How to choose the right car insurance?

Choosing insurance is not easy. Especially in the midst of fierce competition today. Almost all insurance companies have vehicle insurance products. Stay of prospective customers to choose which one decent take. Therefore below we present some criteria so that no one chose:

1. Prospective customers do not dwell on the cheap premium rates. Because, in today's competition, many insurance companies slam prices, offers cheap premium rates. Though not necessarily a guarantee of service.

2. See the insurance package offered. For example, extensive warranties to how much. Therefore, the scope of cover is to be adjusted with the desire and ability to prospective customers.

3. See also the network of insurance companies concerned. For example, how many have a branch office or how many partners have a garage, so that there is a claim did not wait long to repair the vehicle or vehicles reported missing.

4. Could be asked first ease, facility or what added value can be obtained when buying a policy in the company. For example, if there is a tow truck, a replacement car or a hotline service, mechanic services, ambulances and so forth. And, last but not least is easy to make changes as well as the ease of asking.

5. Consider also the insurance company's benefices. Do not get so there is a claim, the workshop did not have a partner. Therefore, many insurance companies claim they are the best. Though financial condition was very severe.

In addition to the above, there are several factors that should be considered in the process of selecting an insurance company included in choosing the product. The thing to keep in mind that in choosing a private insurance company, then that should be considered in general are the three factors.

First, the financial strength (security). Second, the service (service).And third, cost or expense. Financial strength of insurance related to the company's financial ability to fulfill its promise if the situation requires. It is important to know, because not a few insurance companies are looking at the flashy exterior. For example storey building, vehicle good directors. But when there claims of customers, the company can not afford to pay.

In assessing the financial strength of these there are several benchmarks that need attention.

a.Assets and liabilities. This can be seen from the consolidated balance sheet is published in the newspaper. See also, whether the investment is planted in the current or longterm. In terms of liability (ability to pay off liabilities) will look at the balance sheet, how the debts to the reinsurer, how he fulfilled his obligation to pay claims, and so forth.

Indicators of net liabilities include equity (own capital) divided by net premiums `` (net premiums) of at least 50%. Capital is divided into `gross` premiums (gross premiums) of at least 20%. Limit the level of solvency, as seen from its own capital divided by net premiums of at least 10% and investment funds technical reserves divided by a minimum of 100%.

b.Underwriting Policy. On the balance sheet and annual report will be seen that the insurance is still a profit, or profit growth. This means underwiting was good policy.

c.Its underwriters. Insurance has personnel qualified or not. It is known from a company profile that includes the underwriters it.

A service (service) is a reflection of the extent of human resources at the company's qualified or not. Moreover, the insurance company is selling a service, so excellent service is the key. For example, the extent to which the speed of service in both the policy issue especially in the payment of compensation or claims.

In addition, about the service can actually be felt by the customer. Is this insurance company was absolutely the best service for its customers.

In this connection it should also be questioned, whether the insurance company in reinsurance class safety.This can be seen from its annual report. It is important to note, because if the company is not backed up by reinsurance, the company is likely to be speculative in receiving the premiums.

The problem is how much the cost incurred by insurance companies in operation. If it is greater than the cost of income, then obviously the company is not efficient. If it's not efficient, it will end up losing money. And, if you continually lose money, certainly not healthy.

In this connection may also see the price premiums. Compare prices of insurance premiums with other insurance. Where the quality is really good.

Today the government has set a benchmark of health insurance (not the only one) is through mechanizing RBC (Risk Capital Base). If the number of RBC, this means the company is valued in good condition. But we should not be fixated solely with RBC numbers.Therefore, it could also be a large company that is doing a major expansion like to open many branches, then the RBC numbers would be small.

In contrast, there is a small insurance company but never to expand, the RBC number was probably much greater.

Thus, RBC numbers can not be used as the sole measure of whether the insurance company is healthy or not.

In this case, also noteworthy is the company's performance in two or three years. How big profits every year, how much gross premiums they receive each year, how much additional capital and assets every year.

And, last but not least is how the behavior of the management company for this. Is there a management company for this broken promise? Has the management of these companies have defaulted and others.