Industry Tips
Insurance (General Information)
What all insurance policies have in common is that they are contracts, legal promises that commit parties to certain obligations. They often provide penalties for failure to fulfill those obligations. Since insurance policies are often more complex than most other contracts, ask the agent for a point-by-point clarification of anything you do not understand.
Keep careful copies of all insurance policy paperwork in a safe place such as a safe deposit box. In the case of life insurance, provide a copy to your beneficiary and the attorney whom you designate to handle your estate.
To get the best deal, be willing to compare companies and rates. Many companies offer discounts for taking multiple policies from that company, like an auto and homeowner's policy. However, rates should not be the only consideration in selecting a policy. Ease of accessibility of the agency and locations for claims processing should be a considered as well.
If you purchase a policy on the Internet, look for the company's privacy policy and a brick and mortar address. But no matter how you make your purchase, it is a good idea to get a BBB report on that company. Use the company's phone number to get information.
Since many insurance policies are sold in customers' homes, customers are entitled to take advantage of a three day cooling off period. During that time they may revoke their decision to purchase a policy without cost.
For further information, each state has an insurance commissioner who oversees insurance sales and practices in your state. Stay on the line to ask the Customer Service Specialist for contact information or BBB brochures about buying insurance.
