Crucial Facts to Know About Buying the Best Life Insurance

No matter how exciting and adventurous your lifestyle is, you reach a certain age when you must consider your financial situation and family obligations. Thinking about your spouse’s or children’s future makes you realize how much we depend on each other. It might sound cruel, but we must accept and prepare for the possibility of sudden death or unexpected terminal illness. Therefore, you undoubtedly could benefit from finding the best life insurance for you.

We presume that you have already taken into account your mortgage, everyday expenses, future college fees, and student loans for the children. Buying life insurance is like setting up a safety net designed to ease the financial burden from your loved ones’ backs. Death benefits cannot compensate for emotional losses. However, they could pay for the final expenses and ensure there’s enough money for your family to get back on their feet.

Taking the First Step

Deciding to sign up for a life insurance policy is the first step of a lengthy process. You must take into account many variables when choosing a policy. Thus, it could take quite some time for you to single out the best life insurance on the market. 

The 2019 Insurance Barometer Study says 57 percent of adult Americans own life insurance. Almost the same proportion of people in the U.S. overestimate the cost of a term life insurance coverage by as much as three times. This indicates that there is a considerate lack of knowledge about the topic. If you have already made up your mind to buy life insurance, but you feel confused and don’t know where to start, let us help you. This article will help you make an informed decision and answer your questions about insurance coverage, premiums, and benefits.

It will make the process clearer and provide some guidelines. An overview of some of the top insurance providers and their leading life insurance products currently on the market are a good starting point for your research. Let’s start with the basics.  

How Life Insurance Works

If you missed our Life Insurance 101 guide, let us summarize. Signing up for a life insurance policy means that you will make monthly payments to a life insurance carrier. In return, they pay your beneficiaries in the event of your passing, also known as a death benefit. The amount of coverage, the type, and duration are up to your choice. You can settle upon lesser coverage to provide enough cash to cover your funeral (also known as burial insurance). Alternatively, you can look at life insurance as a tax-free investment (permanent insurance). The last is also known as life insurance that does not expire. You can use that policy to withdraw cash, cover your child’s college tuition, or pay hospital bills.

Of course, you can’t decide how much you will pay every month in premiums. The insurer will consider your health condition and age when setting your payment amounts. However, it is essential to realize that some companies are more tolerant of tobacco users. On the other hand, others will see you as a higher risk if you don’t undergo a medical exam before signing up for a policy.

Benefits of Life Insurance

The first step in signing up for a life policy is to identify why you need it. It is individual, and many factors weigh in. Some of these factors are your stage life, size of your income, the number of relatives who depend on you, etc. Generally speaking, the main reasons people state for owning a life insurance policy in 2019 are income replacement, coverage of final expenses, mortgage payoff, and wealth transfer. Other motivations that are on the rise, according to the survey, include business purposes, policy replacement, estate taxes and liquidity, and charitable gifts. 

When defining your main reasons for buying life insurance, reflect on your life situation and what will happen if you die unexpectedly. What about your children? How old are they? What does it cost to care for them? What will their tuition cost in the future? How is the situation with your mortgage? Maybe you are responsible for taking care of other relatives. Through this process, you will also have a more unobstructed view of why you need life insurance.

Side view of elderly man sitting on wheelchair looking at life insurance contract form

How much coverage should I buy?

One of the most widespread suggestions for calculating the amount of coverage you need is to multiply your annual income by ten. Let us give an example. If you earn $50,000 annually, you should apply for $500,000 in coverage. However, if you want to do the math on your own, here is a list of questions prepared by the National Association of Insurance Commissioners:

  • Does anyone depend on me financially? 
  • How much of the family income do I provide? 
  • How will my family pay my final expenses and repay debts after my death? 
  • Do I want to leave money to charity or family? 
  • If I have life insurance through my employer, is it enough to meet my financial obligations? 

Here is a bit more information to consider. The average expenses for a funeral (i.e., service, casket, gravesite, and headstone) are estimated to cost between $7,000 and $10,000. Thus, your burial is already a considerable financial burden for your relatives.

If you are part of group life insurance as an employee, have you made yourself aware of the insurance conditions and the fine print? Often you will realize that the coverage they offer is less than your estimated needs. Moreover, if you change jobs, the policies can rarely be transferred.

Who needs life insurance?

The family’s sole or primary money provider should have life insurance, but it makes sense for both partners to have coverage. Housework, even though it’s unpaid, has a monetary value. If a stay-at-home parent passes away, the work he/she was doing will have to be taken over by other family members or hired help. Thus, the most reasonable choice for financial stability is for both partners to buy life insurance. 

What should I look for when choosing a life insurance company?

With more than 700 different life insurers in the U.S., it is a vast industry. It is also impossible to browse through all the companies’ websites, research their life insurance products, and get familiar with the policies they offer.

Here are a few hints on what is essential to examine when choosing the best life insurance for you. 

Insurance Companies’ Financial Strength

The most important thing is the financial strength of the insurance carrier. After all, if you die in 20 years, you need the company you signed a life policy with to still exist and be ready to pay the coverage to your beneficiaries. Here is the list of the nine biggest life insurers, according to market share. Next to them is the percentage of the market they hold. Did you notice that the market share of the first is almost double the size of the company rated second?

1. MetLife Inc. – 14.1 percent

2. Prudential Financial Inc. – 7.8 percent

3. New York Life Insurance Group – 5.2 percent

4. Massachusetts Mutual Life Insurance Co. – 4.0 percent

5. American International Group (AIG) – 3.9 percent

6. Lincoln National Corp. – 3.8 percent

7. Principal Financial Group Inc. – 3.7 percent

8. AXA – 3.3 percent

9. Transamerica – 3.3 percent

Market Share

Market share is not the single most crucial factor to scrutinize when analyzing a company’s financial stability. The higher the share, the more policyholders choose the company. This indicates that they are trustworthy. 

However, you should also analyze the company’s finances, investments, and stability. For an unbiased assessment of the economic state of a company, turn to one of the leading independent rating agencies such as A.M. Best, Fitch, Moody’s, or S&P. Keep in mind that A.M. Best is the only one that specializes in the life insurance business, so check their financial strength ratings first. Below you can find a bit more about how companies are evaluated. 

Customer Service Level 

The next thing which should define your choice of company is the client relationship and customer satisfaction. Attention, swiftness, and personalization are some of the things you are seeking. In addition to dealing with the loss of a loved one, you don’t want to leave your family with slow, complicated procedures and clerks, do you? Before signing up with a company, check for feedback on social media, ask around, and read reviews. It can be useful to formulate questions that you wouldn’t otherwise think about asking.  

Get familiar with the company’s existing procedures. The simplified approach might save you time, but it will probably cost you money. Some companies might tend to take more time and request more documents and effort from you. However, they could have a sympathetic eye for smoking or other habits considered risky by most insurers. 

How are life insurance providers rated?

Independent rating agencies evaluate the current economic state of affairs of companies, industries, and even states. They research and analyze global capital markets and prepare tools for businesses to navigate better in the financial world. In each sector, rating agencies have different criteria based on which they do an assessment. Moreover, every agency has a distinct methodology that varies in the factors it considers. Thus, the same company’s rating might differ from agency to agency. 

Top Rating Companies

The leading rating companies are S&P Global, Fitch, and Moody’s. However, the portfolio of companies, industries, and countries is as broad as it can get. Therefore, we recommend consulting A.M. Best’s evaluation of a company first. As we already mentioned, it stands out from the other agencies because it is focused only on the insurance sector. They evaluate the financial strength and credit ratings by analyzing balance sheets, their level of operational performance, and other details.   

There is also the Comdex Index, which is designed to make it easier for one to study existing financial strength ratings. It is based on software called VitalSigns. It is not a rating scale; instead, it shows the average rate of a particular life insurance company based on the marks received by specialized agencies. This is useful if you want to take into account multiple assessments. You can request the ratings directly from the agencies or search for this information on the life insurance carrier’s website.

Transparency evokes trust, and at the end of the day, that is what insurers want you to experience. 

Life Insurance Companies: A Breakdown by Types

Have you noticed that the word “mutual” often is found in the name of an insurer (i.e., Mutual of Omaha, Northwestern Mutual, MassMutual, etc.)? Based on who owns the company, there are two main types: 

Mutual Held Company 

The policyholders own the mutual company. It means that the company belongs to the people who own its products. Policyholders share dividends if there are any. If you want to be insured by such a company, you must deal directly with their representative and can’t sign up for a life policy through a free agent. 

Stock-Held Company

A certain number of stockholders own the insurance company. Having a life insurance policy with such a company is not enough to own it. You would have to buy company stock additionally. Such companies are open to trade on stock exchanges.

Group Employee Insurance

One of the benefits businesses offer to their employees is group life insurance. It means the employer sponsors a life policy for those working for them. Is this the best life insurance? It probably isn’t, but it is an advantage you should be aware of when researching for a death benefit that will secure your family. 

Group insurance is mostly signed automatically, and the employee is spared medical exams and submitting documents individually. However, the coverage is often shallow and is far from providing a long-lasting replacement. Businesses can sign policies for their employees based on a flat rate. Each employee’s insurance has the same death benefit of about $10,000 to $25,000. The alternative is for the coverage to be a multiple of the employees’ salaries. For example, if you receive $50,000 annually, the death benefit could amount to $100,000. 

Group insurance policies differ, but if you are leaving the company, you might have the option to continue paying the premiums on your own and keep the insurance. That might be a sensible decision depending on your age, health condition, and amount of coverage. 

However, if you are young and healthy, it would be better to purchase life insurance on the individual market. Keeping the group employee insurance and buying a personal policy is also a valid option. Eighteen percent of insured people own only group life insurance, while 28 percent hold only individual coverage. Eleven percent have signed up for both individual and group life policies. 

Happy young couple taking financial advice at home

What is the procedure for signing up for an insurance policy?

  • We have already mentioned that the process of buying life insurance takes time. After all, you are looking for the best life insurance that is out there. 
  • The first step is to start seriously shopping. We might suggest that you are at this stage since you are reading this article.  
  • As a next step, get a life insurance quote from one or more companies. 
  • The last step involves signing up for your life insurance. 

Are you alone in this process? You could research on your own by checking companies’ websites, insurance aggregators, and insurance association websites. Most of the companies offer online tools to get an overview estimation of the cost of life insurance. Moreover, requesting a quote is as easy as it can get nowadays. 

However, we would recommend that you contact a financial professional to support you in the process. There are captive agents, free agents, and financial advisers. 

Financial Experts to Guide You

Captive Agents

Captive agents work for one particular company and offer only their own life insurance products. That will be your choice if you have decided on the insurer you would like to choose. Captive agents are familiar with the products they are offering in detail and can recognize your needs and priorities quickly to suggest the appropriate product.  

Free Agents 

They are consultants who receive a commission from the companies for every signed policy. They have a more comprehensive view of the market and the pallet of insurance offerings. Thus, this is your choice if you are still open to choosing a company and even a type of insurance. Free agents are informed and might suggest products you didn’t even know about or that are not publicly advertised. Keep in mind though that those free agents still are inclined to recommend some companies more than others because of the higher commission they would receive.

In both cases, once you have chosen your insurance, the agent will handle the sign-up procedure, which is quite an advantage. There are several trade organizations. Most of them provide a locator for independent agents close to you. For example, Independent Insurance Agents & Brokers of America is one option.

Financial Advisers

Finally, there are also financial advisers whose primary function is to give professional advice but not engage in signing deals. They are considered to be the most objective and willing to advise you based on your needs rather than financial gain. They also have the skills and education to consult you in any area of personal finances: investments, retirement plans, etc. Look for a Certified Financial Planner who works in your area. 

How much does the premium cost?

Almost 60 percent of Americans estimate that a $250,000 term life policy for a male aged 30 years in good health would cost $500 or more per year. In reality, the annual premium would amount to just $160. Thus, we can safely say that the price of life insurance is by far overestimated. While we cannot say it is always cheap, many factors influence the amount of the premiums.  

For starters, there is the type of insurance you choose. Term insurance policies tend to be considerably cheaper than permanent ones. The main difference is that with term insurance, there is quite the chance you won’t die within the designated period. Hence, life insurance carriers have less risk. Below there are some more explanations, advantages, and disadvantages of both types of insurances. 

Factors That Have an Impact on Your Premium

Age and Health Condition

Important factors that determine your monthly premium include your age and health condition. Typically, you sign up for life insurance when you are younger, in good health, and have a steady income. Dying is possible but does not appear to be likely any time soon. Therefore, it is less of a risk that the company will have to pay your beneficiaries the death benefit. However, if you are getting older, your health tends to deteriorate, so the premiums will increase. 

Bad Habits

Other criteria define the monthly payments’ size. One of the most critical factors contributing substantially to increased premiums is smoking. You might seriously contemplate quitting smoking before you sign up for life insurance. 

Occupation and Profession

The type of occupation you have could also influence the size of the premiums. If you have a risky profession, you should be prepared for a more diligent search for a company willing to offer you affordable premiums. Fishing, logging, construction work, farming, mining, and even driving a truck are considered industries with a higher rate of fatal injuries. 

The process of getting life insurance will include filling in a questionnaire and often undergoing a medical exam. For some companies, answering the survey is enough, especially if you are younger. This could also mean that you are assigned a slightly higher premium just because the insurer has no proof of your excellent medical condition. Be honest in answering the questions. Any hints of false information might result in the refusal of your application, or the insurer may offer a more expensive policy.  

Whole life or term insurance?

In 2019 customers continue to prefer term insurance policies before whole life ones (71 percent to 44 percent). What is the difference?

Term Life Insurance 

You can purchase a term life insurance policy for a specified period: 10, 20, or 30 years. These are the years when your children are still dependent on your income. You are also probably still paying for your house, and your savings have not yet reached a high level.

Typically, insurers expect that within this period, you will have paid for your home, and your children will be living on their own. You should have saved up some money for your greyer days and for arranging your final expenses too. Hence, there will be no need for life insurance anymore.

Whole Life Insurance

With whole life insurance, your beneficiaries are guaranteed to receive the death benefit. No matter when you die, or if you pass away before you reach 100 years of age, the insurer will pay your loved ones. Moreover, there is cash value they collect in time that results in a higher death benefit. The pros of this type of insurance are quite apparent; however, it also costs more. Therefore, it is less popular than term life insurance. If you opt for a permanent policy, there is also universal insurance. The difference between whole life insurance is that you can set up a flexible payment plan. The only requirement is that you cover the minimum to guarantee that your policy is still in force.

There are also other products on the market. For example, some insurance allows you to use living benefits. These policies place cash at your disposal in times of terminal illness and the need for long-term health care. 

What if your term is up?

Buying a term life insurance policy is the predominant product on the market. However, lifestyles have changed since the time this type of insurance was introduced to customers. It is possible that near the end of your policy term, you find yourself in a difficult situation. Your savings are not enough to cover the bills and the everyday needs of your partner in the event of your death. Or maybe your kids are still in need of your support due to the challenging economic situations and burdensome student loans. Or perhaps you have divorced and remarried in those 20 years and were taking care of young children again. 

Luckily, even if you are 55 years old and in relatively good health, you might receive a fair offer. For example, let’s say you get a 10-year term policy with $500,000 of coverage for about $1,151 per year (source: Kiplinger’s Personal Finance, 09/2018). Once your term starts getting closer, it comes time to shop for a new policy. 

Extension to Current Coverage

Some life insurance allows conversion, and it is smart to go for such an option. These policies will enable you to extend your current coverage rather than buy a new, more expensive one. This is an important feature to consider if you decided to go with a term policy. Be smart and ask if there is a time limit for renewing your insurance. You don’t want to miss it.

What happens if you get seriously sick and have to undergo lengthy medical treatment that doesn’t allow you to work? Some insurance will enable you to receive a certain amount of money from your coverage, which you can use for health care. That would lower the amount of your coverage, but it would provide money when you need the most. For example, you can receive $50,000 for medical treatment, which will reduce your death benefit payout by about $150,000 if your coverage amounts to $750,000.

Signing Up for the Best Life Insurance: What Comes Next?

Before sealing the deal with your life insurance company, you should make sure that you are aware of the premium payment plan and whether you can afford it. We are not only talking about your insurance policy but also possible changes in the amount due to the company’s state of affairs. Some life insurers’ policies are affected by companies’ investments or benefit claims. Inform yourself of the maximum premium you would be expected to pay and consider whether you could afford it.  

Choose Your Beneficiaries

The next step is to choose your beneficiaries. They are the person(s) who will receive the death benefit after you pass away. We do not advise that you select a minor child as your beneficiary since companies are not be inclined to pay the benefit to a minor child. The payment gets much more complicated when the beneficiary is a minor. 

Know Your Policy

Acquaint yourself thoroughly with your policy. Read it from cover to cover and be sure that you understand everything written there. If there is something you find unacceptable, there is usually a predefined period during which you can cancel your policy and get a refund. Most often, it is up to 10 days. Check the first page of the policy. The insurer should state the review period there. 

Visit Your Financial Advisor

Finally, even the best life insurance needs a regular reread from time to time. Ask your financial advisor or company representative to go through the policy. Check what changes have been introduced in the meantime. Maybe premiums or benefits have been subjected to review? What about your life situation? Would the death benefit still meet your needs? Has there been a significant life event such as a new child’s birth, divorce, or remarriage? Life insurance policies allow you to change your beneficiary for free. 

Best Life Insurance Company Overviews

Let us give you an overview of the ten most prominent U.S. life insurance companies by market share. At the end of this section, we will suggest a couple more companies that might not be within the top 10 but have excellent products and a trustworthy reputation.

MetLife Inc. 

Without question, the largest insurance company is MetLife, and they have some history. Founded in 1868, MetLife has worked hard to gain the trust of its consumers. It provides a significant range of insurance products, including annuities and auto, dental, and homeowners’ insurance, with their leading focus being life insurance. The company offers both term and permanent policies at very affordable rates. It is one of the first choices when it comes to group employee life insurance.

As of the beginning of 2019, the company’s financial strength ratings among agencies are high: A+ with A.M. Best, A.A.- with Fitch, Aa3 with Moody’s, and A.A.- with S&P. However, be prepared for a more complicated underwriting procedure with a strict exam policy. There is no option for getting a policy without a medical exam. If you are looking for a socially responsible company, MetLife has domestic and international educational and environmental programs to support sustainability and development.

Prudential Financial Inc.

It is not only that Prudential Financial is the closest to MetLife in terms of market share in the U.S., but it also holds sixth place in the world for 2019. Thus, you should consider this 140-year old company when researching the best life insurance. In Prudential’s portfolio, you can find some concrete underwriting proposals that are not offered on the mass market. If you are a smoker, you should check this company out first since it has a higher risk tolerance for tobacco users.

Whole life is not available; however, you could find suitable universal insurance policies. We would argue that the company explains the pros and cons in a very understandable chart. The company’s ratings are high, but a medical exam is necessary to go further with underwriting. The term life Insurance could have better conditions, though. Fortune magazine has just named Prudential as a changemaker for the second consecutive year for its investments with social impact. 

New York Life Insurance Group

Being within the top three in the U.S. is already saying something about New York Life. What is even more important is that the policyholders are highly satisfied with the way they are being served. Founded in 1845, the company has rating scores through the roof (A++ by A.M. Best, Aaa by Moody’s, AA+ by S&P, and AAA by Fitch). Term, whole, universal, and variable life insurance policies are on offer here, and there is special attention for people opting for their first underwriting. Since New York is a mutual company, it works only with captive agents.

If you want to get a life insurance quote from them, you will need to contact the company directly. You might consider New York Life if you are searching for a way to support diversity. The insurer has been nominated as one of America’s best employers for diversity by Forbes magazine.

Massachusetts Mutual Life Insurance Co. or MassMutual 

MassMutual is another dinosaur within the insurance business with a rich history and credibility over more than 160 years. You can feel entirely secure if you choose to underwrite with MassMutual. The company’s financial stability is tremendous, and its ratings are very promising.

Additionally, the company offers a great diversity of products from which to choose. Are you considering getting not only life insurance but other financial and insurance products as well? Save time and energy and look no further as MassMutual will probably have it available. As suggested by the name of the company, policyholders own the company. If you choose whole life insurance, you are eligible to vote in elections for the board of directors. As part of MassMutual’s corporate social responsibility efforts, its legal team supports various charities pro bono in its work for social justice.

Senior Couple Insurance Appication Form

American International Group (AIG)

AIG is also known as American General. It qualifies as another of the leading companies not only by market share but also due to good and steady ratings, financial strength, and proven reputation. If you choose AIG, you can rely on competitive life insurance rates. The company offers a solution to your financial situation, namely, $250,000 of term life insurance coverage for up to $160 per year. AIG’s products are a bit more complicated, and it would be best to consult with an expert before underwriting a policy. Climate change and sustainability are AIG’s leading corporate social responsibility goals. 

Lincoln National Corp.

Financial stability is not even a question for Lincoln National Corporation, also known as Lincoln Financial Group. A.M. Best, Moody’s, S&P and Fitch all give A scores to the company. Lincoln offers some of the most affordable premiums out there, and it has more than 100 years of history in the market. Like most of the companies listed here, customers can choose from an excellent product portfolio. Whole life insurance is lacking, however. Try the built-in calculator to estimate your needs when it comes to life insurance. Lincoln secures some of the best conditions for work for women and people with disabilities. 

Principal Financial Group Inc.

Principal scores A ratings among all the leading agencies. It was founded in 1879 as an insurance company. Today it provides a wide range of financial services to its clients. It offers a great variety of products with some significant innovations, like underwriting for higher coverage, in which no exam is required. Still, conditions are quite clear, and there is not a lot of room for flexibility left. Be prepared to pay a little bit more in premiums, but what you get is quality service.

Principal offers both permanent and term life insurance with short-term policies for one year. You will not get a lot of information from their website, so consider contacting an insurance agent or the company. Check out their retirement programs once you establish contact.

AXA Equitable Holdings

What started as Equitable Life Assurance in 1859 is now owned by the French brand AXA. A.M. Best, Moody’s, and S&P all rate AXA with at least an A score. The list of policies within the AXA portfolio includes term, whole, universal, variable, and survivorship life insurance. AXA is dedicated to contributing to children’s financial education by partnering with schools around the country. 


Transamerica is among the best life insurers on the market with four A ratings. Whole life, term life, universal life, and index universal life insurance are the types of policies you can choose. It takes some time to do your underwriting, and there is an obligatory medical exam. Besides life insurance, there are more programs to choose from.

Take a look if you are researching offers for your retirement. Clients have excellent feedback, so no worries in that area either. Take the time to get more educated in the so-called “Knowledge Place” on the Transamerica website. There is some useful information that could make the process of selecting life insurance easier. The company partners with different organizations and institutions to improve health care. Thus, if you are looking for a health insurance product, that is an excellent place to start.  

