Six Simple Signs You Have the World's Worst Insurance

And how to get the right coverage from a good carrier
Written by Sara East
Written by Sara East

Insurance doesn’t have to be boring. That’s why we hired Sara East to be our BA insurance writer. Maggie specializes in making mundane subjects hella-entertaining.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Frustrated businessman in a suit driving his car.  Simple signs you have the worlds worst insurance.

You're spending your hard-earned money on a variety of insurance policies that protect your personal assets, so the last thing you want is bad insurance. Since most policies only renew once a year, it can be easy to forget about coverage until you need it.

Nothing is worse than needing to file a claim and realizing you have inadequate coverage or a difficult carrier to deal with. Fortunately, an insurance agent can help you shop quality insurance policies for whatever you need protected. Before you speak with an agent, these six signs show that you may have the world's worst insurance.

#1. Your insurance rates are super expensive

How much should insurance cost? This can be a loaded question, but you can get an idea by understanding the average price of coverage in your state. If you're paying significantly more than these prices, it's time to speak with an agent about changing your insurance. 

Average cost of home and car insurance by state

State Home Car
Alabama $1,433 $1,320
Alaska $959 $1,410
Arizona $825 $1,103
Arkansas $1,373 $1,239
California $1,008 $1,643
Colorado $1,495 $1,245
Connecticut $1,479 $1,690
D.C. $1,235 $1,799
Delaware $833 $1,542
Florida $1,951 $1,742
Georgia $1,267 $1,519
Hawaii $1,102 $1,114
Idaho $730 $877
Illinois $1,056 $1,079
Indiana $1,000 $1,033
Iowa $964 $886
Kansas $1,584 $1,147
Kentucky $1,109 $1,341
Louisiana $1,968 $1,774
Maine $882 $805
Maryland $1,037 $1,590
Massachusetts $1,488 $1,460
Michigan $942 $2,476
Minnesota $1,348 $1,222
Mississippi $1,537 $1,584
Missouri $1,285 $1,112
Montana $1,174 $2,476
Nebraska $1,481 $1,086
Nevada $755 $1,248
New Hampshire $972 $905
New Jersey $1,192 $1,595
New Mexico $1,017 $1,237
New York $1,309 $1,013
North Carolina $1,086 $986
North Dakota $1,253 $1,377
Ohio $862 $843
Oklahoma $1,885 $1,496
Oregon $677 $1,211
Pennsylvania $931 $1,304
Rhode Island $1,551 $1,656
South Carolina $1,269 $1,210
South Dakota $1,202 $1,180
Tennessee $1,196 $1,263
Texas $1,893 $1,449
Utah $692 $1,059
Vermont $918 $957
Virginia $999 $1,008
Washington $854 $1,110
West Virginia $940 $1,716
Wisconsin $779 $930
Wyoming $1,159 $1,371

#2. You Don't Have Enough Coverage

Sometimes you don't know if you have enough coverage until it's too late. You need to file a claim and realize your limits are not high enough to cover the damage. This leaves you paying out of pocket. Here's how to determine how much insurance coverage you need for the most common policies.

  • Know state minimums: Most states will have required limits of coverage for common policies like homeowners insurance and auto insurance. At the very least you need to have your state's minimum coverage, and most of the time you need more.
  • Calculate the value of what you're getting insured: Whether you're insuring your property, your business, or your life, determining the amount of coverage you need starts with calculating the value of what you're insuring. Your policy limits should cover the value to repair or replace your assets, or help your family pay for the cost of your death and any outstanding bills if you're dealing with life insurance.
  • Keep liability in mind: Taking inventory of your assets is one thing, but you also need to consider the possibility that someone will sue you for being injured in your home, vehicle, or at your business. As an example, it's recommended that homeowners purchase $300,000 to $500,000 worth of liability coverage.
  • Ask your agent: If you're uncertain whether you have enough coverage or not, speak with your agent about your concerns. They will go through your policies with you and help determine if you have sufficient limits or not. 

#3. Your Insurance Company Isn't Licensed in Your State

Before you start working with an insurance agent or company, insurance expert Jeffrey Green says you need to make sure they're licensed in your state. You can find this information on your state insurance department's website. 

This is also a good time to get a professional opinion about your coverage. When looking for an agent in your area, you can ask them to review your current insurance policies. 

#4. Your Insurance Carrier Has a Low Financial Strength Rating

A financial strength rating tells you an insurance company's expected ability to pay its claims and meet other financial obligations. Typically, a company’s financial strength ratings are available on its website.

Currently, there are five agencies that conduct financial strength ratings, and each one has its own rating scales. For this reason, it's best to look at the ratings from multiple agencies before determining the financial strength of your insurance carrier. 

How to contact rating agencies

Agency Website Address Phone number
AM Best Company, Inc Ambest Rd. Oldwick, NJ 08858 908-439-2200
Fitch Ratings 1 State Street Plaza, New York, NY 10004 1-800-75-FITCH
Kroll Bond Rating Agency, Inc. (KBRA) 845 Third Avenue, 8th Floor, New York, NY 10022 646-731-2368
Moody's Investor Services 99 Church Street, New York, NY 10007 212-553-0300
Standard & Poor's Insurance Ratings Services 55 Water Street, New York, NY 10004 212-438-2000

#5. Your Insurance Company Has Poor Reviews

Another sure sign that you have bad insurance coverage is if you're working with a company that continually has poor reviews and complaints. 

Insurance company reviews can be found in a multitude of places, usually with a quick Google search. You can also check the Better Business Bureau for the company’s rating, complaints, and reviews. Knowing any dissatisfaction or complaints that other customers have had can help you determine if an insurance carrier is right for you.

#6. You're Not Offered Ways to Save

Today, most insurance companies will offer a variety of ways for people to save on the cost of their insurance. Whether they reward for good driving behavior or being a long-term customer, a good insurance policy is one that makes it easy to keep your business.

If your rates are always increasing and you're not sure why or you're not receiving benefits for being a good customer, it could be time to move on.

Common ways insurance companies show loyalty

  • Providing bundling discounts for purchasing multiple policies 
  • Offering loyalty discounts and good behavior discounts
  • Communicating any changes in policies in a timely manner
  • Avoiding unexpected price increases

How an Independent Insurance Agent Can Help You

Insurance comes in all shapes and sizes, and knowing if your insurance is good or not can be overwhelming. An insurance agent has your back from the beginning. 

They'll chat with you, free of charge, and review any existing policies you have. They have expert insight on what is good and bad insurance and can help you get rid of the bad and replace it with great coverage. Independent agents aren't tied to one insurance company, so they'll search their network for a variety of quotes and provide insight on the best insurance carriers to work with.

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