Most individuals work hard to provide for themselves and their families.
Unfortunately, many overlook an essential aspect of protecting the
future — insurance.
What Is Insurance?
An insurance policy is a legal contract between you and an insurance
company to provide financial protection against losses described in
the policy — up to a certain amount of money.
Insurance can cover losses from events such as vehicle accidents,
fire, illness, theft or death. You pay a premium to the insurer, and
in return, the insurer agrees to reimburse you for all or a portion of
the costs of your losses. The insurer agrees to indemnify (compensate)
you for covered loss to your auto, property, life, health or whatever a
policy might cover; you are liable for any
applicable deductibles, co-payments or any damages
in
excess of the policy limits.
Note: This article provides general insurance descriptions. Contact an insurance company for precise information on coverages, limitations and conditions.
Choosing An Insurance Company Before
purchasing insurance carefully assess what you need
to protect; determine the level of coverage you
require; and compare insurance
companies and their policies.
According to the Insurance Information Institute,
consider these factors when selecting an insurance
company.
- Get quotes from at least three insurers.
- Ask about discounts and savings, but pay attention to overall price. A
company that offers few discounts still may
have lower rates.
- Ask if an insurer reduces premiums if you
buy more than one type of insurance from
them.
- Choose a company that is likely to be there when you need it.
- Consult consumer publications, A.M. Best
Insurance Company reports (available in most
libraries) and your state's department of
insurance.
- Contact independent rating agencies for more information.
- Select a company that treats you courteously and fairly.
- Ask family, friends and neighbors what
they like or dislike about their insurers.
- Visit your state's department of insurance Web site to find out whether
complaints have been filed against a particular company.
- Visit your state's department of insurance
Web site to learn if a company is licensed in
the state and covered by the state's guaranty
fund which pays claims in the event the
company defaults. Buying from a company
licensed in your state means your state's
department of insurance can
help if there is a problem.
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Auto
Insurance
Auto
Insurance