More Life Insurance Companies to Consider

As we have already said, the biggest companies on the market earn customers’ trust and have built a strong reputation. However, smaller life insurers are worth exploring if you are on the hunt for the best life insurance. Here are a few more corporations to consider. 

Haven Life

The first thing you should know about Haven Life is that it is a new player on the market. At the same time, it has MassMutual’s backing, so you shouldn’t be anxious about its financial strength. What is unique about Haven Life is that it offers a very simplified underwriting process. You do everything online, and the company makes decisions in no time. Premiums are within the lower levels of the market. However, there are limited products on offer.

We are looking forward to how Haven Life will develop, and hopefully, the company’s portfolio will grow. 

Legal&General America

Legal&General America, formerly known as Banner Life, is a lesser-known company with an A+ rating from A.M. Best. The parent company was founded in 1836 in London. What is unique about the company’s products is the flexibility in the underwriting. The term policies offer extensive options for riders and conversion possibilities. The payment schedule is flexible, and you can choose whether to pay monthly, quarterly, or annually. If your medical condition is not the best, Legal&America is considered a good alternative. 


Protective might be unfamiliar to you. However, it is a company with more than 100 years of experience and A scores from the four leading rating agencies. The variety of insurance policies is impressive, with prices that can suit almost everyone. Protective is another company that gives a choice between many riders and options for convertibility. 

Northwestern Mutual 

As the company’s name suggests, Northwestern Mutual is another mutual company, so it works only with captive agents. The opportunity for dividends comes with the focus on selling mainly whole life Insurance policies. However, the products are of high quality, possibly even some

of the best on the market. The offer of primarily permanent insurance results in a strict underwriting process and limited and expensive term policies. Thus, Northwestern is not the company to consider if your best life insurance choice will be term insurance. 

Mutual of Omaha

Mutual of Omaha was founded in 1909. It enjoys A ratings from A.M. Best, Moody’s, and S&P. The company offers term life, whole life, and universal life insurance policies. However, if you decided to get burial life insurance, Mutual of Omaha might be the right choice. The life insurance rates are quite competitive, the underwriting process is quick and easy, and products are available for a wider group of people. 

Future Trends and Ethical Questions

In recent decades, artificial intelligence and genetics have been hot topics in most areas of life. They influence the way we act, the products we purchase, and the services we acquire. There is also a considerable amount of work being taken over by A.I., not only in the physical labor sector but also in administration and clerical work. Mostly it stays unseen to the eyes of strangers. 

Game-Changing Algorithms

In the life insurance sector, algorithms are being introduced to the way insurance systems function. They analyze behavior in search of patterns and trends, thus defining risks and probabilities. When we talk about car insurance, this means monitoring driving skills, proneness to reckless actions on the road, and accidents. The safer we behave on the road, the lower the premium we would be estimated to pay. If this is applied to the life insurance niche, it means the healthier we live, the cheaper the premiums we pay. If you exercise regularly, have your medical check-ups on time, and engage in less risky activities, your coverage could rise while your monthly premiums decrease. This requires real-time monitoring and is already happening. 

Smarter Devices

An incentive that Manulife Financial Corp. has introduced is the use of Apple Watches and Fitbits for their customers. If you take enough steps each day or spend time meditating, you get points to exchange for purchases. The decrease in the premiums to be paid on your life insurance policy is even more critical. From the insurer’s point of view, this means the client lives healthier, and their life expectancy is higher. Thus, there is a lower risk of having to pay a death benefit. The mere act of agreeing to use such a device already suggests the customer prefers to avoid risks. This is the best type of client for an insurance company. 

On the other hand, there is the question of privacy. Are we getting closer to the dystopian scenario of Orwell’s 1984? How willing are we to be continuously monitored? Where is the limit in letting an artificial intelligence evaluate our every activity and determine a response?

Artificial Intelligence and the Insurance Business

With AI, genetics also plays a significant role in the way the insurance business functions. On the one hand, the trend is that genetic tests are becoming more affordable and accessible to everyone. On the other hand, we are facing the possibility of economic discrimination based on genetics. Let us illustrate our point of view.

Checking your genes might suggest that you are predisposed to get a terminal disease. It is not guaranteed, but the probability is higher. Ultimately, that is what life insurance providers are evaluating when signing up a policy with a client. Thus, a genetics check might lead to more expensive offers. This is not hypothetical. The companies have access to your medical files, and if you have done such tests, they can see the results. Your confirmation is required, but how often do you review what you agreed to when you accept terms and conditions? Is it fair to make someone pay more just because they are genetically disposed to certain diseases? 

Tell Us What You Think

We pose these questions to provoke some further thoughts and a more in-depth analysis of the topic. We hope that our extensive overview of the steps, criteria, and some companies in the life insurance sector has been useful. Tell us if you have already signed up for your best life insurance, or are you still searching? 

What is the most crucial factor you considered when signing up for your life policy?

Selecting the Best Travel Insurance for Your Next Trip

Whether you’re attending business conventions, vacationing to dream destinations, or embracing a modern, nomadic way of life, traveling has become an integral part of the average person’s lifestyle. When preparing for a trip, most people think about what to pack, what sites they will see, and what food they will eat. However, most people don’t stop to think about purchasing the best travel insurance for themselves.

With your U.S. passport, you can visit 116 countries without needing a visa. The United States came in 14th place in the 2019 Global Passport Ranking, while the United Arab Emirates currently holds the most powerful passport in the entire world. The other states in the top 15 are from Europe, except for Singapore and South Korea. 

Traveling is a privilege in global terms. It doesn’t matter whether you’re a part of a middle-class family household, an international businessperson, a young backpacker, a digital nomad, or a citizen of the world. Most likely, you can afford to travel away from home at least once a year.

The nature of a trip, the budget, and the destination might all differ from one journey to another. However, most of us share one thing in common. We need to feel a certain level of safety and security when we leave home. That’s where travel insurance plays a significant role. 

The Best Travel Insurance – Does It Even Exist?

The answer to that question is both “yes” and “no.” There is no such thing as a universal travel insurance policy that serves all purposes at the same time. The specifics of your journey and your risk proneness determine which insurance product will be the most adequate. 

This guide is designed to help you choose the best travel insurance for your specific needs. You will find explanations and clarifications of the following:

  • Essence and characteristics of travel insurance products
  • Underwriting process
  • Best travel insurance based on travel style
  • Leading travel insurance companies and their unique features

How Does Travel Insurance Work?

Like any other policy, a travel insurance plan is designed to save you money and lessen your worries in the case of unforeseen events happening during your trip. Often, these circumstances never occur, and the insurance coverage doesn’t kick in. In those cases, the product you end up buying is peace of mind. However, sometimes, situations arise where the smartest thing you can do is spend some cash on an insurance policy before embarking. Trip cancellation or medical emergencies can cost you a lot if you’re not covered. Luckily, you can get all or some of that money back from an insurance company, based on the amount of coverage you buy. 

Travel insurance is designed to serve two general purposes. Trip insurance protects the financial resources you use to book your trip. Medical coverage takes financial care of any emergencies that occur during your international travel. You can buy a plan that fulfills either one of those goals. Alternatively, you can purchase a comprehensive travel insurance policy. 

Three Types of Travel Insurance

Trip Insurance

This type of policy covers you financially for circumstances related to the trip itself. Maybe the travel company organizing your trip becomes bankrupt, or the government declares that your travel destination is unsafe. Perhaps a missed flight connection delays the start of your vacation, or a family member’s medical emergency interrupts your cruise. No need to worry, a trip insurance package protects you from trip cancellations, interruptions, and delays. You can even buy an insurance policy that protects your luggage and belongings if they get lost, stolen, or damaged. 

Travel Medical Insurance

Medical insurance plans work similarly to your health insurance but only apply when you are traveling. To file any claims, you have to be away from home. While annual health insurance plans cover most domestic emergency health care services, they rarely provide coverage abroad. In the case that you have a medical emergency during vacation, you can claim the expenses with your travel insurance policy. Travel insurance providers also offer different coverage for death, search and rescue missions, emergency medical evacuation, etc. However, travel medical insurance coverage doesn’t include regular check-ups or analysis.

Comprehensive Travel Insurance

Comprehensive insurance plans are package deals composed of policy coverage for both trip insurance and travel medical insurance. With some travel insurers, you can customize your plan by selecting different add-ons. Other providers have set plans from which you must choose. 

Variety of Travel Insurance Coverage

Here is a list of the most typical components of coverage offered in a travel insurance plan. 

Medical Assistance 

This policy can cover expenses related to emergency medical care services that you use during your travels. Each insurance plan offers different coverage limits, starting from a couple of thousand dollars and reaching up to millions. Since health care services in some countries abroad might be quite expensive, the minimum recommended coverage is $50,000. Depending on the insurance provider, you can file claims during the trip or once you’re back home. Keep in mind that pre-existing medical conditions might limit your options. Moreover, each provider has a list of situations that are not covered. Scuba diving, paragliding, and rock climbing are just a few examples of outdoor adventure activities that might not be covered by insurance.

Emergency Evacuation and Repatriation

If you fall seriously ill or there’s an accident in the middle of nowhere, insurance will cover medical evacuation to the nearest hospital with proper health care services. This policy can also cover the cost of bringing you back home in case there are no suitable treatments available. 

Accidental Death and Dismemberment

Known as AD&D coverage, insurance companies will cover the expense of bringing your body to your family if you die during your trip. You can also choose to be cremated or buried locally. Similarly to life insurance, the insurance company can also pay the policy to your beneficiaries. Coverage includes situations like losing a limb during the journey or within a specified time period after it. 

Trip Cancellation, Interruption, or Delay

Travel insurance is particularly valuable if your pricey trip gets canceled. Perhaps it’s hurricane season, the organizer goes out of business, or you experience a medical accident in the days before departure. Don’t confuse this coverage with the travel company’s refund policy. The latter depends on how much time before the starting date the cancellation occurs. The closer to the beginning, the less percent of the paid amount will be refunded. Even if the organizer offers cancellation insurance, you might think twice before signing up for it. If the business goes south, so does any insurance that they’ve underwritten. 

Check coverage limits carefully. Most insurers offer coverage of 100 percent of the trip price within a predetermined maximum. The same restriction applies to cases of trip interruption or delay. Causes for both could be family medical emergencies, delayed, missed, or canceled flights, or unexpected weather conditions. The policy might even cover the cost of return travel or overnight stays. Make sure you’re aware of the specific provider’s terms, which make your insurance valid. Finally, in the case of pre-existing medical conditions, the insurer can flat out refuse you coverage. 

Lost, Damaged, or Stolen Baggage or Personal Possessions

If the airline loses your luggage or you get robbed during your trip, insurance will cover costs within a specific time. Policies define limits with a daily rate and a maximum number of days. Every provider also requires that a minimum number of hours pass before baggage can be considered delayed. 

Cancel for Any Reason 

“Cancel for any reason” is an additional travel insurance coverage option that’s becoming more and more popular. It allows you to file claims to the insurance company if your work schedule changes, and you have to cancel a trip, even at the last minute. Maybe there is a severe storm in the region, and you rethink your trip entirely. However, be very careful with this clause and read the conditions thoroughly. The New York Department of Financial Services prohibits the use of CFAR since it considers the policyholder in control of the situation.

24-Hour Assistance

Most travel insurance companies offer a 24-hour assistance service with their plans. It provides support for missed flights and referrals to local hospitals, doctors, and dentists that speak English. The concierge service might even help you book dinner at a local restaurant. In case of a severe emergency, the coverage might help your relatives get a hold of you. The diversity of services included in global assistance varies from provider to provider, so be sure to read your policy in detail. Don’t miss out on those extra perks.

Rental Car Coverage

If you want to rent a car during your trip, make sure to check for policies with auto rental coverage. They typically cover the cost of a damaged vehicle but don’t cover third-party liabilities. Having such insurance may reduce the price of renting a car considerably. After all, the coverage offered by the rental company generally makes up a large portion of the daily fee. 

Do You Always Need Travel Insurance?

The answer is definitely, no. Each trip you take requires a different approach when it comes to insurance. Say you plan to visit a friend in another state. You buy a cheap flight ticket, book an Airbnb, and already have a running health insurance plan. You probably don’t need travel insurance. The same goes for a domestic road trip with no reservations. However, a fully organized cruise costing thousands of dollars screams for trip insurance. For example, it would cost you a lot of money if you got so sick that you needed a helicopter evacuation, and you didn’t have travel medical insurance. Backpackers might not need trip insurance since there are a lot of last-minute travel deals available to them. However, they should still consider medical coverage while abroad. 

How Much Does Travel Insurance Cost?

Generally speaking, travel insurance costs between 4 percent and 8 percent of the total cost of your trip. However, it’s up to you which coverage to sign up for and how much risk you’re willing to take. 

Several aspects determine the price of insurance. Since the amount that travel insurance companies pledge to pay depends on particular circumstances, they need to know how much your trip will cost. There’s also a daily rate, which makes the duration of your trip a significant factor. Finally, the destination plays a role too. Some countries cost more than others, and if you want add-ons or more extensive coverage, that increases the price as well. 

Since insurance is an individual product, some personal factors affect cost. In case of any pre-existing medical conditions, your coverage options may be limited. Furthermore, there will be specific conditions you have to meet to sign up for your policy. 

Finally, your age also influences the price. If you are 69 or older, you will have more difficulties finding insurance policies, and they will offer less coverage. 

Pre-Existing Insurance Benefits

Before you start calculating how much insurance will cost, you should check to see if you’re covered by insurance you already have. It probably won’t include all the features described above, but there might already be a policy in place, protecting you in certain situations. There’s no harm in checking, and it might save you some money. If you’re feeling business orientated, you might even calculate cheap combinations of insurances that serve your needs. Below are some common types of pre-existing insurance that might be useful for your travels.

Travel Credit Cards

A travel rewards credit card might already offer trip and luggage insurance. If so, sift through the policy. What are the coverage limits and conditions? Usually, travel credit card insurance only functions if you pay for it with the same card. Some providers require that all trip costs are paid for with their card, others request only some expenses. Typically, a travel credit card will have an annual fee and a lower than usual APR. 

Health Insurance Plan

Make sure you’re aware of your current health plan’s conditions. It’s rare to have a policy that covers medical expenses in foreign countries. However, if you are lucky enough to have insurance with one of those generous health insurance companies that offer coverage abroad, scrutinize the terms and conditions. Become familiar with their foreign provider network and policy regarding out-of-pocket expenses and co-insurance. 

Employer-Sponsored Health Plan

Though uncommon, there are a few companies that buy employee plans, which include travel insurance. Companies like Assist America have specialized in insuring membership groups such as students or employees. They include both medical and non-medical services as long as you travel more than 100 miles away from home.

Life Insurance

Accidental death and dismemberment coverage might be unnecessary if you already have life insurance that pays the policy to your beneficiaries. Having two insurance policies doesn’t mean that your relatives will get money from both. On the contrary, it might make dealing with paperwork more complicated. 

Home Insurance

Some home insurance products protect your belongings even outside of the house. Thus, buying coverage for stolen luggage or possessions would be redundant.

Auto Insurance

Usually, a car insurance policy is limited to the United States. Therefore, renting a car abroad won’t be covered. However, if you are traveling domestically, you might be able to avoid paying for car insurance twice. Just check the automobile insurance policy carefully. 


Some associations or clubs offer their members insurance policies for specific situations. Unlike traditional travel insurance, these policies are often limited to concrete activities such as diving, road assistance, or towing. However, if you plan to go scuba diving or to take a motorcycle road trip, this might be the best travel insurance for you. Here is a list of groups of which to consider becoming a member.

  • MedJet Assist — Air medical evacuation operating throughout the world
  • Divers Alert Network — Emergency evacuation insurance (also valid for non-diving trips)
  • Family Motor Coach Association — Travel assistance at a lower price
  • Gold Wing Road Riders Association — Towing and roadside assistance (only for motorcycles)
  • American Motorcycle Association — Towing and roadside assistance (available for most vehicles) 
  • American Alpine Club — Search and rescue coverage of up to $7,500 (not valid for marine activities)

Primary vs. Secondary Insurance

Insurance policies can apply as either primary or secondary. The secondary policy only functions if the primary insurance company rejects your claims or if the coverage is not enough to pay for all of the incurred costs. Here’s an example. You sign up for travel medical insurance, which serves as secondary insurance. Thus, your annual health plan is your primary medical insurance. If you have a medical emergency on a trip, the travel insurance company will ask you to provide an official rejection from your primary insurer. Only upon receipt of such proof will the travel insurance company pay your benefit.

Other Considerations

Below are some additional factors to consider before settling on an insurance type or provider.

Group Travel Insurance

If you are looking to score the cheapest possible option, you might want to consider a group policy as your best travel insurance. Usually, adding another adult to your plan, or even a kid, only doubles the price. Fortunately, there are travel insurance providers who offer discounts if you procure in numbers. If you’re planning a summer vacation with friends, ask for quotes for three or more people. Adding a fourth or fifth person might save you more money than buying separate plans with a cheaper policy. 

Single Trip, Multi-Trips, or Annual Insurance

If you only travel once a year, it is crystal clear that you should research single trip insurance options. However, with two or three trips a year, it might be worth it to shop around. Calculate the cost of separate policies for each trip and then compare that price with multi-trip insurance. You should also ask for one additional quote – for annual coverage. The best travel insurance might turn out to be precisely the latter. An annual policy could be cheaper than buying three or more individual policies. Additionally, for a slightly higher price, you might enjoy a wider variety of coverage and services to choose from. Finally, if traveling is in your DNA, then choosing annual insurance is a no-brainer.

Pre-Existing Medical Conditions

Typically, travel insurance companies refuse to provide coverage if you have pre-existing medical conditions. However, most insurers offer a pre-existing conditions waiver. To underwrite insurance, you have to follow the provider’s requirements. Typically, you have to buy the policy within 14 to 21 days of payment. You also need to be medically able to travel. The policy has to cover the full non-refundable cost.


In the insurance business, people over the age of 69 present a higher risk for the provider. Thus, there is a limited number of products designed for that group of citizens. What is more, the coverage will be considerably less extensive than a 40-year-old’s options, for example. GeoBlue, Allianz, and Silver Nomads provide some of the best travel insurance for seniors. GeoBlue insures people up to 84 years old. Through TripAssure, Seniors 70 or above can purchase a policy with Silver Nomads, a partner of World nomads. Allianz offers a variety of products for seniors, though at higher rates. 

When to Buy Insurance?

Most providers will allow you to book insurance up to a day before your trip starts. Waiting to purchase your insurance is fine as long as you are just buying travel medical insurance or looking to protect your luggage and belongings. However, if you plan to spend a considerable amount of money on a Costco travel deal, for example, trip insurance should be one of the top tasks on your to-do-list. Buying coverage for cancellations, delays, or trip interruptions works best if you do it as soon as possible. It reduces the risk of financial loss in case something happens that prevents you from going on your excursion. 

Approaching the insurance issue well in advance also gives you time to go over all the details of your policy and commit them to memory. Then you can share the essential information with your relatives. Finally, you can familiarize yourself with extra tools like apps or global assistance programs that the insurance company offers.

How to Buy Insurance?

Not only can you choose between companies and their plans but also the method you use to buy travel insurance. Here are the most common approaches. 

Insurance Company

Buying directly from the insurance provider allows you to communicate with the most competent people. Moreover, you get to explore all the different plans they offer and choose the one that fits best. What you should be very careful about is wording. A company that sells “travel protection” is not an insurance provider. The law is strict, but some sharks manage to get around it with creative writing. Such a company will probably reject your claim or even worse – disappear. 

Insurance Comparing Website

A couple of websites exist that do not serve as a direct insurance provider but save you time by providing multiple quotes. Input your personal information and travel data, and within seconds you’ll have a list with offers to compare to each other. InsureMyTrip and SquareMouth are two of the most popular ones. More than 20 respected insurance providers back their search engine. The drawbacks? You don’t see offers from other companies that may have better rates. Sometimes even plans from a partner insurer might be missing. 

Travel Company

Typically, travel companies offer insurance with their trip packages. The advantage of going with the organizer itself is that it’s quick and easy. You don’t have to browse through websites to get quotes and compare prices since everything is done for you. However, the drawback is that such travel insurance is rarely tailored to your personal needs and preferences. The variety of coverage is limited, often with no choice for add-ons. What’s worse is that if the organizer goes broke, the policy they have underwritten goes underwater with them. 

Flight Company

When you book a flight, you have the option to buy insurance in case of cancellations or delays. The best airline loyalty programs might offer it to their members for free. It’s certainly tempting to do so since it’s just a click away. However, it might end up costing you more if you also buy additional insurance for other parts of your trip. 

Best Travel Insurance Based on Your Trip

Buying the best travel insurance for you depends on the level of safety you need to feel and the type of trip you’re embarking on. The first one depends strictly on your personality and how prone to risk-taking you are. On the other hand, each type of journey has features that require specific protection measures. 


A cruise is a lovely way to travel and enjoy a vacation. You spend some time on a luxurious ship while also visiting fascinating places. The pleasure, though, has its price and it’s not cheap. If you have to cancel two days before departure, it’s unlikely you’ll get a refund. A cancellation refund is strictly dependant on the number of days before the trip starts. The closer it is to the cruise embarkment date, the less percentage you’ll receive if you have to cancel. You may even receive no refund at all. That is when you need substantial trip cancellation coverage. 

Delay or trip interruption insurance is also a good idea. Imagine if a delayed flight to the port causes you to miss the ship’s departure. Or you have to catch an expensive last-minute plane to go back home to your relatives in need.

Finally, you should consider the medical benefits. Although there is a physician on board, the medical services on a cruise can be quite high-priced. If you get sick, emergency medical evacuation is only possible with a helicopter. Explore insurance with higher coverage. 

Expensive Trips 

The insurance recommendations for a fancy international trip or a costly honeymoon, are similar to those for a cruise. With climate change, more extreme weather is bound to happen, and it gets harder to predict when and where dangerous conditions will occur. If you have even the smallest inclination of a flight cancelation or hurricane outburst, go with generous trip insurance. You might be eligible for a refund, but sometimes they come in the form of vouchers, which might not work for you. 

Long Travels 

Are you a digital nomad or the type to spend half a year roaming through exotic and unpopular destinations? If so, your primary concern should be related to medical insurance. What happens if you get sick during your international travels? Can you rely on the local health care system? If you’re spending considerable time abroad, it’s best to explore major medical insurance. They work similarly to national health care plans. Often, they offer access to a medical provider network, but there are a couple of things to take note of. Even outside of the U. S., you might have to hit the health insurance marketplace to enroll for a national plan. Coverage limits, deductibles, out-of-pocket expenses, and co-insurances apply to these plans as well, so take the time to understand all the crucial details.

Annual travel insurance might sound reasonable, but check the maximum period that you are allowed to spend traveling. It might not cover your entire 6-month journey. 

