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Last updated on Oct 15, 2020

The Best Homeowners Insurance Companies

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    If you’re like most people, your biggest investment is your home. It’s important to protect that investment with the best homeowners insurance possible. This is especially important to consider during the Covid-19 pandemic.

    To help you do just that, we looked at dozens of providers nationwide, assessing them for financial stability, customer service, and the ability to customize your policy for your own circumstances. Based on our research, we reviewed the 9 best homeowners insurance companies.

    The 9 Best Homeowners Insurance Companies

    ProvidersReviews.com ScoreAM BestJ.D Power
    Amica4.25A+845
    Allstate4A+814
    USAA4A++878
    Lemonade*N/AN/A
    State Farm3.75A++831
    Progressive3.75A+809
    Liberty Mutual3.25A792
    Farmers3.5A808
    Young Alfred*N/AN/A

    Information as of 08/14/2020

    *New providers may not have enough third party information to calculate a score.

    Amica

    Amica is not one of the largest insurers in the U.S., but its great customer service outperforms many of the big names in the industry. It offers standard coverage options and, since it’s owned by its policyholders, you may receive a dividend each year. 

    Amica

    Best for Customer service

    Why we chose it

    Amica scores highly with consumer satisfaction organizations, but the reason isn’t that it has a lot of unique bells and whistles. Instead, the company has a laser-focus on the customer experience and everything it does, from online quotes to claims payout, is designed to keep its policyholders happy.
    • 4.5 Reviews Score
    • A+ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 845* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Amica scores highly with consumer satisfaction organizations, but the reason isn’t that it has a lot of unique bells and whistles. Instead, the company has a laser-focus on the customer experience and everything it does, from online quotes to claims payout, is designed to keep its policyholders happy.

    Pros

    • Great customer service
    • Handles claims quickly and efficiently
    • Money-back dividends for some policies
    • Replacement value for personal belongings

    Cons

    • Bare-bones website
    • Limited discounts
    Read More

    Discounts Available

    • Credit when you insure your new or remodeled home
    • Burglar or fire alarms; sprinkler system
    • Automatic detection devices such as a water or gas leak system

    Unique features

    Amica’s most unique feature is its consistent appearance at the top of best customer service lists. It’s been number one with J.D. Powers, in fact, for 18 years—that’s a legacy of customer care that is hard to match.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Amica:

    Allstate

    Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.

    Allstate

    Best for New Homebuyers

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.
    • 4 Reviews Score
    • A+ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 814* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.

    Pros

    • Diverse discount opportunities
    • informative website and digital tools
    • Above-average customer service

    Cons

    • NAIC complaint index high
    • Financial strength ratings good, but not great
    Read More

    Discounts available

    • Early signing discount
    • Home buyer discount
    • Hail-resistant roof discount

    Unique features

    Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Allstate:

    USAA

    Like Amica, USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.

    USAA

    Best for Military Members and Families

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.
    • 4 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 878* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • N/A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.

    Pros

    • Outstanding customer service
    • Policies tailored to military family needs
    • Competitive pricing

    Cons

    • Only available to current and former military members and their families
    • Limited discounts
    Read More

    Discounts available

    • Save 10% if you bundle with auto
    • Claims-free 10% discount
    • Home security system discount

    Unique features

    USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on USAA:

    Lemonade

    Lemonade uses AI and technology-based account management to lower costs and provide fast payout on claims. Some claims, the company says, may be paid out within a few minutes — something no traditional insurer can promise.

    Lemonade Home Insurance

    Best for Fast Claim Payments

    Why we chose it

    Lemonade does business differently, and that benefits its policyholder who can boast of extremely low rates and blindingly-fast service.
    • ** Reviews Score
    • N/A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • N/A J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • B+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Lemonade does business differently, and that benefits its policyholder who can boast of extremely low rates and blindingly-fast service.

    Pros

    • Fast claims processing
    • Seamless digital experience
    • Zero Everything deductible

    Cons

    • Hard to access live customer service
    • Little customization available
    • Not available nationally
    Read More

    Discounts available

    • Bundling discount for members with Lemonade homeowners and pet insurance policies
    • Fire protection discount
    • Gated community discount

    Unique features

    Lemonade makes your online experience easy and efficient, from getting a quote to making a claim. As a B Corp, its business model features the opportunity for you to have part of your premium given back to a charitable cause you care about.

    **New providers may not have enough third party information to calculate a score.

    Further Reading on Lemonade:

    State Farm

    State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about home ownership in general.

