William Penn Life, 2009 (44. évfolyam, 1-12. szám)
2009-07-01 / 7. szám
MoneywiSe Get smart about insurance When it comes to insurance, knowledge is your best policy from the National Association of Insurance Commissioners According to a survey commissioned by the National Association of Insurance Commissioners (NAIC), even though most Americans (72 percent) feel they have about the right amount of insurance coverage, only 33 percent say they understand the details of the coverage "very well." And, younger adults (ages 18 to 24) are least likely to understand the details of their insurance coverage (20 percent). Luckily, this unfortunate—and often costly-information gap is avoidable. When it comes to insurance, knowledge is your best policy. So, what can you do to get smart about your insurance? 1. Contact your state department of insurance. Your state insurance department is the best source of unbiased information regarding insurance companies and the coverage they offer. Most departments offer free guides that outline your state's insurance laws and regulations and publish premium comparison reports to facilitate the insurance shopping process. To contact your state insurance department, go to the NAIC Web site at www.naic.org, where you will find a map of the United States with links to each state's insurance department Web site. 2. Schedule an annual insurance check-up. Schedule a yearly insurance check-up with your agent 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. Remember, the amount of insurance you need will vary based on your circumstances. Your agent or your state insurance department will be able to tell you what types and levels of coverage your state's laws require you to carry. 3. Ask your insurance provider about discounts. Depending on the kind of insurance you're considering, there are a number of ways to reduce the cost of coverage, such as healthy living, a good driving record, good grades, and special education or training. Other discounts can include: • Multiple policy: Some insurers offer discounts of five 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 Money Links For basic information about all types of insurance-life, health, auto, home, etc.-and how to shop wisely for the coverage you may need, log onto the website of the National Association of Insurance Commissioners at: O www.naic.org the insurer will discount an auto policy. • Long-time policy: If you've had coverage through an insurer for a number of years, ask about a reduced premium. • Higher deductibles: Be sure to ask your insurance agent about the pros and cons of higher deductibles, which can generally mean a lower premium. 4. Shop around for identical products and services. Not every company charges the same rates for coverage. A wise course of action would be to research at least three companies for the best coverage at the best price. Also consider the convenience of dealing with a local agent, compared to the possible cost savings of dealing with a national company without an office in your area. 5. Read your policy carefully! Regardless of the insurer you choose, remember an insurance policy is a legal document. Read the policy application thoroughly before signing it, and never sign a blank form. 6. Honesty will get you the best policy. Provide accurate and complete information on an insurance application to avoid problems later. Premium quotations are based on the information you provide, and your policy could be declared void if information is misrepresented. Errors and omissions can lead to higher premiums or coverage terminations. |WPl| 8 William Penn Life, July 2009