Active Vacations

If you need to experience a thrill to feel alive, emergency medical insurance that covers both evacuation and assistance is a must. If you are into really extreme sports, you might require AD&D coverage and search and rescue policy. Also, consider all the expensive gear you need to bring along. Purchase lost, stolen, or damaged luggage insurance to be on the safe side. Make sure that your coverage is valid for all the activities you plan to partake in. 

Family Trip

You’re looking for a plan that will allow you to cover kids for the same benefits, but with lower prices or even for free. You also need to consider travel medical insurance in case of nasty viruses and infections. If you are on a budget, it might be unwise to buy trip insurance that raises your costs even more. 

Frequent Travelers

With more than one trip per year, you should check options for multi-trip or annual insurance. It’ll make your life easier since you do the underwriting just once. As you deal with the same travel insurance provider over time, you will become familiar with their service and what to expect. 

Domestic Travelers

If you’re mainly traveling in the United States, you won’t need to possess travel medical or car-rental coverage. A national medical plan will cover you in most states. If not, check out some cheap health insurance options. Auto insurance protects and assists on the road (in most cases, even if you rent a car). Home insurance policies often insure personal belongings. It might be worth considering trip cancellation, delay, or interruption coverage. However, calculate how much it will cost you. It might not be worth spending additional money on what would otherwise be a relatively low-budget trip. 

Best Travel Insurance Providers for 2019

Now that you know what to look for, here are some of the leading insurers on the market. All of them have excellent financial ratings, assessed by A. M. Best with an A mark or above. Essentially, you won’t have any trouble getting your benefits paid. Ordered alphabetically, each company has the features to provide you with the best travel insurance out there. 

AIG Travel Guard

With more than 30 years in business, AIG Travel Guard is an excellent choice for travel insurance. The company offers three plans online, and you can request more offline. Their family coverage allows you to add kids under 17 to your plan at no extra cost. You do, however, need to sign the policy within 15 days of the initial payment to get a pre-existing conditions waiver. The company is not so strict about outdoor activities, and you can add evacuation and medical assistance coverage to your insurance plan. If you’re envisioning an active family vacation, AIG Travel Guard might offer the best travel insurance for you. 


If you’re looking for annual multi-trip travel insurance, Allianz is a suitable choice. There are four plans to choose from that are designed to suit all needs, from essential to business. The policy is valid for 365 days, though trips cannot be longer than 45 days. Most of the plans offer coverage per trip, but some features might be available until reaching a limit. A waiver for pre-existing conditions is available in some of the annual plans. Adding children to the plan, however, will double the price.

American Express Travel Insurance

Even if you’re not an American Express credit cardholder, you can still obtain coverage through American Express Travel Insurance. Four plans are available: Basic, Silver, Gold, and Platinum. The Silver and Gold plans offer medical protection for up to $25,000, which might be a bit risky in case something more costly happens. Their evacuation coverage is slightly better. If you’re not satisfied with the pre-existing plans, you can try the build-your-own coverage option and choose only the policies you need for your trip. Children pay the same price as adults. Interestingly, the journey duration doesn’t influence the cost of the policy, so if you’re looking at a long travel period, this might be the best option for you. However, keep in mind that medical and dental care is only covered within the first 60 days of the trip. 

Generali Global Assistance

As an international company, Generali Global Assistance offers a global network of medical providers and no out-of-pocket costs. There are three plans offered: Standard, Preferred, and Premium. No matter which one you choose, you receive beneficial perks such as 24-hour emergency assistance and concierge services. Available add-ons include rental car damage and cancel for any reason. If you need to cancel for any reason, they cover up to 75% of the cost insured. A pre-existing conditions waiver is only included in the Premium plan, though. All in all, Generali offers very generous medical and evacuation coverage, even with the basic plan, and is known for its excellent service and quick claim resolutions.


GeoBlue is a unique travel insurance provider because they only offer medical insurance. Their primary focus is on long-term travelers, expats, and students. Their plans function like major medical insurance with a network of physicians around the world and 24-hour phone, web, and mobile support. GeoBlue’s owner is an independent licensee of the Blue Cross Blue Shield Association. You can still obtain GeoBlue insurance even if you’re not currently enrolled in a Blue Cross or Blue Shield health plan. GeoBlue is an excellent option if you’re looking specifically for substantial medical coverage. For example, the single trip Voyager plan offers medical coverage starting from $50,000 to $1,000,000 with a fixed evacuation coverage of $500,000. 


One of the more long-standing companies, IMG, has been on the market since 1990. They offer 25 different insurance plans and specialize in providing niche insurance policies. They’re designed to answer the needs of groups, such as international students, but also specific members of the marine crew, volunteers, and missionaries. In case you’re expecting visitors from abroad, IMG has a very informative FAQ page. If you are into adventure sports, take the time to explore the IMG policies. They offer add-ons that raise the cost but cover you for even more extreme sports. Their evacuation coverage of $1,000,000 is one of the most significant ones out there, though it needs to be pre-approved by the company. 


Berkshire Hathaway Travel Insurance is the company that underwrites Travelex insurance policies. Fifty years of experience has taught the provider to offer their customers simplicity. Therefore, they have just two insurance plans: Travel Basic and Travel Select. The difference between them is the size of the coverage. If you are looking for less risk, the Select plan will give you $50,000 for medical expenses and $500,000 for emergency medical evacuation and repatriation.

Moreover, you can upgrade the policy with additional medical coverage and adventure sports coverage for any reason. With the Basic travel insurance plan, you can only add car rental collision and air AD&D coverage. Another exceptional feature of the Select plan is that the duration of a single trip can be covered up to 364 days, which exceeds the average in the insurance business by far. A pre-existing medical condition exclusion waiver can be signed if you purchase the plan between 15 (for the Basic) and 21 days (for the Select Plan) of the initial trip deposit. 

World Nomads

As suggested by its name, World Nomads targets mostly young people, adventurers, and active travelers. Their coverage is flexible, and you can upgrade while already on your trip. Moreover, World Nomads covers accidents that happen during adventure sports practicing, including more than 200 activities. Two plans are available: Standard and Explorer. The difference is mainly the coverage size, though both offer high medical and evacuation coverage. However, the Standard plan offers a shorter list of adventure sports and activities. Another unique World Nomad feature is that they’re committed to promoting sustainable travel and encourage donations to and support for local communities. 

The Bottom Line

The key to selecting the best travel insurance is to approach the topic with attention and personalization. Analyze the trip you are planning and what financial risks are most likely to happen. Then, explore insurance plans suiting your budget and needs. It doesn’t sound attractive to spend time comparing quotes and plans, but it all pays off in the end. 

Have you already found the best travel insurance provider? Do you have a story to tell about an unpredictable event that required you to rely on travel insurance? Share your stories, feedback, and recommendations in the comments.

Life Insurance Quotes: Looking Out For Loved Ones

While your inevitable demise might not be something you want to think about, the subject of life insurance deserves your time. Adults with a home, partner, kids, or any financial liabilities need to make sure they provide for the people they care about, should they die unexpectedly.

A study undertaken in 2018 revealed the fact that more than 40% of Americans don’t have any form of life insurance. Why is this percentage so high? Thinking about death can be bleak, but it might also be because life insurance can be complicated. 

Fortunately, life insurance doesn’t have to be confusing. With the right information, you’re able to make smart decisions and achieve a suitable outcome for your family. 

What is Life Insurance?

Life insurance provides for your family or partner should you die. The provision takes the form of a lump sum or regular income. 

There are three types of life insurance:

  • Term or pure life insurance – this type of insurance cover provides for your family for a specified time. Should you die within the policy term, they’ll receive a lump sum or regular income. Term insurance only has value if you die.  
  • Whole or permanent life insurance – the death benefit for this type of insurance has no expiry date. As long as you keep up with your premium, the policy remains active until you die. 
  • Convertible term life insurance – there’s an option to exchange a term or pure life insurance policy for permanent life insurance. There’s no underwriting process, and a medical exam isn’t required. However, it’s common for there to be a maximum age limit, often 65. 

There are also several variations of whole life insurance: universal life insurance and variable life insurance.  

Do You Need Life Insurance? 

Not everyone needs life insurance, but there are certain instances when it’s crucial. Is there someone who depends on you financially? If the answer is yes, you’re a prime candidate for life insurance. Here are some more examples of when life insurance is something to consider.

When you’re married

If you’re married, you don’t need to wait until you have children to think about life insurance. Consider what would happen if one of you passed away tomorrow. Would there be sufficient income for the surviving partner to pay off debts, cover the monthly rent or mortgage, and pay utility bills? 

When you’re married with children

For the majority of families, two incomes are required to cover all financial obligations. If one partner dies, the remaining family members might not be able to continue their standard of living on one income. If you arrange life insurance, expenses can be covered, and plans for the future remain unchanged.

If you’re a single parent

Being a single parent comes with a heavy burden of responsibility. Not only are you the chauffeur, caregiver, cook, and entertainer, you’re also the only breadwinner. To safeguard your children’s financial future, you should consider life insurance. 

If you’re a stay at home parent

You don’t have to earn a salary to make a financial contribution. Stay-at-homeparents perform a variety of crucial tasks. The replacement value of these tasks is significant and often underestimated.

When you’re retired

The proceeds of a life insurance plan can be used by your heirs to cover funeral expenses, taxes, and other debts.  

If you own a small business

Life insurance can also be used to protect your business. It could be used to fund a buy-sell agreement, for example. 

If you’re single

It’s not usual for a single person to require life insurance, but there are some exceptions. You might be providing financial support for your aging parents, or a sibling with special needs. You may have a significant amount of debt that you don’t want to pass on to your surviving family members. 

Prioritize These Benefits 

Now that you appreciate the importance of life insurance let’s consider what you need to look for when purchasing your policy. The options for life insurance companies and policies are extensive. Before you jump in and hand over any cash, perform your due diligence. Look for these six factors:

1. An Affordable Policy

When you reach the stage of asking for permanent or term life insurance quotes, you’ll suddenly become aware of the differences between the various policies and providers. The disparities are enormous, which makes weighing up the pros and cons of each policy crucial. Let’s consider one example. A death benefit for the whole of your life is a great benefit, but is permanent life insurance worth the extra expense?

Aim to choose a life insurance policy that’s affordable. That way, you’re more likely to keep on top of your life insurance premiums, even when times get a little tight.   

2. Pay-out Terms

There’s one type of life insurance that appears to be very attractive on the surface. You’ve all seen the TV adverts for quick and easy coverage. While it might be very tempting, consider the waiting period that’s often attached to this type of policy. You might have to wait two or even three years before you get a pay-out. 

A policy that pays out 100 percent on the first day is a far better choice. 

3. Underwriters

Various factors are taken into account when an insurance company works out your payments. It’s the underwriters that evaluate risks such as smoking, traveling outside the U.S., diabetes, and your family medical history. It’d be convenient if they all followed the same guidelines, but that’s often not the case.

It’s always best to speak with an independent insurance advisor. Let them look at the various companies and find one that best suits your situation. 

4. Automatic Payments as an Option

It’s essential to keep on top of your life insurance payments. Otherwise, your cover may get canceled, and there may be problems reinstating your policy. You might not be allowed to catch up on past payments. 

To avoid any missed or forgotten payments, look for an insurance provider that has the option of automatic payments from your checking account. 

5. Possibility of Conversion

Nobody can predict what’s going to happen in the future, but it helps if you’ve got some options. The capability to convert your term policy into a permanent one is an excellent feature to have. It generally requires no additional medical exam. If you’ve developed a medical condition since you originally purchased the first-term policy, conversion allows you to keep your coverage.

6. Living Benefits

Life insurance is a continually evolving sector of the insurance market. To meet current consumers’ needs, several insurance providers have introduced a new option. In some cases, it’s possible to receive payments if you become chronically ill or enter a care facility.

Being able to get cash out of your life insurance policy is a beneficial addition, should you get cancer or need end-of-life care, for example. Look for a company that offers this option.  

Getting a Quote Online

To get the right insurance deal, it’s always best to compare your options. To find the best rate, you first have to compare life insurance quotes from several different companies. You’ll find that prices vary considerably depending on the coverage you decide on and your personal details, such as gender and health.

A Checklist for Obtaining a Quote

You need to provide specific details when requesting life insurance quotes. Gather the information together before you start, and you’ll get a quote much quicker. Information that you might need includes the following:

  • Specific information relating to any medical conditions
  • General medical information, such as your weight, average height, cholesterol levels, and blood pressure
  • Your income and occupation
  • How much debt you have, for example, mortgage, auto loan, credit card, and student loan

Don’t Wait to Start the Process

It’s going to help if you start the application process when you’re still relatively healthy. Life expectancy is one of the things life insurance companies take into account when determining your rate. 

The smart thing to do is purchase life insurance cover as early as you can, preferably when you’re still young and healthy. Wait too long, and the quotes you receive will increase, simply because you’re older. Wait long enough for health issues to arise, and the quotes will be higher still.

Moreover, you shouldn’t let a health condition keep you from applying for life insurance. How a life insurance company views an existing condition varies. There are insurance companies that don’t even ask for a medical exam.   

15 Factors That Affect Your Premium and Cover

There’s no one size fits all when it comes to life insurance cover. Many factors are taken into account when a company works out the premium you have to pay. Some are within your control, while there are others you can’t do anything about. Your age, health, and smoking habits are three of the most prominent factors, but there are many others.

1. Age

If all other factors are equal, the younger you are, the lower the rate you can expect to pay. For this reason, it’s often recommended to purchase life insurance as early as possible. When you’re young, the risk of death is much lower. Therefore the rates are lower.  

2. Current health and health history

A medical exam is generally required. They look for issues such as high blood pressure and other health concerns that might indicate serious health problems in the future. If you’re currently healthy, you can expect to pay a lower premium.

Conversely, a history of health issues will likely make your rates higher.

3. Weight

Your weight can have a severe impact on your health. It can also put you more at risk for serious health issues. If you’re obese or overweight, it can affect the cost of your coverage.  

4. Occupation

Certain careers have an inherent risk of injury or untimely death. Take a car or motorcycle racer, for example. Other dangerous occupations include aircraft pilots, roofers, truck drivers, and steelworkers. If you have a risky job, your rates are likely to be increased, and they might deny you coverage altogether.  

5. Marital status

Being married doesn’t mean your insurance rates are going to be higher. Rather, it’s included in the list because you can save some costs if you purchase a life insurance policy with your partner. 

6. Whether you smoke

Despite the known risk factors that come with it, many people still smoke. Smoking increases the risk of cancer and other fatal diseases. Because life insurance is all about the risk of death, being a smoker automatically increases your coverage rates. 

7. Alcohol consumption

Another risky habit to have is drinking alcohol. How much alcohol you consume regularly is factored into your life insurance rates. Drink more, and you’ll pay more.

8. Hobbies and lifestyle

Do you participate in any high-risk hobbies, such as skydiving, motorcycle riding, skiing, snowboarding, or parachuting? If so, you’ll be paying more for your life insurance.  

9. Driving record

Do you have any driving violations on your license? You should aim to have as few of these as possible. Not only does it affect your auto insurance, but it’s also considered an indicator that you’re more at risk of accidents on the road. Having a few violations might result in higher insurance costs. 

10. Travel preferences

If you like to travel overseas, keep in mind that certain countries are considered a higher risk than others. How often you stay in these countries and for how long, can impact the cost of life insurance coverage.  

11. Family history

Insurance companies take into account more than your medical history. Your family’s medical history can also be a factor in determining the cost. Family members with serious, hereditary health issues can make the cost of coverage higher.

12. Gender

It doesn’t seem fair that your gender can affect the price, but unfortunately, it does. Statistics play a large part in determining risk, and statistically, men tend not to live as long as women. Consequently, women pay less than men for life insurance.

13. Purpose of purchasing insurance

Why are you buying life insurance? Is it because you want to provide and protect your family’s future? Is it part of your estate planning? Insurance rates can change according to the reason.  

14. Type of policy

The kind of policy you purchase, the term, and the level of cover all contribute to the rate you pay for insurance coverage. The longer the term, the more you’ll likely pay. A term life insurance policy is also cheaper than whole or permanent life insurance policies. 

15. Risk classification

When determining the cost of insurance coverage, underwriters generally place you in a specific risk category. Every company is different. Zander Insurance and Birla Sun Life Insurance might look similar on the surface, but the underlying risk classification could be completely different.  

Being aware of the overriding factors puts you in a position to do something about some of them. Your age, gender, and family history can’t be changed. However, you can alter many factors, such as your participation in risky activities, driving record, weight, and general health. Make the best decisions for your future, and it can positively affect the cost of life insurance.

There are also a few more ways you can increase your chances of bagging a lower price or better coverage, below.

Tips for Getting the Best Life Insurance Price and Coverage

Life insurance isn’t something you purchase regularly. Unlike travel insurance or mortgage insurance, there aren’t any opportunities to learn tricks along the way. For this reason, we’ve done the research for you! Here are some secrets regarding life insurance. 

Increased Coverage Might Mean a Lower Price

Much the same as buying in bulk entitles you to a discount; your insurer might be willing to lower the price if you ask for a higher level of coverage. Insurance companies tend to have thresholds or bands. Price breaks are available at specific levels. 

Do-it-Yourself vs. an Independent Agent

You can look for the best life insurance company yourself, and if you’re in good health, there’s no reason why you shouldn’t. However, anyone in a high-risk group might be better off seeking independent advice. An independent agent will shop around for you and be able to find an insurance company that’s more lenient than others. 

Add a Chronic Illness Rider

A rider is an extra that you attach to your policy. If you find an insurer that adds a chronic illness rider at no charge, you should choose it. Adding this extra means you’ll be able to access your death benefit earlier, should you be diagnosed with a chronic illness. 

Send Payment with Your Application

The life insurance application process is long-winded, and it can take several weeks before your cover is active. Immediate cover is possible if you send in payment for the first month’s cover with your application. When you’re filling out the application form, look for “temporary life insurance receipt.” This will include the terms and conditions for temporary cover, which usually involves making a payment in advance.

Life Insurance Exclusions

A life insurance policy is a contract between you and your life insurers. The devil is in the details, and you should make sure you’re aware of any exclusions. Pre-existing medical conditions are one example. Another is a self-inflicted injury. The beneficiary of your life cover won’t receive anything if these cases apply to the insured person. With regards to life insurance taken out by a small business owner, it can’t be used to reclaim or cover any start-up costs. A sane or insane clause is something else to look out for.  

Extra Perks

It pays to look out for any additional perks insurers might be offering. There might be extra insurance cover on offer. Zander Insurance and the Zander Identity Theft Insurance is one such example. 

Making a Life Insurance Claim

Making a claim is not something you’re going to need to worry about. However, knowing the process means you can help your family understand what they’ll need to do. 

The first step is to contact the life insurance company and let them know you want to make a claim. You’ll need to give personal details of the person covered under the policy. Let your loved ones know where you keep your policy and what it covers.

Companies often have clear and specific processes in place to help with a claim. One excellent example is the AFLAC Smartclaim system.  

Your beneficiaries will need to provide specific documentation with a claim, including a:

  • Death certificate
  • Completed claim form
  • Policy document

A pay-out doesn’t generally take too long to be processed. Typically, it takes around one month, but sometimes it’s much quicker.

Coverage can be costly, but it’s also possible for you to find an insurance provider willing to provide the necessary cover at an affordable price. At the end of the day, knowing your family is going to be comfortable when you’re gone is priceless.

Have you been looking for a life policy recently? Did you manage to find a deal that suited your needs and bank balance? What was your experience of requesting a quote, and did you feel pressured into making a deal? Please take a few moments to leave us some comments. 

Top Secrets & Tricks to Getting Medical Travel Insurance

According to the US Department of Commerce, International Trade Administration, National Travel and Tourism Office (NTTO), in 2018, a record of 47.8 million Americans traveled overseas. Going on vacation abroad is the perfect opportunity to make memories with loved ones, experience other cultures, and take a break from your busy home life. But what happens if your dream trip turns into a nightmare? If you, or a member of your party, becomes ill and requires medical treatment, it is unlikely that your health insurance will cover you overseas. And, with the cost of medical bills rising and a crackdown to make sure foreign travelers pay for their care abroad, medical travel insurance can save you from financial disaster. 

Staggeringly, only 69% of Americans who took part in a travel survey by AAA think medical travel insurance is a priority. If you want to understand more about the types of travel insurance coverage, continue reading for some helpful facts about medical travel insurance and a list of some of the best policies out there.

The benefits of emergency medical travel insurance


In addition to saving you thousands of dollars on overseas medical care, medical travel insurance can provide coverage for repatriation (return transportation) if you need to return home. The cost of being airlifted or onboard medical equipment is expensive, and the price increases the further you are away from home. You may also be able to receive coverage for your remains if tragedy should strike, taking the pressure off your loved ones.

Flights for a loved one to assist you abroad

Loved ones often feel the stress if you get sick or injured overseas. Medical travel insurance can also provide compensation to allow a member of your family to join you at your destination while you remain in the hospital. You can also receive financial help for flights if members of your party need to return home.

24-hour assistance

The best medical travel policies include 24-hour assistance and have multi-lingual operators to support you if you need any of the following:

  • Information on immunizations
  • Locating the nearest medical facilities
  • Support from medical experts on healthcare in a foreign country
  • Relay information to your physician back home
  • Assist in the replacement of lost medical equipment while you are abroad

The three main types of travel insurance

Ensuring you have the correct type of coverage is just as important as the right level of coverage. Here is a brief overview of the types of travel insurance you should have when traveling abroad.

Trip cancellation insurance

This type of coverage will protect your trip in the event of cancellation due to unforeseen circumstances. There can be many reasons why vacations are canceled, for example, flight delays, hotel problems, or health problems. Trip cancellation insurance does not generally cover any medical care you need. Some policies cover the cost of your trip if you have to cancel for bereavements or sick travelers. You need to check your policy carefully to find out the level of coverage and any exclusions.

Travel health insurance

This is the correct policy to ensure that you are covered for any health-related problems while you are abroad. If you are sick or injured abroad and need to use medical services, you will be asked to pay upfront for any medical care. Paying upfront is still the case if the country you are visiting has a nationalized health care service. Your medical travel insurance will ensure you are reimbursed or will pay on your behalf if you have the right protection.

Medical evacuation insurance

This covers if you become seriously ill, have a significant accident, or are traveling to a remote location with poor hospital care. Medical evacuation (medevac) insurance covers you for repatriation to the US for better care and treatment. The cost of coverage varies greatly, and this option is not always part of your travel medical insurance. Although there may be an option to add it to your policy.

When travel medical insurance is required

Some countries require visitors to have adequate insurance before they enter the country.