    State Farm

    Best web experience

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.
    • 3.75 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 831* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.

    Pros

    • Financially strong
    • Excellent web presence
    • 19,000+ agents nationally
    • Informative blog

    Cons

    • Limited discounts
    • Higher premiums
    Read More

    Discounts available

    • Multiple policy discount
    • Fire, smoke, or burglar alarms discount
    • Impact-resistant roof discount

    Unique features

    State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on State Farm:

    Progressive

    Progressive is widely known for its iconic commercials and promises to help you find the best insurance rates. With Progressive, you can get coverage for common, broad, and special perils.

    Progressive

    Best for Easy Online Quotes

    Why we chose it

    Progressive understands that one size doesn’t fit all when it comes to homeowners insurance. That’s why their price quote is tailored to your location and allows you to select the coverage you need.
    • 3.75 Reviews Score
    • A+ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 809* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Progressive understands that one size doesn’t fit all when it comes to homeowners insurance. That’s why their price quote is tailored to your location and allows you to select the coverage you need.

    Pros

    • Access to an online quote tool
    • Service available in all 50 states
    • Several discounts available

    Cons

    • Insurance quote varies based on home location and condition
    • Average to below average customer service ratings
    Read More

    Discounts available

    • Save 10% by bundling home and auto insurance
    • Discount for owning an alarm system
    • Discount for going paperless

    Unique features

    You can bundle your Progressive auto and home insurance to save on your premiums.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Progressive:

    Liberty Mutual

    Liberty Mutual’s homeowners policies can be cheaper than most if you’re able to take advantage of the company’s extensive discounts list. You can earn a discount for everything from being claim-free for five years to putting a new roof on your home.

    Liberty Mutual

    Most Personalized Online Quote

    Why we chose it

    Liberty Mutual should be near the top of the list for budget hunters looking to customize their policies. Discounted premiums and multiple endorsement options are key to the company’s appeal.
    • 3.25 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 792* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Liberty Mutual should be near the top of the list for budget hunters looking to customize their policies. Discounted premiums and multiple endorsement options are key to the company’s appeal.

    Pros

    • Extensive discounts
    • Inflation protection coverage
    • Add-ons allow for customizing

    Cons

    • Mediocre customer service ratings
    • Below-average claims satisfaction score from J.D. Power
    Read More

    Discounts available

    • Paperless statements discount
    • Insured to value discount
    • New or renovated house discount

    Unique features

    By bundling discounts — which isn’t hard to do — you can achieve a considerable savings on your premium costs.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Liberty Mutual:

    Farmers

    Farmers offers an unusual quoting system that features three tiers of service. Within those three tiers, you can further customize your policy if you have, say, expensive electronics or jewelry to cover.

    Farmers

    Best Pricing Options

    Why we chose it

    Those three options for your coverage allow you to choose a policy that works for your pocketbook. Even at the lowest level, you can choose higher coverages for specific items, making your policy one of a kind.
    • 3.5 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 808* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Those three options for your coverage allow you to choose a policy that works for your pocketbook. Even at the lowest level, you can choose higher coverages for specific items, making your policy one of a kind.

    Pros

    • Three tiers of coverage
    • Bundling discounts
    • Identity theft coverage available

    Cons

    • Sparse website
    • Not as many discounts
    Read More

    Discounts available

    • Nonsmokers discount
    • Multiple policies discount
    • Professional group member discount

    Unique features

    Farmers’ three tiers — standard, enhanced, and premier — let you pick the best coverage based on cost and coverages. The highest level, premier, includes replacement cost coverage with 100% reimbursement regardless of policy limits.

    *J.D. Power 2019 Home Insurance Customer Satisfaction Survey, based on a 1,000-point scale

    Further Reading on Farmers:

    Young Alfred

    Young Alfred is an insurance marketplace that helps you find the best homeowners insurance policy at the most competitive prices. It uses technology to narrow down choices so that you can compare options from 40+ top carriers such as Nationwide and Progressive.

    Young Alfred

    Best Quote Aggregator

    Why we chose it

    Young Alfred models a new way of doing insurance. Powered by AI and the latest technology, it finds the policy that’s most suited to you, at a price you can afford.
    • ** Reviews Score
    • N/A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • N/A J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Young Alfred models a new way of doing insurance. Powered by AI and the latest technology, it finds the policy that’s most suited to you, at a price you can afford.

