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Insurance Buying Tips

Many people tend to judge insurance by the cost of the premium, comparing and ultimately choosing the cheapest policy.

No matter how low a premium may be, this does not mean that you will have good insurance coverage. If the insurance company cannot cover your claim in the event you are in an accident, then the low premium was not to your advantage.

Find an insurance company that is financially sound, has a history of providing good service and charges a fair rate.

• Shop around for a policy that fits your needs.
• Do not buy the first policy you hear about.
• Get quotes from several companies before you sign paperwork or pay a premium.
• Be aware of insurance scam artists and unauthorized insurance operations.
• Buy only from authorized insurance companies and producers. There are unauthorized companies which are illegal that leave their policyholders unprotected if the company goes broke.

If you would like to check on a company, call the Louisiana Department of Insurance. They can answer many of your questions including:

• Am I buying from a legitimate company?
  You can ask about a company's or producer's license status.
• Will the company be around to pay your claims?
  You can ask for the company's financial letter grade from at least one national rating firm.
• Does the company treat policyholders fairly?
  Ask about a company's and producer's complaint history and compare it with others.

All information courtesy of: Louisiana Department of Insurance's Publication - Consumer's Guide to Auto Insurance