Currently, the following listed countries are on the state department’s website:

  • Antarctica: Due to the high cost of medical evacuation and hospitalization, all visitors must have their travel insurance which covers medical expenses.
  • Countries covered by the Schengen visa: The 26 European countries that allow travel between them without border controls.
  • Cuba: US citizens must show proof of their travel medical insurance before they are granted entry to the country.
  • Ecuador: All visitors to Ecuador and the Galapagos Islands must show proof of travel medical insurance to gain entry.
  • United Arab Emirates: Anyone planning to stay more than 30 days is required to have medical insurance for their travels. Anyone traveling for less than this period does not have to show proof before entry.

Depending on your citizenship and length of stay, the country you are traveling to may require other arrangements. To stay up to date, visit the State Department’s website.

A small price to pay for financial security

What is the average cost of medical travel insurance?

The price of medical travel insurance will vary from trip to trip and person to person. A lot of travel websites will try to tell you an average cost of travel insurance, but we feel this is terrible advice. There are a lot of factors that go into pricing an insurance policy, and it all comes down to risk. For example, if you are a lone traveler, mid 30’s, no pre-existing conditions, traveling to Europe for sightseeing; you’re seen as less risky than an 80-year-old couple, with heart problems, going to the alps for a ski vacation. Statistically, the second example would result in an insurance claim because there is a higher risk of medical bills. To help cover their losses, insurance companies will increase premiums, the higher the risk you represent.

We did some research based on a person with no pre-existing conditions and found out that the policy price range was $7 – $200. The cost of medevac insurance was around $100. So, what’s stopping you from purchasing something that will save you money on your next trip?

I want to purchase medical travel insurance, what’s next?

The next step you should take is deciding which policy to purchase. Depending on your circumstances, pre-existing medical history, and duration of your trip, each insurance company will provide you with a quote for coverage. Quotes are usually saved for up to 30 days as prices fluctuate each day.

When you are providing your information for a quote, make sure you keep everything the same for each insurer for comparable rates. Be honest about any pre-existing conditions any party member may have.

The importance of being honest with your insurer

Adding pre-existing conditions to your medical coverage will increase your premium. However, if you’re considering misinforming your insurance provider, you may want to think again. If the time comes where you must make a claim, your insurance provider will need all the relevant information from the medical center who is treating you. If it comes to light that you had a previous medical condition and you have not paid the right premium, the insurance company may not pay out. Leaving you out of pocket and at risk of being charged with committing fraud, leaving you with a criminal record.

If you’re unsure what a pre-existing condition is, here is a list of some of the most common conditions:

  • Diabetes
  • Heart conditions (angina, cardiomyopathy, etc.)
  • Breathing conditions (asthma, COPD, etc.)
  • Mental or physical disabilities (including depression and anxiety)
  • Blood conditions (high cholesterol, high/low blood pressure)
  • Neurological conditions (epilepsy, stroke, etc.)
  • Any treatment relating to cancer within the last five years
  • Any conditions concerning hospital stays/surgery within the previous 12 months
  • HIV
  • Allergies
  • Hernias
  • Gallstones

By declaring your conditions, you are protecting yourself from a hefty bill or fine. If you are unsure if you should state a medical condition, you should contact the insurer for their advice. Each insurer will have different terms and conditions concerning their coverage, so it is best to be informed by the experts.

The best medical travel insurance policies for your needs

Researching medical insurance can be confusing, time-consuming, and easy to leave until the last minute. To save you some time, we’ve created an overview of some of the best medical travel plans based on different travelers’ requirements.

Best for frequent fliers

Insurer: Allianz


Recommended plan: AllTrips Premier

What’s included

  • Coverage: Annual plan
  • Trip cancellation: $2,000
  • Trip interruption: $2,000 of the unused, non-refundable part of your trip and any increase in the transportation costs you must take to return home for any covered reason.
  • Emergency medical: $50,000 for losses on covered medical or dental emergencies during your trip.
  • Emergency medical transportation: $500,000 for transport to the nearest hospital or facility.
  • Baggage loss/damage: $2,000 for the loss, theft, or damage of baggage and personal items.
  • Baggage delay: $2,000 for the delay of baggage over 24 hours and any purchases for essential items during this time.
  • Rental car damage and theft: $45,000 in the result of an accident or theft of the vehicle (not available in all states).
  • Travel accident coverage: $50,000 cash payment for losses due to death, loss of limbs, or sight if caused by a travel accident.
  • 24-hour assistance: Yes
  • Concierge: Personalized information on your destination, make reservations at restaurants, book tickets to events, and more.
  • Pre-existing medical conditions: Your plan may waive the exclusion for pre-existing medical conditions or provide additional coverage based on your criteria. Speak to Allianz for individual advice.

Why we chose this plan

With all-year-round coverage, Allianz AllTrips Premier covers multiple trips throughout the year. The additional upgrade to the emergency evacuation coverage allows for up to $1,000,000, so you can rest easy. This policy covers children under 17 for free, which can otherwise add a lot more onto a policy premium if you have multiple children.

Please visit the website for further coverage options and benefits. Allianz also offers other plans which may be more suited to your needs.

Suggested Reading: The 5 Home Insurance Reviews You Need to Know

Happy couple putting suitcases into a trunk.

Best for bargain hunters

Insurer: Seven Corners


Recommended plan: Liaison Travel Choice

What’s included

  • Coverage: 5 days to 364 days
  • Schengen Visa: Eligible if you choose at least $50,000 medical maximum and a $0 deductible.
  • Emergency medical maximum if aged 14 days – 69 years: choose from $50,000, $100,000, $500,000, $1,000,000, $2,000,000, $5,000,000.
  • Emergency medical maximum if aged 70 – 79 years: choose from $50,000 or $100,000.
  • Medical maximum for emergencies if aged 80+ years: $15,000
  • Emergency medical transportation to nearest hospital: $10,000
  • Emergency medical evacuation and repatriation: $500,000
  • Accidental death and dismemberment (AD&D): Yes
  • Trip interruption: $5,000 of the unused, non-refundable part of your trip and any increase in the transportation costs you must take to return home for any covered reason.
  • Pre-existing medical conditions: $50,000/$10,000 depending on age and terms and conditions.
  • Baggage loss/damage: $50 per article

Why we chose this plan

Seven corners provide ample coverage for medical emergencies and evacuation for as little as $7 per policy. With the added value such as trip interruption and loss of baggage, we think this is a winner for anyone on a budget.

Please visit the website for further coverage options and benefits. Seven corners also offer other plans within the Liaison Travel Medical category, which may be more suited to your needs.

Best for families

Insurer: Travelex


Recommended plan: Travel Select

What’s included

  • Coverage: Single trip
  • Bonus: Addition of children under 17 to the policy at no extra cost.
  • Emergency medical: $50,000
  • Emergency medical evacuation and repatriation: $500,000
  • Accidental death and dismemberment (AD&D): $25,000
  • Trip interruption: 150% of the cost of the trip
  • Trip cancellation: 100% of the cost of the trip
  • Pre-existing medical conditions: waived if insurance purchased within 21 days of initial trip deposit.
  • Baggage loss/damage: $1,000

Why we chose this policy

Children up to the age of 17 are covered for free, which is a big bonus for families. We also appreciate the pre-existing medical conditions terms and find them to be fairly reasonable compared to most policies.

Please visit the website for further coverage options and benefits. Travelex also offers other plans which may be more suited to your needs.

Best for extreme sports enthusiasts and adventurers

Insurer: IMG


Recommended plan: iTravelInsured LX

What’s included

  • Max trip: 90 days
  • Emergency medical: $500,000
  • Emergency medical evacuation and repatriation: $1,000,000
  • Accidental death and dismemberment (AD&D): $100,000
  • Search & Rescue: $10,000
  • Trip interruption: 150% of the cost of the trip
  • Trip cancellation: up to $100,000
  • Pre-existing medical conditions: waived if insurance purchased within 24 hours of final trip payment
  • Baggage loss/damage: $2,500
  • Please visit the website for further coverage options and benefits. IMG also offers other plans which may be more suited to your needs.

Why we chose this policy

The addition of up to $1,000,000 in evacuation costs is perfect for adventurous travelers who are stuck far away from a medical facility. You also have a higher risk of serious injury so that this coverage will be enough for evacuation back home. The addition of $10,000 in search and rescue costs is also unique, and we feel it would benefit most thrill-seekers who may venture off the beaten track.

Best for solo travelers

Insurer: John Hancock


Recommended plan: Silver Plan

What’s included

  • Max trip: 90 days
  • Emergency medical: $500,000
  • Emergency medical evacuation and repatriation: $500,000
  • Accidental death and dismemberment (AD&D): $100,000
  • Trip interruption: 150% of the cost of the trip
  • Trip cancellation: 100% of the cost of the trip
  • Pre-existing medical conditions: 60 days look back, 14-day waiver if within terms and conditions
  • Baggage loss/damage: $1,000

Why we chose this policy

Unlike most medical insurers, John Hancock has a high-value emergency medical coverage section. The offering of no deductions is also a peace of mind for lone travelers who may not have as many available funds as those who travel with others.

Please visit the website for further coverage options and benefits. John Hancock also offers other plans which may be more suited to your needs.

Best for students

Insurer: IMG


Recommended plan: Student Health Advantage Platinum International

What’s included

  • Max trip: annually renewable
  • Emergency medical: $1,000,000
  • Local ambulance: $750 per illness
  • Dental: up to $500
  • Emergency medical evacuation and repatriation: $500,000
  • Accidental death and dismemberment (AD&D): $25,000
  • Pre-existing medical conditions: charges excluded until after six months of continuous coverage.

Additional coverage: 

  • Coinsurance
  • Maternity and newborn care
  • Intensive care
  • Mental health
  • Prescription drugs
  • And more

Why we chose this policy

Although the majority of coverage looks like most travel insurance, the additional coverage covers plenty of situations you might find yourself in throughout your studies. The $1,000,000 limit for emergency medicine is also very generous.

Please visit the website for further coverage options and benefits. IMG also offers other plans which may be more suited to your needs.

Best for pre-existing conditions and pregnant travelers

Insurer: GeoBlue


Recommended plan: Voyager Choice 

What’s included

  • Max trip: 182 days
  • Emergency medical: $50,000, $100,000, $500,000 or $1,000,000
  • Emergency medical evacuation and repatriation: $500,000
  • Accidental death and dismemberment (AD&D): $50,000
  • Dental: $500 injury, $250 pain relief

Additional coverage:

  • Complications of pregnancy
  • Terrorism
  • 24-hour assistance
  • Trip interruption: $500 return air only
  • Pre-existing medical conditions: covered (no lookback period)
  • Baggage loss/damage: $100 per bag

Why we chose this policy

Pregnancy can be a difficult thing for any mother, and if something goes wrong at home, it’s scary. The thought of something happening while you’re abroad is even worse. The additional complications of pregnancy coverage will bring peace of mind to any family-to-be. This policy is also one of the only ones that cover pre-existing medical conditions without any lookback period. It’s worth looking into if you fall into one of these categories.

Please visit the website for further coverage options and benefits. GeoBlue also offers other plans which may be more suited to your needs.

Best for Seniors

Insurer: GeoBlue


Recommended plan: Voyager Choice 

What’s included

This coverage information is the same as above but includes the following benefits for senior travelers:

  • Pre-existing conditions covered for medical services and evacuation
  • Insurance coverage for anyone up to 85 years
  • Coverage amounts do not drop at age limit intervals like most plans

Why we chose this policy

Seniors often get a rough deal when it comes to insurance policies, but GeoBlue insures anyone up to the age of 85, no questions asked. Their pre-existing conditions coverage is also second to none. On top of that, the amount of coverage does not decrease with age.

The best travel insurance comparison website

Choosing travel insurance is a mammoth task. You need to make sure you have the correct amount of coverage for each member of your party who is traveling. If you don’t get it right, you could end up with a hefty medical bill.

We’ve shown you the best medical coverage based on category, but what if you don’t fit into one of those or you want help making up your mind? Use a price comparison website. is a great website that allows you to filter travel insurance policies based on your requirements. Choose your preferred plan type and coverage options, and the site will automatically populate results from its partners.

One thing to remember about price comparison websites is that they don’t always include all insurers. If the insurer you want is not there, go directly to their website for an individual quote. Sometimes this can save you money as price comparison websites can add commission onto the premiums.  

Things to remember before you travel

Asian family are planning to around the world. the image focus plane was carrying a child.

Taking the time to plan your vacation carefully will help prevent any unwanted mishaps along the way. Here is a handy checklist to help you stay organized and enjoy a smooth trip without any hiccups.

What to do before you travel

#1: Check your domestic health insurance policy to check what exclusions there are overseas. Confirming your coverage will help you determine how much protection and what conditions your travel medical insurance policy should cover.

#2: Purchase your travel health insurance coverage honestly and inform your insurer of any pre-existing conditions. By providing the correct information, you will prevent any denial of coverage.

#3: Check the area and region where you are visiting for their local medical services. Then, when you have an emergency, you will be better prepared for the trip to a local doctor or ER department.

#4: Contact your travel medical insurer and ask them to confirm that the policy will cover you in the area you are visiting.

Questions you must ask yourself when selecting an insurance policy

If you’ve read our brief list of insurance providers, you’ll notice that each plan offers different coverage. Plus, they will suit different people based on their needs. It is so important to check the terms and conditions of your policy to make sure it is the right one for you.

  • Does the insurance provide enough coverage for emergency medical care?
  • Is evacuation included?
  • Can I receive compensation for any travel and accommodation costs for family members if I get sick or injured?
  • Is there a 24-hour helpline if I should need emergency assistance?
  • Do I have sufficient coverage for every person insured on the policy?
  • Does this insurance cover the country and area I am visiting?
  • Will this policy cover my pre-existing medical conditions?
  • Do I need additional coverage if I am taking part in adventure activities?

Items to take while you are traveling

Getting to your journey isn’t the end of where your super organizational skills are needed. To be best prepared for any outcome, it is best to follow the following tips:

Keep your insurance documents on you at all times.

A lot of vacationers take excursions, which can be miles away from their hotel. To combat stress in an emergency, carrying your documents may save precious time when you need to contact medical help.

Keep emergency contact details of your insurers and their claim number separate.

By writing these details on a piece of paper and inserting them into your wallet, you save the need to look through paperwork hunting for the number.

Keep any receipts and invoices you receive from medical providers.

These receipts are for proof if your insurance company requests them when you return home.

More Resources

Why not check out our other travel guides to save you even more money on your vacation?

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Last-minute travel deals

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Cheap health insurance

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Best dental insurance

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Affordable dental insurance

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Life insurance

In life, we insure our cars, homes, vacations, and our pets, but we often forget about the most important thing. Ourselves. If you want to become one of the many Americans making sure their family remains financially secure; read our Life Insurance 101 guide.

Car insurance

Keep your vehicle on the open road with our simple guide to car insurance. Learn what a car insurance policy is and how it can protect you and your wallet more than you thought!

Home Insurance Companies: How to Pick The Best One

Trust us: you need homeowners’ insurance. Here are some common complaints you hear about property damages: 

  • “My house was destroyed by a tornado.”
  • “The flood damaged my household.”
  • “My home was hit by lightning.”
  • “I lost my roof due to the hurricane.”

Most of the time, you don’t worry after hearing these stories because these disasters don’t take place where you live, or they may be not even true! 

  • “I lost everything because a fire broke out in my apartment.” 
  • “The thieves took my watch collection, TV, laptop, jewelry, tools — everything. Even my personal belongings.”  

What do you think? Sounds more realistic, right? 

You can hear such statements anywhere (even in your neighborhood), not just on the news. So, if one of these calamities happened to you, how would you feel? Let me paint two different pictures of your potential emotional state while experiencing such a tragedy.

Piece of My Mind or Peace of Mind? 

These two phrases are entirely different from each other. They require two different approaches to life. One of them is approaching life as an adventure; the other one is seeking security. One cares about today, and the other cares about tomorrow.

Neither is better than the other, just different. 

The truth is, you never know what can happen tomorrow. Something can come up from nowhere just as easily as nothing can happen for several years. You can choose to live without homeowners’ insurance if you want to roll the dice. 

Have You Ever Imagined Life Without Homeowners’ Insurance? 

“A tree fell onto the roof of my house and caused enormous damage. A new roof will cost me $4,000. I don’t know how to pay for it. My savings are reserved for my son’s education. I feel destroyed and don’t know how to tell my son that I don’t have the money to pay for college.” 

“An earthquake caused $50,000 worth of damage to our house two years ago. When it happened, my friend opened his doors, so we had a place to live while we repair the house. However, we haven’t been able to afford to finish all the work yet. We are still living with them, which is, honestly, uncomfortable for everyone. I feel miserable and exposed.”  

How About With Homeowners’ Insurance? 

‘We lost our house last year in a fire. We felt overwhelmed because of the loss and all the work we put into the house. It was a tough period because all our plans for the following months ended up in smoke (literally). The good news, however, is that we went to a hotel during the repair process. The home insurance company refunded all our costs, including reparation and additional living expenses. We made the best of our weeks-long hotel stay ← we treated it like a second honeymoon! But, I can’t deny how happy we were to get back to our restored home once it was finished.”

In the first case, you probably would like to give to the universe a piece of your mind about that shameful episode that caused such frustrations and loss in your life. In the second case, you can enjoy peace of mind.  

Need Further Convincing?

Statistics regarding household damages speak for themselves, and the ways problems can occur are alarming.

From burglary to fire, vandalism, hurricane, lightning, theft, earthquake, and flood, plenty of bad things can happen to our house, and we can neither predict nor prevent what will go wrong in most cases. The exception being incidents that occur due to the homeowner’s mistakes or neglect.

Did you know that 18,000 Americans die in household accidents every year? Did you know that more than 3.4 million children get injured at home every year? There is a broad range of reasons that include falls, burns, poisoning, suffocation, unsafe storage of medications, and many more. You can prevent these kinds of unfortunate events by taking certain precautions, but what about accidents or disasters that happen out of your control? 


Did you know that 2.5 million burglaries take place in the United States every year, according to Protect America? Did you also know that, from this amount, 66 percent are home break-ins? You shouldn’t be surprised about this figure since theft is the most common crime type in the world. See what else the Insurance Information Institute suggests about home invasions. 

Water Damage

Water damage is so typical that almost every home is expected to experience at least one water issue in its lifetime. It can occur for several different reasons, including natural disasters or a plumbing failure. Water damage statistics say that home insurance companies receive more and more water damage claims from their customers than any other. 


Damage from a fire is also widespread among household claims. According to the National Fire Protection Association, a fire department was ready to respond to a fire every 24 seconds in 2017. 


Do you believe that your home never will get struck by lightning? You are probably right, as it’s extremely rare, but still, take a look at the statistics. According to the National Weather Service, from 2009 to 2018, 27 people died from lightning strikes in the U. S. If your house is struck, the biggest concern is fire, and your homeowners’ insurance will likely cover it.  

To Insure or Not Insure?

So, we explained that you have two alternatives, but only one of them can be the winner. If you have a family, responsibilities, properties, or you are a homeowner who loves their home and doesn’t want to lose it, make the right choice, and insure your home. 

But what if you don’t think you can afford to pay the premium of the insurance? Fortunately, many casualty insurance companies offer a variety of options to provide insurance coverage on your properties at a reasonable price. 

We put together a list containing the best home insurance companies so that you can have the most prominent names in your mind. But we’re not stopping there!

We are aware of how complicated it is to pick the best fit. That’s why we have gathered all the relevant features you would need to know if you are shopping for an insurance provider for your property. 

But before delving into our subject seriously, let’s take a glance at the meaning of home insurance and other related points you should be familiar with.

The 7 Things You Must Know Before Choosing a Homeowners’ Insurance Company 

Home insurance is a multi-risk insurance product that meets all the needs related to home protection, and it was created to protect one’s family and property from any calamity. Providers usually supply property and casualty insurance.

In the event of property damage, you can file a claim to your insurance company; they will send an adjuster to come and personally examine your request, and if approved, the company will pay for your losses.  

Home insurance providers also provide liability insurance in case of personal injuries of third parties on your property. 

Types of Coverage Provided by Homeowners’ Insurance Companies

All this insurance talk seems complicated, but actually, it can be simplified in this way:

Your homeowner’s insurance must provide three chief areas to cover your loss or liability related to your asset. 

The first is your home’s physical structure, which is known as dwelling coverage. This includes electrical wiring, plumbing, central air, and the heating system. These are considered” open perils,” which means the property is covered from all causes except those that are specifically excluded from your policy. The second coverage is supplied for other structures of your property like fences, sheds, driveways, and electronics. These are also ‘open perils.’ The third one is for personal property or personal belongings that are covered even when they are located on someone else’s real estate. These are called” named perils,” which means only specific reasons listed in the policy are covered

Beyond these three main fields, they cover other losses such as loss of use. Practically, if you need to stay in a hotel room, you will get paid while you cannot live in your home. This kind of covered loss is the so-called additional living expenses. Most companies pay for your financial losses in case someone gets hurt on your property and brings legal charges against you. It is called personal liability coverage. 

I imagine you have a lot of questions in your mind! Let me guess some of them! 

“Does homeowners’ insurance cover water damage, fire damage, tree damage? 

“Is there flood insurance?”

No rush! We’ll get there, but if you want to dig into the types of insurances right now, you can find a useful guide of what homeowners insurance covers here. 

What Homeowners’ Insurance Does Not Cover

With only a general policy, you will unlikely be paid for damage or losses caused by flooding; you will need to purchase flood insurance if you think your properties might be exposed to such a danger. 

Plus, keep in mind the wear and tear exclusion. It means the home insurance company won’t pay for the expected deterioration of the insured object. 

Key Factors to Consider While Choosing Your Home Insurance Provider

Warning! A signature is not enough to protect the house from theft and fire. During your selecting process, be careful about the amount to be insured and know that the insurer will not always pay your claims.

Next, do your research. Make sure to have enough information about what your potential insurance policy will cover. Read the insurance policy and the contract carefully, so the policy meets your needs and is suitable for each specific case. 

The first mistake to avoid is to try to save money by giving up fundamental coverages for the sole purpose of paying a lower premium. Instead, look for the combination of complete guarantees and the best price. 

There are two essential terms that you should encounter while studying the insurance policy: premiums and deductibles. 

What Do Premiums and Deductibles Mean?

To put it simply, the premium is what you pay for insurance coverage. Now, the question is how much you will pay in exchange for this service. The amount of money varies depending on a wide range of factors, starting with the policy. 

What will your insurance company consider for establishing your particular premium? If you were the insurance agent, you would like to know what risk you will take by making a deal with your potential policyholder, right? So, you would analyze the risk factors; in other words, how likely your customer will file a claim to take advantage of the coverage.  

A deductible is another fee. Every insurance agency and company requires this kind of cost. The difference between premium and deductible is that the latter must be paid only when you file a claim. Let me give you a specific example: if your deductible is $ 500, you need to spend this amount out of your pocket before insurance will pay. So if your expenses are only $300, you will have to foot that bill. In case your costs exceed the $500 mark, you have the right to get paid by the insurance company for any amount over the deductible.