    Pros

    • Offers the best of 40+ insurers
    • 24/7 customer service
    • Effective use of technology

    Cons

    • Lacks personal attention
    • Not all national insurers included
    Read More

    Discounts available

    • Claim-free discount
    • Storm shutters discount
    • Home safety features discount

    Unique features

    Young Alfred works to make the online experience simple and reliable. As an aggregator, it has access to multiple insurers and can save you a lot of leg work by finding the best quote through its proprietary algorithms.

    **New providers may not have enough third party information to calculate a score.

    How We Selected the Best Home Insurance Companies

    We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best companies. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:

    • Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using JD Power Homeowners Satisfaction ratings.
    • Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available. 
    • Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
    • Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.

    What To Look For When Buying Home Insurance

    Consider Coverage

    Home insurance policies should include the following key types of coverage:

    • Dwelling coverage – Covers the cost of rebuilding or repairing the structure of your home.
    • Personal property coverage – Covers the cost of replacing your personal belongings that are kept within the home.
    • Liability coverage – Covers the cost of defending yourself from lawsuits related to bodily injury or property damage and paying for any related losses, such as medical bills or repairs.
    • Additional living expenses – Covers the cost of accommodations, food, and other expenses if your home becomes uninhabitable.

    Dwelling coverage includes reconstruction costs in the event that your home is damaged or destroyed. These are some of the common costs to consider:

    • Plumbing – One of the most expensive parts of your home, the plumbing system consists of sinks, toilets, and bathtubs, gas and water supplies, and the pipes and vents that carry them.
    • Electrical – Your home’s electrical system is subject to strict local codes that are regularly updated and require the involvement of a professional electrician. Controlled by a main switchboard, this system extends to every corner of your house via wiring, outlets, and appliances.
    • Roof – The national average cost to build a new roof is approximately $7,800.
    • Heating – There are many different types of home heating systems, although natural gas and electric are the most common. When rebuilding or renovating an HVAC system, paying more upfront may lead to significant energy bill savings down the line.

    Inventory of Your Belongings

    To make sure your home insurance limit covers everything you own, you should take an inventory of all the possessions in your house. Try using a home inventory smartphone app to make the process easier.

    Consider Your Location

    Location is a major factor in determining home insurance premiums. Areas with higher rates of crime and extreme weather events are typically more expensive to insure.

    But even your home’s location within a region or city matters. “Homes in close proximity to a fire department may cost less to insure,” says nonprofit InCharge Debt Solutions. “And while seclusion can have its advantages, it won’t lower your insurance rates if emergency vehicles may have difficulty reaching your home.”

    Gather Quote

    You should always shop around and get quotes from multiple insurers. This will determine who can offer you the most competitive monthly premium based on your home and the type of coverage you need.

    How to Calculate How Much Insurance You Need

    According to Nationwide, two-third of homes in America are underinsured. This is because homeowners often confuse their lender’s minimum requirements with what they actually need. In an interview with CNBC, real estate attorney Peter Morra explained the difference. “Sometimes it’s cheaper to just get a policy that covers you for a dollar number that covers your mortgage, but you want to be sure that you can replace what you have if something happens,” says Morra.

    When calculating how much home insurance to purchase, there are two major factors to think about. These are:

    • Find out what type of coverage you need. Your lender may have their own requirements, but you should at least have dwelling coverage for the home itself, personal property coverage for its contents, and liability insurance in case you are held responsible for injury or damage. Additional coverage can help protect high-value belongings and insure you against specific hazards in your geographic area.
    • Choose your policy limits. Again, check with your lender to find out what the minimum requirements are, but don’t assume this is enough. Make sure your dwelling coverage will cover the cost of rebuilding your home in the event that it is completely lost and your personal property coverage is enough to replace everything you own within your home. Liability coverage should at least cover your net worth or the total value of your assets minus any debts (like your outstanding mortgage balance.)

    Ask The Experts

    Image of William Taylor

    William Taylor

    Senior Career Advisor, VelvetJobs

    Insurance is oftentimes intimidating by design, and insurance companies serve a unique role in bridging the gap between their product and consumers. What can we learn from insurance companies’ marketing strategies?

    I have observed that most of these insurance companies are now leveraging the power of social media to reach their customers. They are adopting a voice that is less intimidating and sharing content that is engaging and interactive. These companies are coming up with out of the box ideas to break the stigma that insurance is boring.

    Many consumers resist change from what’s familiar, even if it’s to the detriment of their finances or overall wellbeing. What kinds of techniques do insurance providers use to overcome this hesitation and entice consumers to switch over?

    Some of my clients from the healthcare insurance industry are organizing educational webinars as part of their marketing strategies. These webinars give them the chance to break down the complexities of health insurance quotes for prospective clients.

