioritises excellent service by whether they call you back in good time once you’ve indicated that you’re interested, how many stars they’re allocated on social media and compliment/complaint sites, and if they’ve won any service-related awards.

A good example of this is King Price, rated independently as the best by their clients on Hellopeter.com in 2018.

2. A good claims reputation

Why do you pay for insurance? So that if disaster strikes, your insurer will pay out and help you recover. Some insurers have a better reputation than others when it comes to handling claims, and you definitely want to check this out. This is a matter of searching online for the insurer’s rejection rate, reading testimonials on their website, and complaint/compliment sites.

3. Reliable backing

The reason why it’s good to take a glance at who gives your insurer the wind beneath its wings, is because it speaks to their stability. You don’t want to insure with a company who doesn’t have trustworthy backing and could go under after a couple of nationwide hailstorms cause everyone and their gran to claim at the same time.

4. The wow factor

A lot of insurers tend to offer the same basic car and home insurance policies. While it’s mostly the same, there are usually a few key differences. These differences generally make up the insurer’s wow factor and include any number of discounts, benefits, and assist services.

For instance, King Price offers decreasing premiums for comprehensive car insurance, R1 insurance for a range of portable possessions, a multiple car discount, and assist services to help you out of an emergency medical situation or a tough jam on the road or in your home.

While it’s certainly impressive to see all these benefits, the trick here is to be ‘wowed’ by what would be relevant to you. If you only have 1 car, then a multiple car discount is nice to know about but not necessarily a tick in your win column. What you’d enjoy is the fact that your premium will decrease every month in line with the depreciating value of your car.

5. The matter of price

We tend to think that price is the most important thing. And it’s a considerable factor! But it should be the final piece of your puzzle. There’s absolutely no point in putting all your faith in the touchingly low premium you’ve been offered, if the insurer also has a bad reputation for paying out claims.

Keep in mind that you want to pay a fair price for a product that could ultimately pay out tens of thousands for a stolen car or flooded lounge from a burst geyser.

The final checklist

This is a lot of info, so here’s the long and short of it:

You’re looking for an insurer who:

• Will answer your questions, call you back, prioritise your requests, and generally treat you like royalty.
• Has a good reputation for handling claims AND for paying out claims (a low rejection rate).
• Is backed by a reliable and trustworthy company that has existed for many years, like Munich RE or Rand Merchant Investment Holdings.
• Offers benefits and extras that offer more value for money.
• Charges affordable premiums that fit into your budget.

Take a moment to find car and home insurance from an insurer who ticks all these boxes. Just click here to get a commitment-free quote.