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In Southfield, Serving Eastern Michigan & the U.P.

Educational Consumer Tips

Insurance Replacement

Author: Better Business Bureau
Published:

BBBs do not advise consumers on which insurance program they should purchase, since everyone has different individual needs. However, before replacing one's current insurance with a policy from a different company, it would be prudent for a policyholder to:

1. Ask the representative selling replacement insurance for a written sales proposal and comparison disclosure statement, (some states require this) and a copy of the policy or policies being offered. Carefully review this information. Make sure all promises are confirmed in writing.

2. Have your present insurance agent give you a written comparison of your existing insurance with the proposed replacement insurance to assist you in determining whether it is to your advantage to switch to another insurance program.

3. Before you drop your current insurance coverage for another plan, find out if the new coverage is effective immediately. If not, you may wish to keep your current coverage at least until the new policy will pay benefits to you.

4. Always obtain a receipt from any person to whom you release your policies for review.

5. Check with your state insurance commission to make sure that the insurance underwriter or carrier and agent offering replacement insurance are licensed in your state.

6. Buy only the amount of insurance you need and can afford.

7. Unsure about your decision, you may wish to consult an attorney, or financial advisor for advise.