    To entice customers, many insurance companies are adopting a more friendly approach. They are providing valuable knowledge for free on their online platforms and going above and beyond to personalize their services for every client. The insurance agents today are more empathetic and try to win the trust of the customers.

    Bottom Line: Insurance companies are now leveraging the power of social media


    Image of Willie Greer

    Willie Greer

    Founder, The Product Analyst

    Many consumers resist change from what’s familiar, even if it’s to the detriment of their finances or overall well-being. What kinds of techniques do insurance providers use to overcome this hesitation and entice consumers to switch over? 

    There are three main methods of insurance marketing: extensive, exclusive, and selective. The extensive method is using services of any go-between company, capable to conclude one or more insurance contracts.

    Moreover, the exclusive method is used when the insurance company counteracts with only one general insurance agent, which has an exclusive right to conclude an insurance contract in a given region. This contract should be concluded in favor of the above-mentioned insurance company. In addition, a selective method is used, when the insurance company counteracts with two or more general agents in a given region.

    The essence of insurance is to protect any asset from all kinds of threats and losses. That way, it can be assured that the value of an asset can be preserved.

    What advice would you offer consumers on how to keep advertising in perspective when shopping for an insurance carrier?

    Consumers must keep in mind that not because it was advertised well means it is the best in the market. It may be a factor to consider but always remember what your priority is before heading to buy insurance. Weigh your options and know when to fancy an advertisement and when to flop it. Through this, you will be able to get what you really paid for.

    Image of Joy Gendusa

    Joy Gendusa

    Founder & CEO, PostcardMania

    How do insurance companies differentiate themselves from their competitors in their marketing? 

    One very successful way I’ve seen insurance competitors differentiate themselves from the competition is with targeted mail pieces that feature a highly personalized technology called variable data. Variable data inserts each individual’s information into the design of your mail piece so that each piece looks like it was designed specifically for that recipient. And you can customize almost any type of data to be variable, from the first name to the type of policy to even the photo on your mailer. THE biggest and best variable data differentiator an insurance company can include is the expiration date of the recipient’s policy. That way, agents know WHEN to hit homes with their mailers and people know by when they need to call for a quote. Calling someone out by name with something personal is a time-tested way to grab attention.

    Many consumers resist change from what’s familiar, even if it’s to the detriment of their finances or overall well-being. What kinds of techniques do insurance providers use to overcome this hesitation and entice consumers to switch over?

    By focusing on a non-invasive marketing platform like direct mail, insurance agents and brokers are able to catch people at a good time, when they’re at peace with receiving advertisements — and that’s when they’re checking their mail. People hate to feel like advertising is stealing their free time. That’s why things like commercials and pop-up ads are so despised — they haven’t been granted permission. But when we’re sorting our mail, we’re open to commercial communications and oftentimes we’ll put something aside if it’s the right message at the right time. That’s how you can start to build the trust that’s needed to help people get over the discomfort of shopping around for insurance. Let them pick the time and the place for it.

    Image of Chuck Kim

    Chuck Kim

    COO & Co-Founder, Executive Digital

    Many consumers resist change from what’s familiar, even if it’s to the detriment of their finances or overall well-being. What kinds of techniques do insurance providers use to overcome this hesitation and entice consumers to switch over?

    The trust between the consumer and agent and/or price is the key selling point. When consumers hear “you’ll save X%”, that’s the sales trigger. What many forget is that selling at a price point works for a small percentage of consumers. Education, white papers and, most importantly, digital omnipresence should be the key for all insurance companies.

    What advice would you offer consumers on how to keep advertising in perspective when shopping for an insurance carrier?

    Do research on the insurance agent online and interview the agent to make sure you can trust them. The agent will be the one who creates the right policy to protect you. The company itself should be researched, because, at the end of the day, in a bad situation, the relationship between the Agent and Agency will be of utmost importance, so spend time researching!

    Image of Ty Stewart

    Ty Stewart

    CEO & Founder of Simple Life Insure

    Insurance is oftentimes intimidating by design, and insurance companies serve a unique role in bridging the gap between their product and consumers. What can we learn from Insurance companies’ marketing strategies?  

    Insurance has to pay special attention to humanizing its products and services and has done so through a robust, humanizing ecosystem of content marketing. Insurance coverage can be jargon-filled and technical, with tons of contract clauses and liability statements. It’s frankly overwhelming, so the insurance industry as a whole has really stepped up to the plate with diverse, humanizing and educational digital content.

