6 Tips for Getting Smart about Insurance
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| 1. Contact the Alabama Department of Insurance |
| The Alabama Department of Insurance exists to
serve you. It is an unbiased source of information on insurance companies and
the coverage they offer. |
| Although each state is different, most offer
free guides that outline your state's insurance laws and regulations. They also
may publish premium comparison reports for your use in shopping for insurance.
Take advantage of the services of the Alabama Department of Insurance and make
yourself a smarter insurance consumer. |
| 2. Select a Carrier with Care |
| You should only deal with licensed insurance
producers who work for companies licensed to sell insurance in Alabama. (Rememeber,
business cards are not proof of license.) The Alabama Department of
Insurance is a great source for information on producer and company licensing
status, complaint history, and financial stability. |
| You would be wise to shop at least three
companies for the best coverage at the best price. You may start by asking
friends and family for recommendations. Another factor to consider is the
convenience and service of dealing with a local producer, compared to a
possible cost savings of dealing with a national company with no office in your
area. Regardless of the carrier you choose, always read the policy application
carefully before signing it... and never sign a blank form. |
| The amount of insurance needed will vary by
person and circumstance. The Alabama Department of Insurance can tell you what
levels are required by law in your state. In general, your property should be
insured for at least 80 percent of its replacement value. When considering life
insurance, one rule of thumb is to buy life insurance that is equal to five to
seven times your annual gross income. |
| Ultimately, it's up to insurance companies to
choose the people they wish to insure. Some companies specialize in low-risk
policies and others in high-risk policies. If a company turns down your request
for coverage, check with other companies. |
| 3. Dig for Discounts |
Depending on the kind of insurance your're
considering, there are a number of ways to reduce the cost of coverage:
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Multiple Policy - Some insurers offer discounts of 5 to 15 percent if you have
two or more policies with them. For instance, if you already have a homeowner's
policy with an insurer, fond out if the insurer will discount an auto policy.
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Safety Equipment - Make certain your insurers know of any safety equipment in
the areas they insure. As an example, if you have an alarm on your home or
auto, you may be entitled to a discount.
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Long-Time Policy - If you've had coverage through an insurer for a number of
years, ask about a reduced premium.
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Healthy Living - Some insurers take your lifestyle into consideration when
determining premiums. For instance, you may reduce the cost of coverage by
stopping smoking, driving more safely, or maintaining a healthly weight.
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Higher Deductibles - A higher deductible generally means a lower premium. But
be sure to ask the producer about the pros and cons of higher deductibles
before making your decision.
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| 4. Makes Claims with Confidence |
| Your first step in making a claim is to review
your policy to be sure the service in question is covered. If you have
questions, contact your producer or policy administrator. |
| Find out who sends in the claim paperwork to the
insurance carrier. If you are responsible for the claim form, send it in as
soon as you get the bill. Confirm all of your information - including policy
number and service dates - prior to mailing it. Be sure to keep a copy of the
claim for your records. |
| Allow a reasonable amount of time for your claim
to be processed. You will be contacted if any additional information is needed
to complete the claim. The insurance company will notify you in writing about
the result of your claim. |
| If you disagree with the insurance company's
decision, follow the company's appeal procedures. Many states require
independent third-party review of health insurance complaints. You may be able
to request external review of your complaint or claim. Although the company may
answer basic questions over the phone, your appeal should be in writing. Take
notes of phone conversations including the time, date, and name of the person
you spoke with. |
| 5. Filing a Complaint |
| If a claim has not been resolved to your
satisfaction, contact the Alabama Department of Insurance. Many times, your
questions can be answered without filing a formal complaint. However, if you
want to file a complaint, you should make your request for assistance to the
department in writing. |
| To assist in processing your request, be sure to
include your name, address, ZIP code, and daytime number. Also include your
policy number and the name of the insurance carrier. If available, it is also
helpful to supply any documentation you have to support your case. Keep a copy
of all documents for future reference. |
| 6. Schedule an Annual Insurance Check-up |
| Use Get Smart Week as your personal call to
action. Schedule a yearly insurance check-up with your producer or insurance
carrier to review ever policy you have...and to look for areas of too much or
too little coverage. In general, you should review your coverage every 12
months or whenever there's a major change in your life (new car, new home,
birth, etc.). |
| At every insurance check-up, don't be afraid to
ask a lot of questions and be sure to take good notes. Try this: Draw a line
down the middle of a piece of paper, titling one side "What I Have" and the
other "What It Means to Me." This will provide you with a handy summary of your
coverage to use for future reference. |
