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Educational Consumer Tips

Insurance (General Information)

Author: Better Business Bureau
Published:

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 businesses and rates. Many businesses offer discounts for taking multiple policies from that business, 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 business' 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 Business Review on that business. 

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.  

Questions and Comments

Question Submitted 11/25/2014

I have lived in California for 72 years...yet I have not heard of your company in the medical Insurance business here... My zip is 90277...Los Angeles county... Is the information I obtained..that yes your medical insurance is available to me...in Redondo Beach? I am interested in Plan F...and am wondering if the majority of doctors will accept your insurance openly. I am currently with Anthem PPO, and they are cancelling that plan, so I am shopping. Please advise... ***** 

BBB's Answer:

If you are inquiring on a specific business, BBB can assist you with information on that business at www.BBB.org. If you are looking for a general list that accepts your insurance, you may want to contact the plans administrator, or your local department of Insurance.
Disclaimer:
Views expressed on this page are those of the individual author and do not necessarily reflect the views of Better Business Bureau.

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