To sum it up, a higher deductible usually equals a lower premium and vice-versa. You need to figure out which one fits better to your situation. 

How Much Does Homeowners’ Insurance Cost? 

The answer to this question depends on many factors, as is usually the case in the insurance world. Homeowners’ insurance companies usually calculate insurance rates based on where you live. You would pay more for insurance where more hurricanes, tornadoes, earthquakes, and other natural disasters typically take place. For example, if you live in Florida, you will pay more than your friend who lives in Vermont.

I know you’re saying, “Fantastic! But how much insurance will I pay?” I know, I know… I was also searching for this answer desperately before I purchased my home insurance. And you know how I discovered the exact price? When I sat down with my agent, who examined my case. Since every situation is different, every home is different, and every company is different (and even plans inside the same company differ), so you will find various options.

Here are some numbers to have an idea about an average home insurance cost by state:  

Thanks to its vast amount of coastline, Florida is the most expensive state, with an average premium of $3,575. Louisiana is next, with an annual rate of $2,979, while you can find the cheapest one in Hawaii, where an average insurance quote is only $337 per year. Find more figures here. 

I want to highlight that the cost varies based on many factors. For instance, you need to calculate how much insurance coverage do you need.

How Much Insurance Coverage Do I Need?

If your property is severely hit or destroyed, you will probably want to cover all your future costs to rebuild your home.

You have some alternative coverage options to consider.  

  1. Actual cash value: This means you will be paid for the real value of your property at the time it was damaged. Calculate the actual cash value of your home here.
  2. Replacement cost: Usually, this is better protection for your asset since it implies that the insurance provider would have to pay the costs of rebuilding without applying depreciation. Calculate the replacement cost of your home here. 
  3. Extended value: This option indicates that your provider would pay you up to 20 to 30 percent over your coverage limit. 

Now that you are educated on your options, it’s time to answer the big question: what is the best home insurance company?

The Top 8 Homeowners’ Insurance Companies in the U.S.

What is right for you, it’s not necessarily suitable for someone else. Why? Simply because your needs can vary based on aspects like location, property type, value, risk factors, and more.

Your unique home will get a unique insurance policy!  

Even though we listed only eight companies in this article, we are aware that the home insurance market is full of firms, agencies, and other providers. This is just a brief look at the most relevant players in the marketplace.

Let us draw your attention to something crucial before you pick your match: a comparison.

Everything needs to be compared. Compare policies, insurance rates, coverage limits, premiums, deductibles, discounts, bundling options, availabilities based on location, customer service, customer satisfaction, financial strength, handling claims, ratings from consumer reports and related studies — in other words, everything!

Amica Mutual

“Helpfulness insured.” 

When you need a hand finding your way through the maze of insurance processes, Amica Mutual gives it to you.  

When you do your first search on home insurance companies, you will find Amica among the first hits on Google. That’s not only just because they are good at SEO and other marketing strategies; it’s because they are consistently ranked among the best insurance providers. 


Amica Mutual is famous for its insurance policy offers, policy information, billing process, customer service, handling claims, and (last but not least) the highest customer satisfaction. They have a 95-percent retention rate, which means that their clients are so satisfied that they don’t leave their company.


J.D. Power’s 2018 U.S. Survey has rated Amica Mutual at the top for the 17th-straight year. Why? Because of its superior performance in almost every relevant aspect regarding the insurance industry. This insurance company received an A+ rating from A.M. Best Company for its ability to claim payments and for financial strength. Check out what customers have to say about Amica!


What can be a significant benefit for you while considering having a policy with Amica Mutual is that it’s a mutual insurance company. That means that its policyholders own the company. Why is it a good thing? Because it distributes dividends to its policyholders if you purchase a dividend policy. 

Is This What You Were Looking For?

If you own other properties (i.e., a car), Amica Mutual is perfect for you. You can combine your home insurance with auto insurance, and you will get a discount. Besides, they give you a discount for loyalty after just two years of membership.

Erie Insurance

Their founding purpose and history are touching: “To provide our Policyholders with as near perfect protection, as near perfect service as is humanly possible, and to do so at the lowest possible cost.”


Erie Insurance is the ninth-largest homeowners’ insurance company in the U.S. 

What they are good at is their prices. Their consumers say it, so it truly means something! They say that Erie has a reasonably priced policy based on their customers’ level of coverage. Their coverage options are more extensive than usual among U.S. insurance companies.

They are real and very human. When you decide to make a deal with Erie, you will have an independent personal agent whom you will interact with during all the processes you are going through. Your agent will support you, even if you need help on Sunday evening! They rate highly in customer service as well, since they provide 24/7 assistance.  

Erie is also unique because they genuinely try to meet your requests by adjusting their policies. For example, if you have basic homeowners’ insurance, you can add extra coverage for other natural disasters that may affect your home. You can even add coverage for your valuables.  


It is competing at the quality of services with Amica Mutual in the 2018 J.D. Power survey, as Erie Insurance also received high marks. Erie ranked 3 out of 5 stars in each category, which is not bad at all. 

It received an A+ mark from A.M. Best thanks to its financial stability. Check what customers say about Erie!


Here comes the best part — they are among the cheapest and best insurance agencies in the country. So, I sense, we are on the way of finding the best fit for you. 

Or Is This What You Were Looking For?

However, you have to check if they provide service in your area, as they do not do business across the entire country.

(Here’s an extra tip: interact with them offline! Their online options are a bit more modest compared to their competitors.) 

 State Farm

“Get to a Better State.”


Are you looking for the cheapest rates for your eventual homeowner’s insurance policy? Here we go; we found it! State Farm makes coverage available for everyone with its affordable price policy. So, you can get to a better state!   

It offers the most economical solutions when it comes to insurance quotes, and it’s arguably the most famous American insurance company. State Farm also does business nationally so that you can find them in the entire U.S.

State Farm also gives you the chance to bundle different policies. The more you bundle, the more significant the discount you get. For instance, you can choose higher deductibles and consequently, lower annual costs. 


J.D. Power thinks they are excellent since State Farm got higher ranks than average in the relevant classes of their 2018 survey. Besides, it received a superior score (A++) from A.M. Best Financial Strength Rating.

Their consumers are satisfied, so what else you need? The company is rated sixth out of 29 companies according to the J.D. Power survey for their insurers’ service, policy offerings, affordable prices, and claims handling. They are also strong financially, as they gained an A.A. rating from S&P Global Ratings for their financial strength. Check what customers say about State Farm!  


State Farm cares about their customers. It built up a vast network of insurance agents who provide useful assistance when required. They also have a lot of supportive online resources. 

Not Sure Yet? 

If you prefer to personalize your plan, you’d rather look for another company. Moreover, if you need special protection for your property, State Farm is not the best solution, since they have limited endorsement options. 


“You’re in good hands.” 

If you seek to cover all the bases, Allstate may be the choice for you.


It is the second-biggest national insurance company after State Farm in America, but Allstate stands out with coverage options and resources. 

Allstate, like its competitors, offers several options to personalize coverages and tailor the policy to its customers’ needs. It is better than most other insurance firms at customization options. For example, you can add extra coverage for the cost to rebuild your home, identity theft protection, floods, earthquake, fire, water backup damage, mobile and manufactured home coverage, and so on. Put simply, it provides more control to homeowners over their insurance issues. 

Allstate is reliable with its online service since you can file claims and pay premiums online throughout their online platform. It’s perfect for new homeowners because their insurance agents honestly keep up with the needs of their customers. Allstate’s customer satisfaction score is not as high as the other leading home insurance companies, so that would tell you that their customer service needs improvement.


It is also ranked above average in J.D. Power’s Home Insurance Study in all categories. A.M. Best gave Allstate A+ for financial strength. Check what customers say about Allstate!


Anything special? Yes! Generally speaking, more discounts are available in Allstate than in other companies. They have a very sharp so-called Claim-Free Bonus feature for those who have not filed a claim during the year by offering exclusive savings and discounts for them.  

Are you a new homeowner or hunting for a new house? Do you not have any idea about home insurance issues, companies, terms…anything? Don’t worry! Allstate will equip you with educational resources and give you tips for policy personalization. 

So, Finally Found? 

To sum up, Allstate is suitable for you if you are a new homeowner, but it’s not the cheapest option in the market. However, let’s remind ourselves that the cheapest is not always the best.

Farmers Insurance

As it comes with their slogan – “We know a thing or two because we’ve seen a thing or two,” Farmers Insurance is all about personalization!


Farmers provide services in all 50 states across the U.S.

Farmers Insurance is for those who prefer to personalize their chosen product due to its outstanding custom options and customized services. It offers three packages of coverage: standard, enhanced, and premier. Even the basic packages contain sufficient features for different needs, and you can add more custom options.

The standard level is for starters who don’t have unique and particular requirements. The two remaining are the upgrades of higher coverage limits and additional features. Consequently, if you purchase the premium level, you will have the highest limits on coverage and personal property, in addition to guaranteed replacement cost coverage.


Farmers received an excellent ranking in J.D. Power’s Home Insurance Study for all categories and an A score from A.M. Best for its financial strength. 

Good at customization, but not at customer service! Even though they provide 24/7 service, they are ranked only as average in J.D. Power’s customer satisfaction rankings for customer service, claims to file, and claims payouts. Check what customers say about Farmers!


Claims-free terms deserve special gifts! Farmers award their consumers with special discounts in the event they don’t file a claim. Clients can also turn deductibles for the benefit of themselves since the company may refund $50 each year if the policy is suitable. 


 “Nationwide is on Your Side.”


Nationwide is a mutual insurance company, but it offers “more than just insurance.” It has retirement, investment, and banking services as well. However, it is mostly known for its outstanding replacement cost coverage.  

Nationwide provides general and standard insurance services that you can find elsewhere too; however, it comes with some exciting features! For example, if something terrible happens to your personal property (destroyed, stolen, etc.), the firm will pay you so a fresh one can replace your old item! It’s fantastic! So, doesn’t Nationwide evaluate the actual value of your stuff, but presents you a brand-new item with no questions asked? In practice, yes! 

Pleasantly, the company supplies several useful educational materials, online resources, and helpful tools that make the process of filing a claim more straightforward.  


The company took an average rating home from J.D. Power in every category, but what makes the company powerful is its financial stability. It received very high scores for financial strength, which is a big deal! Check what customers say about Nationwide! 

Fewer customer complaints are registered than most insurance companies generally receive, even though its customer satisfaction ratings are right around average. On the other hand, they have many advantages like fast responses, easily reachable agents, and quick payments. 


There is another very kind thing they do. Do you want to replace your roof with new, more robust materials? Go ahead because Nationwide will refund the costs! 

If you want, you can also get additional coverage for your valuables to protect them. 

Will you keep searching, or have you already found your policy? Nationwide is recommended for new homeowners with high-risk factors, along with fans of bundling.

The Hartford

 “Green, environmentally friendly materials or processes for repairs and rebuilds.” 

The Hartford offers all the above.  


Their strength is a plus because it’s something you cannot find elsewhere. 

This company works better for those who want their house to be green and environmentally friendly. They offer abundant coverage options, a wide range of discounts, and a unique endorsement for green rebuilding. Beyond “being green” though, they don’t have many exciting discounts to add.

So, you must like the idea of a green environment and green buildings if you turn to them. In this case, you can be happy because your company will raise your policy limits by up to 10 percent!

The Hartford furnishes pleasing customer service and got quite good marks at customer satisfaction as well. 

However, they provide insurance services mainly for members of the American Association of Retired Persons (AARP) as they have an official agreement. But if you’re under 50 years of age, don’t worry! They have independent agents who will do their best to offer you a solution. 


The firm has a superior rating (A+) for financial strength. You can be quite sure they can afford to pay you after you file a claim (if everything meets their requirements, obviously). Check what customers say about the Hartford!

Are you considering owning a greenhouse?


 “Snap it in. Drive Safe”


Well, yes, Progressive is better known for cheap car insurance, but they do offer homeowners guarantees for their customers. It suggests you can purchase your desired home insurance through the company. Before buying, check what kind of coverage and service they provide in your state as they can vary.

Their working method is different from the most home insurance companies you find in the market because they rely on other firms and agencies. Why is it important? Because in reality, these partners will fix the rates you should pay and process your claims. Progressive declares on its official website that its partner insurers can decide the prices, coverages, and privacy policies. 

Check what customers say about Progressive!   


Customer service is also the reason for their built-in quote comparison ability that makes them the best at online home insurance quotes. Though this is also a reason to pay more attention offline. Check what a specific Progressive partner can offer you in your location. Take a look at the ratings, customer reviews, financial scores, and discount opportunities.

Is this Your Match?  

Progressive can be recommended for those new homeowners who are looking for basic coverage options.

We would like to see the reason why you picked a specific homeowners’ insurance company. Please feel free to share your thoughts with us in the comments section.

Tricks for Finding the Best Home Insurance on the Market

Your home is one of your most valuable assets. One of the most basic needs in our society is to have a roof over your head. But what if something happens to your home? You want the assurance that you’ve got it covered, don’t you? You need to be able to repair damages, replace valuables, or rebuild without having to dig too deep into your pockets. That’s where having the best home insurance becomes a valuable investment.

You protect your home against predictable wear and tear through routine maintenance and by replacing worn equipment. But, the majority of household insurance claims made are not predictable. Trends show that extreme weather conditions cause most home damages. When it comes to your home, don’t you want to prepare for such unforeseen circumstances?  

Good home insurance offers you the peace of mind that your family, your house, and your belongings are covered. But before you choose a policy, it’s essential to understand what home insurance is.

What is a Homeowners Insurance?

Damage to your property is a terrifying but real possibility. Considering that we can’t predict everything that will happen, it’s vital to prepare for the “what ifs.” Homeowners insurance is coverage that protects you from the unexpected expenses of property or personal damages, and, if you have a mortgage, you may be required to insure for at least 80 percent of the home’s replacement value.  

Home policies are very much like car insurance, where you pay an annual premium, choose a deductible, and decide on different coverages. In the event of filing a claim, you receive a lump sum to use towards repairs, replacements, or personal damages.  

Be aware that policies differ, and not all damages are necessarily covered. Consider, for example, the difference between named peril policies and open peril policies. “Peril” is the term used to designate the cause of your losses and may be specified in some plans.

Named (Covered) Peril Policies

This type of policy lists exactly the perils included in your insurance policy. In choosing home insurance, you should know what is covered in the terms and conditions of your homeowners’ insurance policy and make decisions about coverages you might need that are omitted.

The most common events included as named perils are: fire, smoke, explosion, lightning, wind, hail, vandalism or riots, and certain types of water damage. Depending on your insurance provider, you may also be able to specify other perils, such as burst pipes.

In a named peril insurance policy, your company will not cover any peril that occurs outside of the agreed-upon list. When filing a claim, you might have to dispute whether the loss occurred due to a named peril. You, as the policyholder, will need to provide proof that your insurance should cover the loss.

Often, named peril policies tend to be less comprehensive than open peril insurance policies.

Open Peril Policies (Comprehensive Risk Coverage)

Open peril policies will reimburse you for just about any loss regardless of how the loss or damage occurred.

There are, however, exclusions listed in the terms and conditions of the policy. They may include events such as war, floods, and nuclear hazards. Your insurance policy will not cover events that are mentioned in the exclusion clause.

Open peril policies tend to be the most popular type of coverage. If you live in a higher risk location, an open peril policy is probably a better way to go. But because of the extended nature of the coverage, open peril policies tend to be a more expensive option.  

In addition to considering perils, there are other terms you may encounter in researching home insurance that you should know so that you can make the most informed choice.

What’s the Difference Between HO2, HO3, and H05 Insurance Policies?

You might come across the terms HO2, HO3, and HO5 when researching homeowner policies. Here’s what it means, in a nutshell:

HO2 Policy

This is the most limited and basic version of your homeowner’s insurance policy. One version of the HO2 policy covers the Actual Cash Value (ACV), which is the depreciated value of the lost item covered. An HO2 policy with replacement cost coverage will provide coverage equivalent to the value of the loss.

Some of the named perils included in HO2 policies include fire, lightning, windstorms, hail, freezing, vandalism, smoke damage, volcanic eruptions, and personal liability cover.

HO3 Policy

This policy is a much more comprehensive option. Unless expressly excluded in your insurance policy, all peril is covered by the HO3 policy.  

Possible exclusions include events such as war, nuclear hazards, floods, earthquakes, water damage, and earth movement.

The HO3 policy only provides coverage on named perils. 

HO5 Policy

The HO5 policy offers the most comprehensive coverage. An HO5 policy will cover all items at the replacement cost if you experience damage to your home or its contents. This only applies to a named peril. The HO5 policy includes all events or items covered in the HO3 policy as well.

Earthquakes and floods are not included, as with most homeowner policies. Obtaining coverage for earthquakes and floods is usually available as additional insurance or “Endorsement.”

It is just vital, of course, to know what a policy does cover as what it doesn’t cover.

What do homeowner’s insurance policies typically cover?

We all have different needs. Therefore, you must compare different homeowners’ insurance companies when shopping for the best policy. You need to find an insurance policy that meets your needs and provides you with the best rates. It is also essential to understand how the company handles claims. So, what are the common coverages?

Typically, you will find four different types of coverage:

  • The actual property (dwelling coverage)
  • The contents (personal property coverage)
  • Legal liability coverage
  • Loss of use (additional living expenses coverage)

Dwelling Coverage

This part of the insurance policy protects you against damages to your home’s physical structure: Walls, floors, windows, ceiling, and roof, as well as the foundation. Often the policy may also include other fixtures, such as plumbing, air conditioning units, electrical wiring, and appliances that are built-in or attached to your home’s structure.  

Dwelling coverage also protects attached buildings, including garages, patios, sheds, and decks. A Dwelling coverage policy does not cover detached structures.

When shopping for Dwelling coverage, you should look for a policy that will fully cover rebuilding (home replacement cost) or repairing damage to your house. You should have sufficient insurance to cover the labor and materials required to rebuild your house completely. When speaking to your insurance policy provider be sure to mention essential or unique features of your home so that they are covered in the replacement cost as well.

The cheaper option in Dwelling coverage is an “actual cash value” policy. Such a policy reimburses you for damages based on the depreciated value of your property from aging and wear and tear. The coverage will probably be less than the original purchasing price and means that a portion of repair or replacement cost will come from you.

Content Coverage

Content coverage is also known as “personal property” or “possessions coverage.” This type of policy covers only named perils. It includes damages or loss to personal belongings kept within the structure of your home.  

In a content coverage policy, you receive protection against loss of contents, such as furniture, décor, electronics, appliances, and clothing. Depending on your insurer, other high-value items, such as jewelry, may only be covered up to a specific limit. For these high-value items, scheduled personal property coverage is an option with some insurers. It does, however, come at additional cost.

Much the same as with Dwelling coverage, Actual Cash Value (ACV) coverage typically applies to these higher-value kinds of items. In this case, with ACV, you can expect an increase in your policy rates. When claiming for loss or damage, an ACV policy will reimburse you for the current value of the item (less the depreciation). 

Although it comes at a higher rate, Replacement Cost coverage will reimburse you for the original value of your personal belongings.

Legal Liability Coverage

Liability coverage will protect you if harm comes to other people while on your property or if damage occurs to their property due to your negligence. It is one of the most flexible coverage options as it responds to various perils.  

If you are sued for multiple assets, umbrella (or excess) liability coverage will give you added protection for assets such as investments, real estate, or personal property. You should invest in coverage that matches the value of your assets.

Legal liability also covers medical expenses for guests on your property and any cost incurred by a lawsuit against you. Liability coverage is often subdivided into personal liability and medical costs for other parties.

Loss of Use

Loss of use coverage is also known as “additional living expenses coverage.” It will reimburse you for any cost that may occur while you cannot inhabit your home. That is, if you suffer damages or loss to your property, which require repairs covered by your property insurance policy and are unable to stay in your house while repairs are made, you can claim the cost of additional expenses such as alternative accommodations with a loss of use policy.  

Depending on the coverage, your insurance policy may provide you with daily compensation to spend on additional living costs. Other “normal” expenses are not covered.

Additional Coverage or Endorsement

Besides the four main coverage options, some companies offer more specific additional options. It’s best to evaluate your particular circumstances and whether adding these endorsements to your existing home insurance policy is a wise choice for you.  

Some of the most common additional (supplemental) coverage features offered by a “good” insurance provider include:

Sewer backup coverage, which covers water damage to your property due to sewer backups.

Earthquake, hail, and windstorm insurance covers damages caused to your home due to earthquakes, hail, or strong winds. Depending on your insurance company, this could be a standalone policy or an addition to your existing home insurance.

Flood insurance covers damages caused by floods. This policy can be purchased directly through the National Flood Insurance Program (NFIP) or your insurance company.

Inflation guard protects your property’s damage or replacement costs from changing value caused by inflation.

Scheduled personal property covers the full replacement cost of your valuables. Commonly insured items include jewelry, furs, art, antiques, stamp collections, coin collections, firearms, musical instruments, and other expensive equipment such as cameras.

Equipment breakdown coverage covers certain home appliances in the event of damages, electrical failure, or mechanical failure.

Once you’ve found the type of policy and coverages that are best for you, it’s time to start making decisions about the best overall insurance plan for your needs.

Happy mature spouses listening to real estate or insurance agent while discussing main points of document

Find the Balance: Good Coverage at Affordable Rates

Simply having homeowners, insurance is not enough. You need to ensure that your policy will cover all the items that are most important to you and that you are paying affordable insurance rates.

Your homeowner’s insurance premiums may vary depending on aspects such as your address and assets. Always do your research. Choose a company that provides reliable coverage at premiums that suit your pocket. Your policy limits and annual insurance cost increase when adding additional coverage or endorsement. But, by doing so, you expand the coverage on valuable assets. As you choose, particular policies, you should also consider whether they provide enough or, in some cases, too much coverage for your needs.

Being Underinsured

To be underinsured means that your homeowner’s insurance coverage is inadequate. You end up having to dig into your pocket in the event of damage or loss to your property. 


You should know the market value of your home and choose a coverage that is sufficient to cover replacement costs. But don’t pay for more insurance than you need.

An excellent way to get a good idea of what you should pay is by looking at average home insurance rates.  Compare rates in your state of residence to online quotes of multiple insurance companies.  

Don’t have the time (or patience) to search for quotes? Take a look at comparison sites such as and NetQuote. 

How Can I Save Money on My Homeowner’s Insurance?

Risk plays a significant role in cost when applying for homeowner’s insurance. You can certainly save money by gambling with coverage amounts or by dropping specific endorsements, but there are better ways to lower your risk to save money on your premiums.

Qualify for Deals and Discounts  

Bundle multiple policies with one insurance provider. You may save up to 30 percent on premiums when using the same insurance provider for both your homeowners and auto coverage. Some insurers also offer claim-free discounts if you do not file for reimbursement for a specified time.

