Choosing a car insurance is not easy. Especially in the midst of stiff competition today. Almost all insurance companies have vehicles insurance products. Stay prospective customers to choose which one is viable. Therefore below we present some criteria so that not wrong in choosing:
- 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.
- See the insurance package offered. For example extensive collateral to how much. Therefore, extensive collateral should be adjusted with the desire and ability to prospective customers.
- See also the network of insurance companies concerned. For example how many have a branch office or how many partner have a garage, so that there is a claim not wait long to repair the vehicle or vehicles reported missing.
- Could be asked first ease, facility, or what added value can be obtained when buying the policy in the company. For example, if there is tow truck, a replacement car or hotline services, mechanic services, ambulances and so forth. And last but not least is easy to make changes and the ease in question.
- Consider also the insurance company's bonafides. Do not get so there is a claim, the workshop did not have any partners. Therefore many insurance companies claim they are the best. Whereas financial condition was very severe.
Besides those mentioned above, there are several factors that should be considered in the process of selecting an insurance company include in choosing the product. The thing to remember in choosing a private insurance company, then that should be considered in general are three factors.
First, the financial strength (security). Second, the service. And third, the cost or burden. 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, a vehicle that good directors. But when there claims from customers, the company cannot 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 financial balance sheet is published in the newspaper. See also, whether the investment is planted in the current or long term. In terms of liability (the ability to pay off liabilities) will look at the balance sheets, how the debts to the reinsurer, how he fulfilled his obligation to pay claims, and so forth. Indicators liabilities include net equity divided by net premiums of at least 50%. Capital is divided into gross premiums of at least 20%. Limit the level of solvency, which looks from its own capital divided by net premiums of at least 10% and investment fund 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 underwriting policy was good.
c. The Underwriters. Insurance has personnel qualified or not. It is known from the profile companies that includes the underwriters.
Services is reflection of the extent to which human resources at the company's qualified or not. Moreover, insurance companies are 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 claim. 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 this insurance company to the reinsurance of reinsurance in-class safety. This can be seen from the 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 issue is how much the costs incurred by insurance companies in operation. If greater than the cost of income, then obviously the company is inefficient. If it's not efficient, it will end up losing money. And if you continually lose, definitely not healthy. In this connection, could also see the price premiums. Compare the price of insurance premiums with other insurance. Where the quality is really good.
Today the government has set a benchmark of health insurance (not only) is through RBC mechanism (Rise Base Capital). If RBC number was large, this means the company is valued in good condition. But we should not been fixated solely with RBC numbers. Therefore, it could also be a large company that is doing great expansion like to open many branches, that the RBC numbers would be small. Conversely, there is a small insurance company but never to expand, the RBC numbers was probably much greater.
Thus, RBC numbers cannot 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 the last 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 company's management behavior during this time. Is there a management company for this broken promise? Has this company experienced management defaults and others.
