| | | Consumers typically purchase insurance on vehicles, homes, health, life, dental and pets. Insurance is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, according to www.wikipedia.org/wiki/Insurance. Consumers can purchase insurance based on the state minimum requirements or extend coverages to include after market purchases, upgrades, additional features and other items of value. A good agent can advise a consumer of the appropriate amount of insurance to purchase based on budget and needs. |
| General sources of insurance information include the American Council of Life Insurers, the Insurance Information Institute www.iii.org, the National Association of Insurance Commissioners, and your state insurance department. You can also visit these websites: www.pueblo.gsa.gov and www.insure.com. When buying insurance:
Find out whether your state insurance department offers any information concerning insurance companies and rates. This is a good way to get a feeling for the range of prices and the lowest-cost providers in your area.
Check several sources for the best deal. Try getting quotes from a Web site such as www.insweb.com and www.nationwidebillrelief.com but be aware that many online quote services provide prices for just a few companies. An independent insurance agent that works with several insurers in your local area may be able to get you a better deal.
Make sure the insurance company is licensed and covered by the state’s guaranty fund. The fund pays claims in case the company defaults. Your state insurance department can provide this information.
Check the financial stability and soundness of the insurance company. Ratings from A.M. Best (www.ambest.com), Standard & Poor’s (www.standardandpoors.com), Moody’s Investors Services (www.moodys.com), and Weiss Ratings, Inc. (www.weissratings.com) are available online and at most public libraries.
Research the complaint record of the company. Contact your state insurance department or visit the website of the National Association of Insurance Commissioners (www.naic.org) which has a database of complaints filed with state regulators.
Find out what others think about the company’s customer service. Consumers rate homeowner insurance companies from J.D. Powers and Associates at www.jdpower.com/homes/insuranceratings.
Once you pay your first insurance premium, make sure you receive a written policy. This tells you the agent forwarded your premium to the insurance company. If you don’t receive a policy within 60 days, contact your agent and the insurance company. |
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