Do your homework before choosing an insurance company

Like it or not, insurance is a necessary part of life and there are many options to choose from, so it’s important to pick the right insurance company. Insurance companies can range from small, family-run businesses to industry giants.

Each insurance company is going to offer different options depending on specialties and size. The type of insurance you’re looking for will heavily influence your selection process, so it’s best to do basic research beforehand to ensure you understand the essentials.

The main things to consider when researching companies are organization size, offerings, reputation, etc.

Better Business Bureau offers these tips for choosing an insurance company:

■ Do your homework. Research multiple insurance companies of varying sizes.

■ Focus on companies with positive reputations.

■ Determine how much coverage is desired for the type of insurance. Establish what deductible amount you are willing to pay for the amount of coverage.

■ Ask friends and family for input. If they’ve had a good experience with a company, it’s likely you will too.

■ Understand pros and cons of company size. Large companies may offer more services, but could be less personal. Smaller companies on the other hand may offer more personal service.

■ Decide who to work with. Depending on the business, consumers can buy insurance directly from the business or work with a captive or independent agent. A captive agent represents one specific insurance company. An independent agent or broker represents multiple insurance companies.

■ Compare prices and everything the company offers. Keep all costs in mind: insurance cost, deductible cost, co-pay and the cost the insurance covers if there is an accident.

■ Ask about discounts or packages because you never know where you could possibly save some money.

■ Read the agreement carefully before purchasing the insurance policy. If there is anything confusing have the agent or company explain the contents clearly.

■ Confirm companies are licensed with the state insurance commissioner. Contact the Ohio Department of Insurance atwww. insurance. ohio. gov or 800-686-1526

Insurance can be a fraudulent business and if you aren’t careful, you could fall victim to a scam. Use BBB resources to research the insurance companies you’re considering. Visit bbb.org or call 937-222-5825 or 800-776-5301. Report possible scams to BBB Scam Tracker at bbb.org/scamtracker.