    In particular, we see this in really approachable e-newsletters, videos and vlogs, mobile touchpoints, and a ton of user-friendly, value-rich industry blogs delivering content that empowers folks, instead of scaring them.  

    How do insurance companies differentiate themselves from their competitors in their marketing?

    The most successful insurance marketing connects with its audience on a human level, not by selling products or commodities.

    These brands differentiate themselves in their language and touchpoints. They don’t use industry jargon. They’re easy to get in touch with. You speak with a real person as soon as possible if you want, but can overwhelmingly service your own needs on a digital-first basis rather than a loop of automated phone calls or in-person appointments. Companies that adapt best to humanizing interactions and approachable digital service offerings are the ones who stand out from the crowd these days. 

    What advice would you offer consumers on how to keep advertising in perspective when shopping for an insurance carrier?  

    It’s essential to understand that your insurance and finance needs evolve in life. What you paid for in your twenties and early thirties will not suffice in your 40s, which itself won’t work when you’re retired. 

    Understand that your insurance reps or financial advisors aren’t continually trying to upsell you new products just because. Most are sincerely looking out for your evolving interests. Know what your own interests are and how they’re likely to change over the years, and you’ll feel better serviced, not continually sold to.

    Image of Ethan Taub

    Ethan Taub

    CEO of Loanry

    How do insurance companies differentiate themselves from their competitors in their marketing?

    Insurance is a very mature market, there are likely thousands of insurance companies in the US alone and it is difficult for anyone to stand out. Competitive advantages in insurance are difficult to establish, the durability of such competitive advantage is often determined through creating barriers to imitation. The longer it takes a competitor to imitate your distinctive competencies the greater the opportunity you have to build a strong market position.

    How did you personally choose your current home or car insurance carrier, and what role, if any, did that carrier’s advertising techniques play in your decision? 

    I have to admit, I took the easy road and used a comparison website. Advertising was not a consideration for me beyond certain brands I was familiar with and unfamiliar with. I made my decision based on the price and the coverage of the plan.

    Image of Adam Jackson

    Adam Jackson

    Digital Marketing Manager, Big Leap

    Insurance is oftentimes intimidating by design, and insurance companies serve a unique role in bridging the gap between their product and consumers. What can we learn from Insurance companies’ marketing strategies? 

    I think great insurance companies embody trust and dependability in their marketing efforts. They want you to know that you won’t get taken to the cleaners or left out in the rain by them. That principle is applicable to just about every marketing strategy if people truly believe you have their best interest at heart they are more likely to work with you. 

    What advice would you offer consumers on how to keep advertising in perspective when shopping for an insurance carrier?  

    I give the same advice for most advertisements to my friends and family. Marketing is usually based on highlighting and accentuating the “good” and downplaying the “bad.” So when you see an advertisement, you can take the good things they say and use them as the basis for your research, but whatever they say is so great about them usually has a “price” to be paid and you need to identify those “costs” before you make a decision

    Image of Laura Packard

    Laura Packard

    Vice President of Marketing & Client Relations, Aartrijk

    Many consumers resist change from what’s familiar, even if it’s to the detriment of their finances or overall well-being. What kinds of techniques do insurance providers use to overcome this hesitation and entice consumers to switch over?

    This scenario is where independent agents are most effective. Purchasing the right type and coverage amount of insurance are decisions that should be made with the assistance of someone who can help educate and make informed suggestions. That’s what independent agents do best. They have a variety of carriers at their fingertips and can spend enough time with their clients to best determine their coverage needs. There’s no extra cost to use an independent agent, and it’s an effective way to ensure consumers are really covering their bases and protecting themselves adequately and thoroughly. 

    What advice would you offer consumers on how to keep advertising in perspective when shopping for an insurance carrier? 

    Keep in mind that you shouldn’t automatically go with a company whose commercials make you giggle. There’s a lot more to the insurance buying process than humor or price. You are best positioned by not shopping for a carrier, who will likely only have one option for you. By finding an independent agent, you will unlock access to numerous carriers as well as have a professional who will be able to guide you through the process as your advocate. These independent agents might not have snazzy commercials on TV or radio, but they are the ones sponsoring your town’s little league teams, buying ads in high school yearbooks or active in your local Chamber of Commerce. Don’t dismiss working with an agent just because he doesn’t have a multi-million dollar advertising budget like direct carriers do.

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    About the Authors

    Lisa Melillo is a personal finance writer for Reviews.com. Over the past seven years, she’s covered insurance, travel, and home-related topics for a variety of online publications and businesses.

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