The Automotive Labs

Choosing a car insurance is not easy. Especially in the midst of fierce competition nowadays. Almost all insurance companies have a product car insurance. Stay prospective customers choose which ones deserve to take. Therefore below we present some criteria in order not to incorrectly selected:

• 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 be guaranteed to be of service.

• See the insurance package offered. For example extensive guarantees to how much. Therefore, the width of this warranty 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 partners have a garage, so once someone claims not to wait long to repair the vehicle or vehicles reported missing.

• Can be asked in advance convenience, facilities or what added value can be gained when buying the policy at the company. For example, if there was a tow truck, a replacement car or hot-line services, mechanic services, ambulances and so forth. And, last but not least is easy to make changes as well as ease in asking.

Consider also bonafides insurance company. Do not get so there is a claim, the partners did not have a garage. Therefore, many insurance companies claim they are the best. Though its financial condition was very severe.

Besides the above, there are still some factors that should be considered in the process of selecting an insurance company included in choosing the product. Things to remember that in choosing a private insurance company, then that should be considered in general are the three factors.

First, the financial strength (security). Second, services (service). And third, cost or expense. The financial strength of insurance related to the company’s financial ability to fulfill his promise when the situation requires. It is important to know, because not a few insurance companies are looking at the flashy exterior. For example store buildings, vehicles directors’re good. But when going claims from customers, the company is unable to pay.

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

• Asset and liability. This can be seen from the consolidated balance sheet which was published in the newspaper. See also, whether the investment is invested in current or long-term. In terms of liability (ability to repay obligations) will look at the balance sheet, how the debt on reinsurance, how he fulfilled his obligation to pay claims, and others.

Indicators of liability, among others, net equity (own capital) divided by net premiums “ (net premiums) of at least 50%. Own capital divided “ percentage of gross premiums (Gross premiums) of at least 20%. Limit solvability level, as seen from its own capital divided by net premiums of at least 10% and investment funds a minimum of technical reserves divided by 100%.

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

• Its underwriters. Insurance personnel who have qualified or not. That is known from the profile companies that includes his underwriters.

Services (service) is the extent to which the mirror of human resources at the company qualified or not. Moreover, insurance companies are selling a service, so excellent service is key. For instance, the extent to which good service speed in issuing the policy, especially in the payment or claim compensation.

In addition, about the service can actually be felt by the customer. Is this insurance company is really providing the best services for customers.

In this connection it should also be questioned, whether the insurance company to re-insurance on first-class reinsurance security. This can be seen from the annual report. This is important to note, because if companies are 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 entry, then obviously the company is not efficient. When it is not efficient, then the edges will incur a loss. And, if you continually lose, definitely not healthy.

In this connection it can also be seen in the price of premiums. Compare prices with the same insurance premium insurance another. Where the quality is really good.