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. (Remember, 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 you're considering, there are a number of ways
to reduce the cost of coverage:
- 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, find out if the insurer will discount an auto policy.
- 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.
- Long-Time Policy - If you've had coverage through an insurer for a number of years,
ask about a reduced premium.
- 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 healthy weight.
- 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.
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 every 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.