Make Home Improvements

Lower your risk of potential damage by fixing things around your home. Replace old plumbing, add detection sensors for water-leaks or gas-leaks, or clear dry brush around your property to prevent fires from reaching your home.

Install a Security System or Security Features

Lower your risk of events such as theft or fire by installing or updating your security features. These may include alarm systems, smoke detectors, and water sprinkler systems.

Higher Deductibles

Your deductible is a yearly amount you must pay toward home damages before your insurance kicks in. The higher the deductible, the lower your premium will be, Choose higher, but affordable deductibles for emergencies to get lower premiums.

Increased Rates and Premiums

Is your insurance company asking for rate hikes? As mentioned before, your risk greatly influences your premium rate. Living in areas that are often affected by natural disasters will increase your risk and, ultimately, also your insurance premiums. Natural hazards include events such as wildfires (as seen in California), tornadoes (as seen throughout the Midwest), and hurricanes. Your rates may also increase based on the number of the value of claims you have made.  

When Making a Claim: you should be aware of the possible rate increase risk for filing frequently (2-3 times in two years). The insurance company might even refuse to renew your policy due to the higher risk.

Filing a single claim doesn’t typically result in premium increases. If your claim is only a few hundred dollars above the deductible, you should avoid making a claim. If you make smaller (unnecessary) claims such as these, it will cause you to lose discounts you get for remaining claim-free.

What to Look for in Homeowner’s Insurance Companies

Here are a few essential things to look for when deciding on a homeowner’s insurance company.

Financial Stability

Homeowners insurance is, in most cases, a long-term commitment. It is crucial to know whether your insurance providers are financially stable and creditworthy. If the home insurers go bankrupt after you invest with them, you could lose out on your investment and claims.  

Financial stability ratings may be classified differently from one rating company to the next. They will, however, give you a good idea of the financial health of your insurance provider.  

Some examples of data that rating companies look at when establishing financial stability ratings include:

  • Balance sheet strength
  • Operating performance
  • Business profile
  • Enterprise risk management (ERM) 

You can compare ratings from organizations such as Standard and Poor’s, A.M. Best, Fitch Ratings, Kroll Bond Rating Agency, and Moody’s.

Later, when we compare some insurance companies, we will take a look at the A.M. Best rating. For more information on how the ratings work, you can refer to their guide on Understanding Best’s Credit Ratings.

Customer Service (Consumer Reports)

I am sure you will agree that, as the customer, you have certain expectations of service delivery. That applies especially when having to make a claim. You are, after all, investing your money with the company and losses can be a traumatic experience.  

Reading customer reviews is an excellent way to find out if insurance companies have a good reputation for customer service. As with checking financial stability ratings, you can also find customer service ratings online.  

J.D. Power is one of the companies that specializes in rating insurers on customer satisfaction. They look at aspects such as overall satisfaction, policy offerings, price, billing and payment, interaction, and claims.


The Better Business Bureau (BBB) is a company that specializes in analyzing companies’ trustworthiness. They look at the various aspects of practice and ethics before providing accreditation to any business, and they provide ratings based on the history of a business’s practices.

Handling Claims

When it comes to having to file for a claim, your insurance provider should be able to handle the request in a friendly, professional, and timely manner. Some insurance companies have a reputation for providing less coverage than agreed upon or dropping customers who have filed single claims. These companies are probably not the right choice.

Level of Coverage

Your level of coverage depends on the type of policy you choose. Will you have separate coverage for structure and contents, or will you cover both in one insurance package? Do you have additional items insured in your policy? Ultimately, the question is whether your insurance company can guarantee coverage tailored to your needs.

Sublimits on Personal Property Coverage

Your insurance policy has additional limitations towards coverage of certain losses. Sublimits set a maximum available amount to cover losses.  

Policy Cost

Besides the monthly installments, you should have a look at the insurer’s deductible policies. As mentioned in the “Saving money on your homeowner’s insurance” section, you will need to pay an amount when claiming. Your insurer might provide lower homeowners insurance rates, but have high-deductible policies.

Where to Shop: Companies That Offer Homeowner’s Insurance

By now, you should have a fair idea of what you are looking for in your home insurance. Some of the listed companies also offer Auto insurance. In this section, we will focus mostly on homeowner’s insurance.  

In the comparison below, we will look at the following:

  • Financial stability rating (by A.M. Best)
  • Customer service and consumer reports (by J.D. Power)
  • How the insurance company handles claims
  • Level and type of coverage: All listed companies provide the standard homeowner’s insurance that covers the home structure, contents of the home, liability, and loss of use. We will be looking at additional coverage
  • Policy rates
  • Discounts
  • In which states they operate
  • The type of customer who benefits most


Financial stability rating: Excellent or “A+”

Customer Service and Consumer Reports

When it comes to overall satisfaction, Allstate ranked in 10th place out of 29 companies, scoring “Average” with J.D. Power.

Claims Handling

Allstate serves as a point of contact. Rather than waiting for a call center agent, you will have an agent who you can deal with directly. They will assist you when purchasing a standard homeowner’s insurance policy, making a claim, or purchasing more insurance. When filing a claim for a policy that you bought through an Allstate agent, you should deal directly with your agent.  

Policies purchased through an independent broker must be claimed either over the phone or on the Allstate website.

Level and Type of Coverage

Allstate is the nation’s second-largest home insurer (holding about 9% of the market).

They also offer additional benefits when purchasing home insurance. These include: 

  • Premium Gauge
  • Claim RateGuard
  • Good Life 
  • Mobile apps

There is an optional coverage called the “Green Improvement Reimbursement.” This coverage will provide you with a higher payout to replace your lost items with more energy-efficient alternatives.

Policy Rates

When compared to other national insurance companies, Allstate falls under the more expensive bracket. Rates do, however, depend a great deal on your location and other risk factors.

If you purchase Claim RateGuard, your homeowner’s insurance rates will not increase after filing a claim.


There are discounts offered to all clients that could result in huge savings. Allstate is mostly known for its “First Time Homebuyer” and “Welcome” discounts. These discounts offer annual savings of up to 10% on your insurance cost.

In which states do they operate? All 50 states. On their website, you can even select your ZIP code to show you common home insurance claims for your area. This tool gives you a good idea of what kind of risks are common in your neighborhood. It is a helpful tool to gain more clarity on what type of coverage to select.

Customers Who Benefit Most

First-time homebuyers. Allstate is best when it comes to educating customers and providing resources. They also offer some critical discounts for first-time homeowners. 

Amica Mutual Insurance

Financial stability rating: Excellent or “A+”

Customer Service and Consumer Reports

Amica is the industry leader when it comes to ratings and reviews. In overall satisfaction, they ranked in 1st place out of 29 companies, holding the title for 16 years in a row.

One of the features that sets them apart is their “Contractor Connection” program. Amica will help you, at no additional cost, find contractors to take care of your home repairs or upgrades. These repairs or upgrades also come with a three-year warranty on their work.

Claims Handling

Amica Mutual is known for agents who quickly respond to and process claims smoothly while remaining professional.  

To file a claim, you need to call 1-800-242-6422. Alternatively, you can submit your request on the Amica app or their online claims portal.

Level and Type of Coverage

Besides the standard coverage, you also have the option of additional coverage. These include the replacement cost of your home, personal property, and other expensive items. Coverage for catastrophes like earthquakes and floods are also available.

With Amica Mutual’s Platinum Policy, you can increase coverage limits and policy options. These include liability and medical payments, replacement of locks, sewer and backup coverage, and additional replacement cost coverage on expensive personal items.

A feature you won’t often see with other insurance companies is their “Unauthorized use of a stolen credit card” coverage.  

Policy Rates

Amica offers the lowest rates in both auto and home insurance. They offer affordable prices for most customers – even without discounts.


Amica is owned by its policyholders and is, therefore, a mutual insurance company. Policyholders who purchase their dividend policy will receive dividends of up to 20% of your annual home insurance cost.

Amica offers loyalty discounts if you insure with them for longer than two years.

Other policy discounts include:  

  • “Multi-line,” where you bundle your home insurance policy with another insurance policy within the company.
  • “Claim-free” discounts for not claiming in three years.
  • “Autopay” discounts for setting up automatic payments.
  • “E-discount” where you can sign up to receive policy updates or bills over email.

Other offered discounts are:

  • Updating your home’s safety features.
  • When you are insuring a new or recently remodeled home.
  • When installing automatic detection devices.

In which states do they operate?

Amica mutual operates across all 50 states.

Customers Who Benefit Most

Are you looking for the best customer reviews and strong ratings? Then Amica Mutual is the best insurance provider for you.

Wife receives a house key from husband

State Farm

Financial stability rating: Superior or “A++”

Customer Service and Consumer Reports

When it comes to overall customer satisfaction, the State Farm insurance company rated 6th out of 29 companies. You can expect an above-average experience with regards to finding the right insurance and filing claims. They also have local insurance agents to deal with your queries or claim requests.

Claims Handling

State Farm is such a financially stable insurance provider, you don’t need to be concerned about their capability of paying claims. For your convenience, they offer a 24/7 online reporting service. 

You can also submit claims or access your account information through their free mobile app.

Level and Type of Coverage

In some regions, their “Premier Service Program” can help you get in touch with contractors to repair damages. These repairs come with an incredible five-year guarantee.

State Farm offers basic homeowners insurance, which covers loss or damage due to multiple causes. These include wind, fire, lightning, theft, vandalism and riots, frozen plumbing, windstorms, and hail damage.

They also offer additional coverage on flood insurance, valuable personal items, home businesses, and even identity theft.

Are you looking for auto insurance as well? You can find standard car insurance with State Farm.

Policy Rates

You will find that State Farm offers some of the most expensive rates. Keep in mind that the prices tend to vary depending on your region and property.


As a State Farm customer, you have access to a standard set of discounts or policy modifications. These include:

  • Rate discounts for remaining claim-free
  • Higher deductibles with a lower annual cost

They also include discounts when:

  • Taking out multiple insurance policies within the company
  • Installing sprinkler systems
  • Updating or installing security features 
  • Having impact-resistant roofing material 

If you are the owner of a farm, ranch, or manufactured home, you may qualify for additional discounts.

In which states do they operate?

State Farm offers national coverage.

Customers Who Benefit Most

When looking for the different (multiple) types of insurance, State Farm is the way to go.

USSA (United Services Automobile Association)

Financial stability rating: Superior or “A++”

Customer Service and Consumer Reports

U.S. military members and their families have a particular set of difficulties they face. What makes them unique is that USAA focusses on this type of client. They receive very few complaints and have a reputation for satisfactory claims resolution. 

Claims Handling

You can contact a representative or file your claim by using the free USAA mobile app.

They also have a section on their website to assist you with claims.

Level and Type of Coverage

Your belongings will be covered worldwide (even in a warzone). USAA will also cover your military uniforms.

Coverage of usual perils such as fire, vandalism, theft, and weather damage is also available. There are no deductibles when insured with USAA. Your home and belongings are insured with full replacement cost without depreciation.

Landlord coverage is an option if you are renting out your home. Renters receive protection against any liability claims and other usual perils. It also provides you with compensation for lost income if damage occurs to your property due to named perils.

Additional coverage options that renters insurance includes: 

  • Valuable Personal Property (VPP) insurance. Will cover the full value of precious items.
  • Umbrella insurance will provide additional protection from liability claims and lawsuits.

Policy Rates

USAA offers more affordable rates on auto insurance for younger drivers and homeowners with high-value properties. Generally speaking, you will find lower prices with USAA while receiving higher coverage.


Some features are free of charge for USAA policyholders, such as full replacement cost coverage for personal items with no depreciation deduction on claims.

Other available discounts include:

  • Up to 10% discount on your annual premiums if you remain claim-free for five years.
  • By bundling auto and home insurance, you can save up to 10% of your annual policy rate. 
  • You receive discounts on security systems for your home.
  • Discounts on storage costs.
  • Higher deductibles that lower annual policy rates.
  • Up to 35% discount for members on rental cars and the USAA car buying service.

In which states do they operate?

They offer insurance in all 50 states and also some international locations.

Customers Who Benefit Most

U.S military members, veterans, and entitled family members.

Farmers Insurance

Financial stability rating: Excellent or “A”

Customer Service and Consumer Reports

Farmers Insurance is known for its excellent customer service and its friendly agents. Their claims process is handled fast and with transparency. They have more than 48,000 agents working exclusively for them.

When it comes to overall customer satisfaction, Farmers insurance company rated 20th out of 29 companies. They do, however, receive very few complaints considering the size of the company.

Claims Handling

As with most insurance policies, your experience when filing claims depends a great deal on where you live. Farmers Insurance operates through subsidiaries in a few states. That means that they do not directly handle your claims.  

File claims by calling 1-800-435-7764 or through their online claims portal.

Level and Type of Coverage

Besides home insurance, you can also apply for auto insurance with Farmers. In addition to the standard insurance coverage, other policies include:

  • Identity Shield: If you fall victim to identity theft, your coverage is up to $28,500 in legal or other expenses. This also includes credit monitoring for up to two people, annual identity reports, and other advisory services.
  • Eco-rebuild: When you experience a loss due to named perils, this additional option will provide you with up to $25,000. You can use the money towards rebuilding, repairs, or replacement with more eco-friendly materials.
  • Contents replacement cost: This provides full replacement cost of personal items lost due to named perils. The coverage will take into account comparable features and reimburse you accordingly.
  • Trees and shrubs: This will provide pay-out in the event of a covered loss to trees, plants, shrubs, or your lawn. You will receive up to $750 per item lost. 

Policy Rates

They offer some of the best rates for high policy limits when it comes to homeowners insurance.


Besides their excellent home insurance rates, they offer discounts on upkeep, such as roof replacement. Other discounts include:

  • Bundle discounts of at least 16% on your homeowner’s insurance policy rate when pairing up auto and home insurance.
  • Non-smokers discount for living in a smoke-free home for two years or more.
  • Discount when insuring multiple cars.
  • Loyalty discount when staying with Farmers insurance for three consecutive years.
  • Discounted rates when paying your annual premium in one lump sum.
  • A transfer discount for switching to Farmers from your current insurance company. There will be no lapse in your coverage if you choose to change.
  • Discounts on renovations made to your home’s heating, electrical, and plumbing systems.
  • If your home’s roofing materials are approved impact-resistant by Underwriters Laboratories (UL).
  • If Energy Star, EPA, or LEED certify your home.
  • You receive partial reimbursements when installing fire alarms, security systems, or fire sprinklers.

In which states do they operate?

Farmers insurance operates in all 50 states.

Customers Who Benefit Most

Homeowners with properties less than 12 years old or homeowners with estates worth more than $200,000 are likely to save. If you are increasing your property value by making home improvements, you will benefit.

If you are a driver of ride-hailing services such as Lyft or Uber seeking coverage, Farmers may be right for you.

Your Next Steps

These are only a few of the home insurance companies that are currently operating in the U.S. As you can see, most of these insurers offer standard homeowners insurance.  

All the companies listed above are financially stable institutions. You don’t have to worry about them being capable of paying out on a claim or going bankrupt.

Customer satisfaction is of the utmost importance when choosing your insurance company. You want to insure with a company that is transparent, helpful, friendly, and quick in response. Remember to look at online reviews and testimonials from previous or existing clients. That will give you a good idea of how the company treats its clients and handles claims.

Additional discounts and benefits are always a plus point in any insurance company. Qualifying for discounts could add up to significant annual savings on your insurance premiums.

If you wish to investigate more, you might also want to look at companies such as The Hartford, Nationwide, Liberty Mutual, and Progressive when choosing your policy. Don’t forget to read the fine print, as there might be hidden clauses that can affect your coverage.

With the changing climate and unpredictable natural disasters, it’s vital to have your valuables and property protected. You may not know what the future holds, but you can guard your belongings, home, and even family and friends by making informed home insurance choices. 

Is your home insured? What is your preferred homeowner’s insurance provider? If not, there is no better time to start protecting the things you value!

Home Insurance Policy and Why It is Important

Home insurance policy is also known as homeowner’s insurance policy. A lot of people tend to consider it as an unnecessary expense. This is because they don’t seem to come to terms with the concept behind it. 

Say, for instance, you are going grocery shopping at about $50. When you get to the grocery aisle of the mall, two things can happen:

  1. You spend exactly $50 on all purchases.
  2. You spend less than $50 on the purchase.

It should not be possible to spend more than $50 when cash at hand is only $50.

Relating this to homeowner insurance policies, the more money you spend to obtain insurance on your home, the more the insurance covers. Conversely, the less money you spend, the fewer the insurance covers. It also happens that an insurance company would pay 20-25% more than your home insurance policy limit to cover all the damages to your home.

What is a homeowner’s insurance policy?

Homeowner’s insurance policy is a policy that protects your home from adverse conditions or unplanned eventualities. 

Homeowners insurance protects you from irreparable losses. It is the backup plan for theft, fire outbreaks, system failure, lightning, hail, explosions, or more. Instead of footing the bills for damage control, your insurance company takes care of it.

The truth is, no one ever builds a house dreaming of disasters to befall it. They build a house as a legacy; something that would hold possibly long after they are gone to ensure that their offspring or family members are well-taken care of. 

Getting a new house is expensive, especially when it is possible that all valuables could have perished alongside the house. In the aftermath of a disaster, it is your insurance policy that will bail you out. Hence, it is important to insure your property. Most importantly, there is no better time to ensure your property than now. 

What is the basic homeowner insurance coverage?

There are basically three levels of coverage:

  • Actual Cash Value: this is the value of your house in the current market and not what you purchased it for. In case of any repair, your insurance company will only pay what your house is worth according to real estate agents.
  • Extended Value: this is the 20-25% increase in your home insurance policy limit that your insurance company is willing to pay on any damage incurred on your property. 
  • Replacement Cost Value: this is the cost of repair on your property, equal to its original value.

HO1 to HO8 forms are property protection forms that cater to the needs of homeowners and types of residence in the US.

HO1 policy (basic form for homeowners)

This policy strictly covers the “perils” listed in your policy and it only allows 10 – vandalism, aircraft damage, lightning, vehicle damage, theft, riots, explosions, volcanic eruptions, fire or smoke, hail and wind storms. This policy does not give room for personal property or liability coverage.

HO2 policy (broad form for homeowners)

This policy is an expanded form of HO1. It covers all the perils stated in the HO1 form as well as 6 more of its own. Sudden home system dilapidation, falling objects, Accidental damage from electrical failings, AC or heat failures, adverse effects of winter on the house, etc. 

HO3 or “open peril” policy (special form for homeowners) 

This is the most common policy form. It caters even to perils not listed in your home insurance policy and also HO1 and HO2 forms. It covers both personal properties and liabilities. There are about twenty perils not covered in HO3 form. few are floods, war, environmental pollution effects, theft when the house is under construction, water damage, pest infestation, and more. 

HOB (hybrid owners policy) is the same as HOB3 polic,y but it covers water damage.

HOB4 policy (for tenants)

This policy covers the personal properties and liabilities for tenants including loss of use (when a living space in inhabitable, your insurance company will step up and cover the expenses for lodge accommodation and feeding) 

HOB5 policy (comprehensive form)

This is the most expensive home insurance policy, but it has the most coverage possible. It covers more perils than the other policies and like HO3, it is an “open peril” policy.

It engages the replacement cost coverage type.

HOB6 policy (for condos)

This policy will cover all your personal properties and liabilities if you live in a condo. Like the tenant’s policy, it does not cover the structure of the building. It also does not cover your personal items.

HO7 policy (for mobile homes)

This policy is the same as HO3 policy except, it is modified to suit mobile homes. The policy covers 6 types of mobile homes and some of them are modular homes, park model homes, double-wide manufacturers mobile homes, sectional homes etc.

HOB8 policy (for older homes)

This policy covers older homes. It is the same as HO3 but it has been tweaked for old homes, registered landmarks, and historic homes.

It covers homes that are more than 40 years old and homes that don’t meet structural cosmetic update requirements. This peril plan engages actual cash value coverage type.

A standard home insurance policy (HI) will cover:

  • Interior or exterior damages. These are damages inflicted on the interior or exterior part of your property. It can be due to arson or other fire-related damages, hurricanes, willful destruction or damage of your property by an external party without it being for a restorative purpose. In any of these cases, your insurance company will cover totally or partially the cost of renovation.
  • Liability coverage for accidents caused by you or members of your family including pets. This protects you from the grievances of others. For instance, if you have a dog that takes delight in peeing in your neighbor’s potted plants and she or he lodges a complaint, you can choose to pay for the damages through your insurance company. Or a different scenario where something of someone gets damaged on your property you can also choose to settle the debt through your insurance company. 
  • Living expenses during a period of renovation. If your house is undergoing renovation and you can’t live in the house because it’s the whole house that is to be reconstructed, possibly because of a fire, hurricane, or flooding incident. All expenses incurred from hotel rooms or rented living space, feeding, laundry, rented furniture, and storage of properties until the work on your house is done will be covered by your insurancecompany. Now, this is a sweet deal if I may say so myself.


This is an extra benefit or clause added to the basic terms of pre-existing policy contracts to cover damages incurred on your property. For damages resulting from natural disasters like earthquakes, floods, and careless home management, “acts of war”, and ” acts of God”,  riders can be employed.

A rider affords you the benefit of improving your policy without acquiring a different home insurance policy.

Ordinarily, insurance policies do not cover natural disasters except with the aid of a rider.

How much does homeowners insurance cost?

The amount of premium you pay depends on the property you are trying to protect.

  • An estimate is drawn after an agent survey the cost to rebuild your home, which includes the cost of the land and the content of your home. 
  • The material used to construct your home. Premium is higher for homes built out of wood than bricks.
  • The distance between your home and natural resources like water and the distance to services like the fire department. 
  • Home quality, age, and maintenance. The older a home is, the higher the premium will be.
  • Cooking appliances.
  • Recreational activity amenities such as pools, ball courts, playground, anything that can lead to injuries.
  • Pets: the more docile a pet, the less expensive it’s premium will be. However, if your pet is on the aggressive list of pets, your premium will be high.

Tips To Lower Your Insurance Cost

Boost your deductible. Deductibles are out-of-pocket expenses that you will need to cover in order to reduce your annual premium from the insurance company. The downside to this tip is that sometimes the cost incurred will be high.

Security systems and alarms: installing a burglar-proof system closely monitored by a central or local police station with proof of contract (for the benefit of your insurance company) will reduce your annual insurance by at least 5%.

Multiple policies discount: For insuring your automobiles as well as health with the same company, you can get at least a 10% discount from your insurance company. 

Mortgage: Ensure you pay off your mortgage (a type of loan secured to purchase fixed assets, for example, a house or land). If your mortgage can be a 100% settled, your annual premium will drop drastically. If you pay off your mortgage, your insurance company will think that since the house is yours you will take care of it responsibly.

Additional Construction. If you ever decide to build an additional structure on your land, take note of all the factors that can raise your premium. After that, build the structure accordingly. You already know that wood structures invoke high premiums and pools can raise your insurance premium as high as 10%.

You are already scrambling to get your property insured, aren’t you?

It might look a lot to absorb initially, but insure your home today!

The Best Car Insurance Companies on the Market

You know that auto-insurance is something significant. The average US citizen spends more time in their car than anywhere else in the world. You need to be sure that you are driving a safe vehicle. In case of bad luck and a car accident happens, you and your motor vehicle will have protection. It is expensive to pay for repairs and personal injury out of pocket or damage your credit score by running up high credit card debt.

That is why car insurance is so important. There are hundreds of car insurance companies in the country. It might be challenging to choose the best one for you. Don’t be scared. There are a few straightforward rules to guide you through the process. If you follow them, you should not have a hard time picking the coverage that suits your needs and individual requirements perfectly.

What You Should Know Before Purchasing Car Insurance

If you only want the lowest price possible, there will be pitfalls along the way. What you should aim for is to pay less for the most insurance coverage possible, which is not an impossible mission. First on your to-do list should be to see if your family and friends have recommendations. Think about the experienced drivers in your social circle. They might be able to share a few tips that will help you get the lowest car insurance premiums possible.

There are a few other factors you should consider too. The world we live in is changing, and so is auto insurance. Advice that was solid ten years ago might not be the best way to go. That’s why there are a few other things to do. Determine which car insurance policy to pick from the pool of quotes you’ve received. 

Go for the Highest-Rated Companies Only

You want an insurance provider that has a proven track record of: 

  • Client satisfaction
  • Financial stability 
  • Range of policy options
  • Easy-to-file claims

Some lesser-known car insurance companies may offer lower insurance premiums, but you should ask yourself, is it worth it the risk? There are many respectable studies on customer satisfaction and service quality. J.D. Power’s study is the most trustworthy one. It is published every year. Read it if you want up-to-date information on the best car insurance companies in the market. It is the best thing to do to opt for an industry leader. It will be worth it paying a little bit more. You will get reliable customer support, easy to file insurance claims, and assistance on every corner.

Consider the Deductible 

The level of deductible will determine both the money you pay every month toward your insurance premiums and the cost of out-of-pocket expenses in the unfortunate event of an accident. A higher deductible means lower premiums. A lower deductible means less out of pocket expenses in case of a car accident, but higher premiums.

Weigh the pros and cons, consider your budget, and be careful when making your choice. If you don’t understand how deductibles work for full coverage and liability insurance, don’t hesitate to ask your insurance agent. They will help you pick the option best fitted to your individual needs.  

Remember, the State-Minimum is Not for You

Every state has made car insurance mandatory, with very few exceptions. The state legislature determines the minimum amount of coverage you need to purchase to be allowed to drive on the state’s roads. This minimum coverage is typically not enough to pay for medical expenses due to a personal injury, repairs of a vehicle damaged due to a car accident, etc.

If you want proof of insurance to show the highway patrol when stopped for a check, the state-minimum will do. However, if you’re going to be genuinely protected, full coverage is better than simple liability. Your expenses will be a little higher. The cost will not be that much higher if you are eligible for specific discounts or you customize your policy. The best companies out there have a lot of options for less expensive insurance.

Shop Around and Compare

Don’t forget that your car insurance is a considerable monthly expense. You should not approach the process of choosing the right company lightly. Ask as many car insurance companies as possible for quotes and then compare them. You want the best protection for the right amount of money. You can achieve that with research and effort. After all, you do not want to have to dig into your savings account every time you have to pay your insurance premiums, right?

Another important thing about paying insurance premiums: if you miss making a payment that will reflect on your credit score or insurance scores. You may have a tougher time refinancing an auto loan, or mortgage on your house. That is why you must find a policy that you can pay for without trouble.    

Best Car Insurance Providers

Let’s take some time to take a look at some of the best car insurance providers in the US this year. It is essential to know their names when you begin your search for the policy that will protect you on the road.

Amica – America’s Favorite Vehicle Insurance Coverage Provider 

You can easily see why Amica has been one of the country’s leading car insurance companies for the past several years. J.D. Power’s 2019 Insurance Shopping study supports this fact. The company received an overall score of 885, according to the study, and it is higher than most other insurance providers in the country. Amica is at the top of the list in several New England states.

If you choose to purchase coverage from Amica, you are in for a lot of benefits. The financial stability rating of Amica Mutual is “A+ Superior.” This means that you can count on it staying afloat even in the worst-case scenario for the economy. Here’s what’s the best thing about getting an insurance policy from Amica.


In case of a car accident, there are no restrictions on the repair shops where you choose to repair your vehicle. That’s something very few insurance policy providers offer. The range of coverage options offered by Amica is also impressive.

We recommend that you look at their Platinum Choice Coverage. It costs a little more, but its comprehensive coverage has no match in the industry. No matter whether it is personal injury protection, uninsured motorist protection, or vehicle damage you’d like, this choice of insurance covers them all.


There are a few cons, of course. Amica does not have very reliable online support. If you want more information on their policy options, or make changes to a policy you’ve already signed up for, you will need to contact them directly.

If talking to a company’s representative is not a pleasant prospect for you, you might want to think twice before signing with Amica. People also complain that Amica offers fewer discount options for liability coverage in comparison to other car insurance companies. 

Geico is Perfect for Those Who Embrace the Digital Age

We live in a world driven by technology. It is only logical that there are car insurance companies selling coverage to customers who think of themselves as tech-savvy. Geico is the perfect example of a tech-savvy policy provider. Berkshire Hathaway owns the brand. In case you don’t know who that is – we are talking about the second-largest car insurance provider in the United States. That’s impressive.

Geico’s ads boast about low rates, excellent coverage for liability, and high-speed of service. That’s what most insurance providers promise. So, what makes Geico the right choice for you in case of an accident involving your vehicle? Let’s take a look.


Geico offers a wide range of comprehensive discounts. If you are always on the lookout for a bargain, you may very well find it in one of Geico’s offers. Look at the list of discounts offered to federal employees, retired military personnel, and other social groups. You may be eligible for a serious cut on your insurance premiums. Lower rates are a good reason to sign with Geico. 

Online Accessibility

What makes Geico’s policy options attractive, however, is how easy it is to use your coverage online. The mobile app run by Geico is far superior to any of its competitors. You have the opportunity to never talk to a real-life insurance agent ever. Thanks to the app, you can request a car insurance quote, purchase a policy, and even file an insurance claim with just a few clicks. That’s why we say Geico is the best choice for the tech-savvy vehicle owner.

It’s Not All Positive

There is bad news too. Geico does not do gap insurance. The guaranteed autoprotection policy (gap) covers the difference between the cost of your car and the damage caused in an accident. You cannot count this type of protection if you sign up with Geico.

Another drawback is that most of the communication is done online. Older people and those who do not like to live entirely in the digital world tend to find it off-putting. If you are one of them, you might want to look for car insurance elsewhere. The tech-savvy vehicle owners should be able to embrace Geico on the get-go. 

Progressive – Best for Discount-Hunters

Let’s face it – paying insurance premiums on your car can add considerably to your monthly expenses. When you are looking to optimize your budget, it is only logical that you’d want the best deal possible for your insurance coverage. It is essential, however, that your car insurance covers your basic needs:

  • Medical expenses
  • Personal injury and bodily injury 
  • Roadside assistance
  • Liability
  • Repairs in case of a car accident 
  • Uninsured motorist protection/underinsured motorist protection

The perfect balance between the cost of the insurance and what you are getting from the policy with Progressive is what you will strike. It is one of the top five car insurance companies in the US. Its financial stability rating is also impressive. It is “A+ superior.” They calculate your insurance premium based on both your driving record and habits. There are also many Car insurance discount options. 

There Is a Way to Pay Less

You can qualify for a discounted rate if you are a homeowner – even if you do not purchase your homeowner’s insurance from Progressive. Students with good grades pay less too. You can easily see what type of discount you are eligible for by requesting a car insurance quote on Progressive’s website.

Pet Insurance

You will be happy to learn that the policy Progressive provides offers pet coverage too. This coverage means that in addition to personal injury insurance claims you can have the vet’s bill reimbursed too. That’s in case your pet has suffered an injury in a collision.

Progressive’s customer support also deserves praise. Getting in touch with an insurance agent or learning more about their coverage will not be a problem at all since their customer service representatives are readily available.  

The Hartford – The Underdog No One Should Underestimate

The Hartford is not the most famous or largest collision coverage provider out there. They rank between 15th and 25th place on various rankings. However, they offer a reliable service throughout. What should make you consider buying coverage from them is the fact that there are many policy options to choose from. One of our favorites is the so-called “new car replacement program.” It ensures that you will get a new car if your recently purchased vehicle is totaled in a collision. Bodily injury coverage, towing, and roadside assistance programs are all coverage options too. You can build a custom policy. You purchase the minimum-required coverage, and then add programs that you like or think you are going to need. 

The Cons of Having Hartford as an Insurance Provider

One of the drawbacks is that The Hartford works almost exclusively with AARP-members in most states. Even if you manage to receive a car insurance quote from an independent insurance agent, you will have to go through the tedious application. This includes filling in and sending forms in the mail. In this tech-savvy day and age, the time-consuming process is among the main reasons why The Hartford ranks low on the customer-satisfaction scale.

State Farm – The Old-Timer is Still Solid

State Farm is an auto insurance company that has been around since 1922. The company has long traditions and persistently high levels of client satisfaction. They make it the best option for people who are looking to purchase a vehicle insurance policy from a financially stable institution that is not going to let them down. State Farm’s offices can be found all around the country. Some car owners find comfort in walking in physical offices and talking directly to an agent. That is something the online-only coverage providers cannot offer.

State farm gains praise for its treatment of clients. For example, in 2018 alone they have written over $40 million of private passenger auto insurance. Getting paid the money on an insurance claim when you work with State Farm is an easy and relatively fast process. You should not underestimate their online presence either. State Farm is famous for its physical offices which their clients love and cherish. With State Farm, you get the best of both worlds.

Wait, There’s More!

They also have a great mobile app and online client support and car insurance quote system that is relatively easy to use. State Farm’s financial stability is rated “A++ Superior,” which means it is better than any other car insurance company in the market today. It pays off to have been in the business for nearly a century. You know what your clients want and how to give it to them. There are a couple of drawbacks, though. For example, there are no automatic pay discounts and umbrella insurance discounts. Multi-car discounts are on the table, though. They do not offer uninsured motorist coverage. That can be a deal-breaker for the vast majority of those who are looking to pay less and have more protection. 

Liberty Mutual Insurance – Now We are Talking About Traditions

Liberty Mutual was established in 1912. They have been offering car insurance for well over a century. It is safe to assume that they know what they are doing. If you are among the 1.5 million vehicle owners who purchase their coverage, you already know that.

Liberty is described as a reliable, financially stable, and easy-to-work-with company. It certainly is better than most car insurance companies that you can find on the market right now. Their standard coverage offers you everything you could wish for in car insurance.

Additional Coverage Options

  • Accident forgiveness – you don’t have to pay for an insurance premium increase after your first accident unless you caused serious bodily injury.
  • New car replacement – in the unfortunate event of you totaling a newly purchased vehicle in a car accident, you get a new one.
  • Better car replacement – you can get money to pay for a car that is one year newer/with 15,000 fewer miles on it, in case of a car accident.
  • Deductible fund – if you pay for this option, you get a $100 tax deduction and $100 more the next year. That’s ideal for those who are looking for a higher deductible.  
  • Multi-car discount – you pay less for the policy on a second or third car through Liberty Mutual.

Liberty Mutual Insurance has been in the insurance game for a long time. They would not have survived in this competitive market for so long if they did not offer above-average client support and fast response. You can file insurance claims 24/7 and count on having your request processed in a short period.

There is only one drawback: the price for a single policy can be somewhat higher than the national average. You get a lot for the value of your money though. If it is stability you are after, you will get it from Liberty Mutual Insurance.

USAA – For the Military Men and Women Out There

USAA is the best option you have if you or a member of your family is a member of the military or is a veteran. You will be surprised how strong a presence USAA has on the market. They truly look after their policyholders and keep the cost for coverage low.

The only drawback is that you can only make use of its offers if you’re active duty, retired, or a veteran with an honorable discharge from the military. This goes for you or a family member that is eligible for car insurance coverage. The company has the highest financial stability rating possible – “A++ superior” – they are not going out of business any time soon.

Membership restrictions are one of the cons of the USAA. Another is that they do not offer gap insurance or new car replacement coverage. You cannot match a car insurance policy from USAA with renters’ insurance or other insurance coverage that you have to pay every month.

Erie Insurance – The Local Giant 

Set aside the nationwide-operating industry leaders. You might have the chance to get the best deal for an auto insurance policy with some local companies like Erie. You can pay for a car insurance policy with them if you are a citizen of one of the following states:

  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin

Erie is not exactly a small, family-run business. You can easily see that it has a presence in several key locations throughout the country. The company’s financial stability is commendable. Their market share is expanding each year thanks to high levels of client satisfaction and the low cost of its insurance policies. It works with private customers, but Erie’s main strength is the commercial car-insurance sector. That’s why many rental car companies from their areas of operation choose to work with them. 

Esurance – A Chance to be Your Policy-Builder 

Allstate, one of the most significant insurance and financial services providers in the country, owns and runs Esurance. One of the best reasons to opt to pay for a policy offered by this company is the chance to customize the service very quickly. They have an excellent mobile app and online application form, which allows you to say what you want to receive for the insurance premiums you are ready to pay.

You will get an insurance quote. A client support operator and a real-life agent will also be prepared to talk to you about your wishes and what Esurance can offer you.

What Makes Esurance so Special?

Where Esurance truly stands out is its direct-marketing approach. They were among the first companies to start selling auto-insurance online without agents. The quick response time and the lack of necessity to go to a physical office make it perfect for the busy lifestyle of the modern age. You should be careful, though.

Due to the many options, you have to customize your policy, and you may end up having to pay more than with conventional car insurance companies. Get your car insurance quote and compare it with other competing offers before you sign up. Do it even if you have already been approved. This way, you have a better chance to bring the cost for your vehicle insurance down as much as possible.  

Allstate – Comprehensive Insurance Experience at a Cost

Allstate is in the upper half of nearly all car insurance review lists this year. The reason for this is simple. The company offers a thorough service and strives to top customer satisfaction charts. They have brick and mortar offices all around the country. It makes sense when you look at the name of the company – Allstate. They offer nationwide coverage for private citizens and commercial entities. Rental car users have particularly high praise to share about Allstate.

The online services provided by the company also deserve mention. Their website is straightforward to navigate. At the same time, if you have a problem, you can quickly get in touch with a real-life insurance agent who is going to help you out with anything you need.

You can mix and match different policies and options, including property and casualty coverage, gap insurance, no-fault insurance, and many more. Note that the cost of a single policy can be a bit higher. If you customize a bundle of policy options though, you should not have a problem paying less.  

Auto-Owners Insurance: The Surprising Leader

We are calling Auto-Owners Insurance the surprising leader because the company is not among the most “talked-about” in the business. You can easily miss their ads, or even physical offices in most cities. That does not mean that J.D. Power does not rank it “better than most” car insurance companies in the country in 2019. They have a very high satisfaction rating in the category of “insurance claims.” That means that when you request to get money for what your insurance covers, you will most definitely get it.

Auto-Owners Insurance maintains over 6000 insurance agents all across the country. If you need someone to help you pick a coverage that fits your needs and preferences, you should not have trouble finding them. The many discounts they offer are also attractive. One of the few negative things that can be said about Auto-Owners Insurance is that their website is not user-friendly.

Keep in Mind

You may want to find some additional information about the car insurance coverage they offer. If this is the case, get in touch directly with customer support or an independent agent. Be advised that it will cost you far less to purchase a policy with Auto-Owners Insurance if you qualify for some of their great discounts. If you don’t qualify, you will have to pay higher insurance premiums than the average for the US. 

Final Tips to Remember 

Now you know which are the best auto insurance providers out there. You can approach them for quotes and request exclusive coverage bundles. Insurance agents will be beneficial in that respect, and they can prepare these things easily for you. There are a few other simple rules that you might need to apply to make the process even smoother.

For instance, consider your car payments. If you are still paying off an auto loan on a new car, comprehensive insurance is a must. This way, if something terrible happens on the road and your new vehicle is totaled (or severely damaged) you will be protected. Many of the industry leaders require comprehensive insurance for vehicles that are still not paid off.

Consider Your Driving Habits

A car insurance agent might want to look at your driving record to determine the rate of your insurance premium. No one knows better what type of driver you are than yourself. If you think that you fall in the high-risk category, you might want to request higher liability limits. If you’ve been in several accidents already, those will come in handy.

The auto insurance policy has to cover your expenses in case of a problem on the road. You can save a lot of money, even if you pay higher premiums. The next step would be to improve your driving ability. That may seem hard at first, but it is the wise thing to do to avoid long-term costs and for your safety.

Ask as Many Questions as Possible

Your insurance agent will be happy to answer all your questions. They are there to provide you with the best deal possible. Don’t forget that the agent is not a clairvoyant. They need to know your precise requirements and preferences in advance so that they can make an offer that covers your needs completely. That is why when you walk in an insurance provider’s office, you have to be ready to ask about anything that interests you and answer their questions.

Learn about coverage options, insurance premiums rates, discounts, liability, etc. The same goes for when you are shopping for car insurance online. If you run into any trouble, contact the website’s customer support to receive assistance.

Remember, buying car insurance is not hard. Everybody does it. What you should aim for is getting the best deal possible. Do you have more tips about shopping for car insurance coverage? Would you like to share your personal experience with one or more of the companies we’ve talked about here? Don’t think twice about getting in touch with us now. We’d be happy to hear from you in the comments.

Compare Car Insurance: How to Choose the Right Provider

Have you ever wondered why you need car insurance? You make all these payments and get nothing in return – until you’re involved in an accident. The purpose of having a car insurance policy is to protect you in the event of loss, damage, liability, or injury. It helps you to prevent financial disaster.  

Is Car Insurance Mandatory or Optional?

Financial responsibility laws apply in all 50 states. In some states, it is not required to have car insurance, but it’s advised to at least have standard liability and property damage insurance. When leasing or financing your car, you may need to have additional insurance coverage.

6 Main Types of Car Insurance Coverage

Every driver has different needs, and each state has different laws. No policy will cover everything, so choose one that best suits your purpose.

Liability Insurance

When you are at fault, liability insurance will help protect you against a lawsuit. It should cover all expenses related to injury, death, or accident property damage to others. Any excess cost not included will be at your expense. 

Comprehensive Insurance

Comprehensive insurance policies cover financial loss for any damage caused by vandalism, riots, theft, hail, falling items, explosions, fire, and striking an animal. It will cover the current value of your car.

Collision Insurance

Collision insurance offers coverage of expenses or replacement costs in the event of damage or destruction of your car. It covers an at-fault accident or other collision. Although it is optional in most states, it may be required while you are still paying off the cost of your vehicle. Repairs only happen once you have paid the excess amount or deductible. 

Gap Insurance

If you’re still paying off your car and it’s written off, gap insurance covers the loan amount. To get gap insurance, you must also buy comprehensive and collision coverage. A deductible does apply when claiming the total loss of your vehicle. You only benefit from gap insurance if your car is worth less than you still owe on it. 

Uninsured or Underinsured Motorist Coverage

Underinsured motorist coverage covers your repair cost if the other (at-fault) driver isn’t insured or has insufficient coverage. Your injuries, medical bills, lost wages, and pain-and-suffering are also covered. Some states may require one or both forms of these coverages.

Personal Injury Protection and Medical Payments

With at-fault accidents, this form of insurance covers expenses related to injuries and medical care for you, authorized drivers, or your passengers. In “no-fault” states, they require personal injury protection (PIP) or medical payments coverage, regardless of who’s to blame for the accident.

Additional Coverages

  • Sound system insurance: covers replacement costs of stolen or damaged sound and video equipment. Renters insurance will also cover your sound system as well as any other belongings kept in your car.
  • Roadside coverage: gives standard roadside services like changing tires, jump-starts, or towing.
  • Personal umbrella policy: provides additional liability cover.
  • Rental reimbursement coverage: covers car rental costs or alternative modes of travel expenses if your car is in for repair.

7 Factors Influencing Your Car Insurance Quote

Many factors play a role in your car insurance quote. The cost reflects how likely the insurer thinks you are to make a claim. Other factors, such as your homeowner status, your occupation, how you use your car, and your education level may also affect your quote. Compare how different car insurance companies weigh these factors when settling on a premium.

Credit Score

In most states, your credit score is one of the main factors that affect your car insurance quote. Your credit score gives the car insurance company an idea of how well you can pay off premiums. You are considered to have a poor credit score in the 300 to 579 range. A fair credit score ranges from 580 to 669, good from 670 to 739, very good from 740 to 799, and excellent from 800 and above. 

Driving History

Are you a high risk to the insurer? Having an unfavorable driving history will leave you labeled as a high-risk driver, which results in a premium increase. These rates vary depending on the company and the incident. Being a safe driver will pay off.

Your driving history affects how insurance companies predict your driving in the future. Your auto insurance quote is affected by your history of accidents, fines, and other traffic violations. A limited driving history might also reflect poorly.  

Violations that influence a rate increase include:

  • At-fault property damage accidents: by filing a claim, your premium will be raised for up to three years, depending on the insurance provider. The average increase is $612 per year. Where possible, you should consider paying out of pocket rather than filing a claim. Your increased premium might add up to more than the immediate out-of-pocket expense.
  • DUI conviction: a DUI conviction could be one of the costliest when it comes to car insurance. The violation can stay on your insurance record for up to ten years.
  • Reckless driving: dangerous driving will also increase car insurance rates.

Vehicle Type

Collision and comprehensive insurance cover the cost of your car in the event of an accident. The more expensive the vehicle, the more the insurance will cost. Keep in mind that it also caters for the possibility of damaging another road user’s vehicle.  

The size of your car engine influences the cost of insurance. A faster and more powerful car is more likely to be involved in an accident. Modifications to your vehicle should also be mentioned to ensure coverage. Lastly, a more desirable vehicle is at a higher risk of theft. Consider additional security measures, and be sure to note them with your insurance agent.


You might reduce your premium by installing an alarm, immobilizer, or other security measures. Do you park the car on the street, in a monitored car park, or within a secure garage? These considerations will also influence your premiums.

Your Location

If you are living in a high-risk area, where events such as floods, hurricanes, or wildfires are frequent, you can expect elevated car insurance rates. Living in an area with higher accident rates and vehicle theft also adds risk and, consequently, an increase in premiums.

Your Age

 Age affects your car insurance rates. According to age-related claim statistics, the generalization is that you become more responsible with age. Typically, your premium will nearly double when adding a teen driver to your policy. After the age of 25, you can expect to see a decrease in insurance premiums. Between the ages of 30 and 60, your rates should remain stable. You might see rate adjustments again in your late 50s.

No-Claims Bonus

The insurer will want to know if you’ve made any claims or have points on your driver’s license. If you’ve made an insurance claim within the last five years, it will commonly result in a higher premium. A no-claims bonus should apply if you haven’t made any claims for at least a year.

First Steps to Compare Car Insurance Quotes

Although it may seem tedious, comparing car insurance quotes helps determine if you are getting value for your money. Car insurance rates for different profiles vary from one insurance provider to the next.

Cheerful young traditional family has a long auto journey and singing aloud the favorite song together. Safety riding car concept wide angle view image.

A car insurance quote should always be free of charge. It is only an estimate of how much your insurance policy premiums will be. Compare at least three quotes with the same criteria, limits, and deductibles before making your decision.  

When obtaining a quote, make sure you have the following information at hand:

  • ZIP code 
  • Coverage level
  • Marital status
  • Social security number
  • Vehicle Identification Number (VIN)
  • Annual mileage
  • Driving record
  • Vehicle make, year and model
  • Credit history
  • Current or previous insurer’s name

Once you accept the quote, you receive the actual rate. The rate is the amount you pay over a specified period. Some car insurance companies may require a down payment to start your policy.

Guidelines for Choosing a Car Insurance Policy

Find a car insurance policy and company that works for you and your budget.

How to Choose the Right Liability Coverage Levels

Bodily injury liability and property damage liability are subdivisions of liability car insurance. When an at-fault accident occurs, you might be held accountable for the damage and injuries of the other victims involved. You may face a lawsuit and in the worst case, even lose assets such as your home or savings.

Liability auto insurance provides a buffer between your assets and your liability. It is, therefore, the most crucial aspect of your car insurance policy. You might see the limits presented in three numbers. In typical insurance policies, they would be from 50/100/50 up to 250/500/250. These numbers represent bodily injury liability / total bodily injury liability / physical damage liability. The numbers represent thousand-dollar increments. If you choose 50/100/50 as an example, you will be covered as follows:

  • $50,000 bodily injuries per person injured in the crash.
  • $100,000 in total physical injuries.
  • $50,000 for property damage.

The total bodily injury liability (middle) amount should be equal to or higher than your home’s value and total savings combined.

State Requirements for Car Insurance

Each state has its minimum requirements when it comes to car insurance. As mentioned before, liability is a requirement in most states. You may also be obligated to have personal injury protection (PIP), medical payments coverage, or uninsured or underinsured motorist coverage. Each car insurance comparison website should be able to tell you about your state’s requirements.

Choose or Re-evaluate Your Level of Coverage and Limits

The type of coverage and limits should fit your needs and provide sufficient financial cover. If you are still paying off your car, you might want to consider full coverage. Full coverage includes liability, comprehensive, and collision coverage. You will need to add collision and comprehensive coverage to your policy in the amounts you want.

Each insurance provider evaluates your factors differently. Be sure to compare car insurance minimum and full coverage options with various car insurance companies. Look at the type of coverage, your deductibles and limits, and the premiums you pay.

Full coverage might be unnecessary if you can put your car insurance premiums towards saving for a replacement vehicle. If you don’t have health insurance, you might want to consider adding medical coverage to your car insurance policy. If you do have health insurance, you should look at whether you have enough savings to cover deductibles. Also, do your regular passengers have health insurance? We recommend uninsured motorist coverage if you are unable to cover your expenses in the event of an accident.

Compare At Least 3 Car Insurance Companies

When comparing, make sure that you list the same set of requirements for each quote. These should include:

  • Levels of liability property cover.
  • Uninsured or underinsured motorist protection.
  • Deductibles for comprehensive and collision coverage, if applicable.
  • Drivers and cars.
  • Discounts for which you are eligible.

You should also be able to compare car insurance quotes depending on minimum and full coverage, your credit score, and driving history. We often tend to look only at the cheapest quotes, but customer satisfaction is also essential. Your insurer should be helpful, efficient, quick to respond, and handle claims reasonably. 

Financial stability is essential when settling on an insurance company. Independent rating agencies can provide you more insight into the current and future security of your insurer.

Lastly, only accept quotes from companies that are licensed to operate in your state. The state insurance department can provide a list of licensed companies.

Compare Deductibles

You can easily influence your car insurance rates by adjusting your deductible. If you have sufficient savings to cover a higher deductible when filing a claim, it could result in lower rates.

Look for Car Insurance Discounts

You are eligible for a multi-policy discount when insuring more than one asset with the same insurance company. You can choose to bundle up home and car insurance, or insure multiple cars. For a teen driver, look at companies with a good student discount.  

Other companies may offer “pay-as-you-drive” types of plans. If you are a low-mileage driver or Uber and Lyft driver, you can qualify for discounts by merely enrolling after purchasing a policy. Discounts can go up to 50%.  

Payment Plans

A car insurance down payment of 8% to 33% typically applies with privilege fees ranging from $3 to $10 per payment. Look at the payment method accepted by your provider. Are you able to pay by check or money order, bank bill pay, EFT, credit card, or debit card? Some insurance companies also offer a 5% to 10% discount when you pay in full.  

The Fine Print

If you have a poor driving, credit, or insurance history, you may be looking at nonstandard companies as an insurance provider. Standard terms on their coverage and situations include limitations on who drives your vehicle. You are not permitted to lend your car to another driver with nonstandard companies, while standard policies do allow it.   

When renting a car, standard policies will automatically cover you, while nonstandard policies do not.

How Car Insurance Comparison Sites Work

When comparing quotes online, you will find two kinds of car insurance comparison websites.

Auto Quote Comparison Sites

Auto quote comparison sites are online platforms where you provide some personal information and receive rates from various providers. Once you decide on a quote, they transfer your data to an agent or the actual company website. They don’t sell your information to insurance companies or agencies. Auto quote comparison sites quicken the process of comparing quotes.  

Look for comparison sites that provide real-time quotes. Examples of real-time quote comparison websites are Insurify and

Some websites offer estimate quotes based on historical data, which is often out of date. Estimate quote websites’ rates get compiled using information from other drivers in your area with similar histories.

Lead Generation Sites

These sites do not give you accurate, personalized quotes, but instead sells your information to their advertising partners. Lead generation sites attract your attention by advertising competitive rates. They then redirect you to other websites where the prices are often less attractive. You should avoid lead generation sites as they send you on a wild goose chase. Such sites often lead to endless cold calls from insurance carriers and insurance agents.

Where to Shop? Let’s Compare Car Insurance Companies

When involved in a car accident, you’re already troubled with the experience, damage, and possible injuries. When making an insurance claim, it should not add to the stress of the situation.  

A lousy auto insurance company typically has high premiums or low premiums with inadequate cover. Customer service is also below average, and they tend to handle the claims process poorly. They might have specified repair shops that may not be convenient for you. A financially unstable insurance company might not be able to deliver on claims when the time comes.

That is why we are going to look at some of the best insurance providers in 2019. When shopping for an insurance company, you should look for affordable car insurance premiums, adequate coverage, customer satisfaction, claims processes, and financial stability.


Founded in 1922, USAA serves millions of U.S. military members. To qualify, you need to be a current or former military member, family of a military member, cadet, or midshipmen. J.D. Power scored USAA with an incredible 5 out of 5 rating. They are known for excellent customer service, a smooth claims process, good communication, reliable coverage, and competitive rates.

State Farm

Even with a 3 out of 5 customer rating, customers say they are likely to renew their policy with State Farm. Filing a claim is easy; they offer competitive rates and personalized insurance experiences. As a mutual insurance company, State Farm holds 18% of the market share, and its annual report shows over $1.7 billion net gain.  

Two Drivers Arguing After Traffic Accident looking at damage


Geico initially catered to U.S. government employees and military personnel. They have since expanded to provide to customers in the private sector as well. J.D. Power scores Geico with 3 out of 5 in customer satisfaction. Most customers are satisfied with the claims process and would renew their policy with Geico. They offer lower rates than competitors. Geico has nine regional offices, three service centers, and three claims centers across the states. You may receive unfavorable rates from Geico if you have an accident history.


Established in 1937, Progressive is the third-largest insurance company in the U.S. today. They boast over 400 offices nationwide and more than 33,000 employees. With a 3 out of 5 J.D. Power rating, customers show an overall satisfaction when it comes to submitting claims. Customer reviews are less favorable, though, concerning customer service, communication, claim resolution, and value. Although Progressive offers competitive rates for drivers with accident history, they have very average coverage options.  


Allstate was established in 1931 and is the second-largest publicly-traded insurance company in the states. J.D. Power scored Allstate with a 3 out of 5 overall satisfaction rating. Many customers feel unhappy with the high rates, average claims experience, and coverage options. The most attractive aspect of insuring with Allstate is that they offer a wide variety of discounts to customers. Esurance, a subsidiary of Allstate, targets self-directed and brand-sensitive customers.  


J.D. Power scored Farmers with a rating of 4 out of 5. Customers are generally satisfied with the claims process, and customer service claims resolution, but are unsatisfied with value for money. They tend to have higher rates than most competitors but offer a variety of insurance coverage options and discounts. Farmers operate across all 50 states.    


Nationwide is a Fortune 100 company that operates across all 50 states. They scored 3 out of 5 on overall customer satisfaction with their overall customer service and claim resolution. Other customers are unhappy with their value for money and wouldn’t recommend the company. Rates are higher than usual with standard coverage options, but they do offer some typical discounts.

Considering Switching Insurance Providers? Follow These Steps

Do you find yourself wanting to switch insurance providers? Here are some guidelines to ensure that you can transfer your coverage without any penalties or insurance gaps.

When is a Good Time to Switch?

You should start shopping for a new insurance provider for at least a month in advance. The best and easiest time to switch insurance is before you need to renew your current policy. If you’re unhappy with your current provider or want to find lower rates, you can choose to switch at any time.

First You Shop Then You Drop

Always ensure that you don’t have a gap between policies. If you have an accident during the gap period, it could be costly. Also, your state might penalize registered cars that don’t have continuous coverage.  

Changes in Circumstances

You might be able to save on insurance if you’re changing vehicles, moving to a new location, or getting married. If any of these apply, you might want to shop around for a new provider or update your policy.  

Weigh Your Options

While some companies charge early cancellation fees, others might offer new customer discounts. Weigh these expenses and discounts to determine if it’s worth switching now.

Make Sure You Cancel Your Old Policy

Typically, you will need to cancel your policy in writing. You need to provide your old company with a new policy number to confirm continuous insurance. Failing to cancel will typically result in automatic renewal and billing. Failing to pay will eventually lead to cancellation, but also put a black mark on your credit history. Your insurance company should always confirm that they received notice of the cancellation.

Check For Possible Refunds

Upon early cancellation, you may receive reimbursement for unused premiums less any fees that may apply.  

Tell Us More

Are you surprised by how many different car insurance policies there are? Do you now have a better idea of how to compare car insurance? Comment below and tell us about your experience.

Best Auto Loans December 2021

For most Americans, “Buying” means exploring financing options or secured loans for most major purchases.

In today’s technological world, this can be as easy as filling out an online application, but before you purchase, you should arm with the information you need to make an informed decision before signing on to your next car payment.

Buyers typically have questions like:

How long does it take to get approved for your auto loan?

Which credit scores qualify for the best auto loan rates?

What credit score do you need to apply and qualify for an auto loan?

So to take the guesswork out, we have compiled our best recommendations to help you answer these questions as a savvy consumer.

Check Your Credit

Purchasing a car is a significant investment, and you need to prepare before taking out a loan. It is essential to know your credit score. Your credit score is a three-digit number that predicts the likelihood of repayment of borrowed funds. The minimum credit score required is not fixed but depends on the lender’s policies and preferences. Understanding your credit score will help you gather information about the lender financing your loan. You can access your credit report from the major reporting bureaus free of charge.

If you check your credit and find yourself needing to build a credit score, applying for a secured credit card can help.

There are several websites that you can use to access your free credit report.

The only agency authorized to bring you Equifax, Experian, and TransUnion at no cost is

Have a Budget in Mind

As much as you should feed your eyes, it should be within a set boundary. You need to determine your monthly budget for the car to get the one you can afford. Hence, focus on the overall cost of the vehicle and the number of payments and interests you will need to pay. Dealers will always fill the table with sweet deals and suggestions, some of which may be unnecessary. Having a budget will provide an escape from extra car features that are above your budget. Lesson? Don’t allow dealers sweet-talk you into paying a higher purchase price.

If you need help getting a grasp on your finances and making a budget check out YNAB (You Need a Budget).

Research Loan Rates

With your credit stand in mind and a set budget, you can look around for auto loan rates that apply to your needs. You can submit a loan application online to obtain an auto loan preapproval. Applications can also be completed through the phone and can then be delivered in person at a bank or credit union. Finding the best car loan rates also means that you need to ask for a quote to see their requirements and charges as they differ from lender to lender. We will take you through some of the lenders in the course of this article.

Obtain Loan Preapproval

Do not engage in mindless car shopping when you don’t have enough money for a car. Getting a pre-approval loan is possible with most credit unions, banks, and online lenders who will give you a loan preapproval letter to take with you for your shopping. With the preapproved car loan, you can set realistically budget your money to get the best interest rates. Having a pre-approval letter from the lender will also give you an added negotiating advantage with the dealership. Having this letter adds leverage and gives you a stronger bargaining power at the dealership. With the guarantee, you can confidently walk into the store and feed your eyes. However, preapproval does not mean secured loans. You can still reduce the loan amount if you find a more affordable car.

What do lenders look at in your application for a pre-approved loan?

Before you can gain approval for a loan, your full financial profile, including credit history, will be checked. To evaluate credit history, your credit score and will be used. The reports cover unpaid debts, foreclosures, and the number of credit applications, which may affect your interest rate. Your employment history can also be considered to measure the stability of your income. If your employment history is not stable, it may attract a higher interest rate.

Careful examination of your income and expenses is done. The lender will be more willing to give you the loan if your income exceeds your expenses. This will provide evidence that you are able to meet your obligations every month. The down payment on the car purchase is also considered. If the loan amount is small, it is less risky to the lender. When there is a large down payment, the lender will give a reduced interest rate and vice versa. It is important to reserve a portion of your money in savings rather than using all for a down payment.

The length of the car loan is another consideration. Longer loans will reduce monthly payments but increase the interest paid over the life of the loan. With shorter distances, monthly car payments are high with less interest over the loan period. The value of the collateral used can impact on the acceptance of your loan application. There is a lower interest rate when there is a secured guarantee. When an asset is used as collateral, it can be lost if you are not able to repay the loan. Hence, caution should be exercised before putting up assets like a house as collateral.

What Companies Can Help Me With Finding the Best Auto Loan?

It is possible to get great auto loan rates even with bad credit. Some of the best options for all credit types are briefly described below.

Carvana: Online Car Dealer with Financing Options

If you are looking to get financing for quality cars from online dealers, Carvana is an option you should explore. With Carvana, direct financing is only provided for vehicles in its online inventory. Thus, your car purchase can be completed from the comfort of your bed and delivered to you. Those with bad credit can also apply for loan financing as no minimum credit score is required. However, there is a minimum loan requirement of at least $10,000 annual income.

Their auto loan rates have a soft credit pull with free delivery available in some cities. Its maximum loan term is 72hours, and Carvana offers a stress-free 7-day return policy. You can use the Carvana Auto Loan Calculator to determine how much loan you can afford. Applicants have to be at least 18years with a single-buyer offer. The Annual Percentage Rate (APR) is not fixed but depends on the car and financing terms. The services of Carvana are only available in the United States.


If you are going to use LightStream, you need to make sure you have an excellent credit profile. Applicants with excellent credit can be funded the very day they make the applications. This is what makes it one of the top choices for applicants that need immediate or fast funding.

However, if you don’t have a credit history or you defaulted in your payment before, this option isn’t for you. Lightstream will ask for at least five years of credit history and offer APR between 3.99% and 8.34%. Lightstream offers borrowers competitive rates and quick car loans from $5,000 to as high as $100,000. However, there are no preapproval options provided.

To qualify, applicants must be at least 18years and must be a US citizen or a permanent resident. More importantly, their existing assets and income must be enough to cover the new loan and any outstanding debt. The interest rate is determined by considering credit standing, loan term, vehicle cost, and method of payment. No restrictions are placed with regards to the make or model of the car into consideration. They offer unsecured and secured loan options.

Capital One: Auto Finance

This lending is provided by Capital One, a national bank for new and used cars. However, it is restricted to some types of vehicles. The bank’s Auto Navigator will ensure that selection is dependent on the vehicle available near your location. For new purchases, loan terms cover 24 to 84months. It is well-known with a vast network of car dealerships.

The loan amount ranges from $4,000 to $40,000, with APR offers as low as 3.59%. Applicants must be at least 18years with a valid street address to qualify. They must have a minimum monthly income of $1,500 to $1,800, which is dependent on their credit score. The average credit score is 550, with a minimum of 500.

Capital One facilities are available in all states except for Alaska and Hawaii. A prequalification offer from Capital One is not an immediate guarantee that the loan will be approved.


MyAutoloan acts as a car-buying concierge, matching borrowers with lenders for new and used car purchases. If you do not mind being contacted by many companies from your single submission, then this is for you. It is a platform that allows one shop around for the best rate, even without proper credit. The process may require hard credit pull which may temporarily affect credit.

The loan amount ranges from $8000 to $100,000. You can apply for a loan if you earn a monthly income of $1,800 per month and have a credit score of at least 500. Services are available in all states except Alaska and Hawaii. Applicants are expected to enjoy a fast preapproval process without paying a dime on the application. APR can range between 2.74% to 27% with the minimum granted to those with an excellent credit score. It also provides several tools that can help you decide on the best loan to use.

Consumers Credit Union: Credit Union Auto Financing

Based in Illinois, ConsumersCredit union is a full-service union that offers different financial services. They can lend to applicants with both good and fair credits. This means that the credit union can give to those with as low as 640 credit score. To qualify for this loan, applicants must be members of the credit union. Loan amounts of $250 to $500,000 can be obtained with APR of 2.99% to 21.99%.

The minimum loan rate of 2.99% is offered to those with excellent credit and with loans of 36months and below. It is widely available in all states. The membership fee is $5 plus a $5 per month. They require a hard credit pull to ascertain the creditworthiness of members, which affects your credit score. Loan decisions may be made in as quick as 24hours. Refinancing options are also offered with restrictions on vehicle mileage and age. Members enjoy discounts on loan rates when automatic payment arrangements are made.

LendingTree: Auto Loans

Within a single platform, applicants can be connected to Lending Tree’s trusted partners on the submission of their forms. Through the online platform, applicants are exposed to other options that may not have been considered before. Once necessary details like loan type, down payment, vehicle make, and financial standing is entered, it matches applicants with lenders.

The online application process is quite simple and does not affect your credit. It allows for more comparison of auto loan options to make choices that are within your budget, from your home. Loans are offered for new cars, used cars and refinancing options. Applicants must be 18years and above and a United States citizen with good to excellent credit.

Lending Tree offers additional tools like loan payment calculator, credit score check, and live rates based on the current market situation. Loan rate varies between 2.29% to 3.99% with repayment terms of up to 84 months for new car loans. The ARPs are slightly higher for loans regarding used cars. However, it should be noted that the rates vary from lender to lender. Down payment may be required for some of the loans.

RateGenius: Refinance Auto Loan

RateGenius is the lenders’ choice for those with good-excellent credit scores, as the average credit score accepted is 690. However, the minimum credit score is 550, with a household income minimum of $2000 every month. RateGenius offers auto loan refinance for any vehicle including motorcycles and boats.

Founded in 1999, RateGenius helps you get access to loans from its extensive network of more than 150 partners. However, the process can be quite rigorous as some lenders may demand more paperwork than others. With RateGenius, multiple options can be obtained through a single application. This affords you many options to select from and potentially lower payment.

Their APR is between 3.49% and 25.87%. Loan amounts of $10,000 to $90,000 can be accessed. A full credit check is done on all applications. When a lender is selected, a hard credit pull is performed, which temporarily reduces his or her credit score. This is done to provide a preapproved loan offer. RateGenius is meant for qualified applicants interested in obtaining a new loan and not merely to inquire about auto loan rates. However, the best rate of 3.49% will only be available to those with excellent credit. RateGenius is available in about fifty states.

AutoPay: Financing Option

With Autopay, poor credit doesn’t have to stop you from buying a car you love. While credit score can play a role, some loans are still available for those without proper credits. AutoPay specializes in new and used car loans, lease buyouts, and loan refinancing of up to $100,000. They act as a middle party between lenders and their customers, offering low-interest financing.

There is no minimum income requirement to apply. Eligibility is determined by vehicle cost, market value, and your credit standing. If you are looking for a low monthly payment, AutoPay claims to have some of the lowest rates you can find. They also claim to reduce APR by more than 50% with increased annual savings of over $1000.

APR ranges from 1.99% to 17.99%. The lowest interest rate of 1.99% is reserved for people with excellent credits. The minimum document fees of about $400 to $500 are required if you want to escape the stress of doing paperwork. Using the provided refinance calculator, you can estimate your savings through their refinancing program. If you are tired of exorbitant rates, Autoplay can find affordable loans for you or help you refinance your current one.

Clearlane: Auto Financing

Clearlane requires that applicants must make at least $2,000 every month with a minimum credit history of three years. Their services should only be used for those who are looking to refinance their current car loan. The minimum loan amount is $5,000, with an APR range of about 3.64% – 21.9%. The minimum credit score acceptable is 600. It is an excellent option for those who may find it difficult to obtain loans from the bank. Since Clearlane is not a lender in itself, you may be restricted to only lenders in Clearlane’s network. Credit score, the market value of the car, and the remaining balance of your loan will be considered. Powered and backed by Ally Bank, Clearlane offers gap insurance for events of uncertainty.

Auto Credit Express

If you are discouraged by your poor credit or previous bankruptcy status, Auto Credit Express has got you covered. It is a preferred referral source that helps you find a lender according to your budget for new or used cars. It does this by connecting applicants to lenders and dealers that specialize in bad credit holders.

Your credit history doesn’t have to limit you from accessing a loan to buy your dream car. However, it is not available for applicants making less than $1,500 monthly or without full-time employment. There is no fixed APR as it varies according to the lender. It is open to current residents of the United States or Canada who are above 18years, and it has no origination fee.

Final Words…

No matter what anyone says, paying for something isn’t as fun as using it. Before you buy, we can’t stress enough about having a budget in mind. You don’t want to overbuy. The benefits of getting the best auto loans are numerous. Please take advantage of each lender and do your research to understand their loan terms better. Check your credit regularly and develop good credit behavior to increase your chances of a favorable loan.