In these uncertain financial times, knowledge is your best policy — especially when it comes to insurance. Here are four useful tips to help Delaware residents better understand their insurance policies:

1. Get Savvy.
Before shopping for a policy, learn as much as you can about insurance. The award-winning “Insure U” consumer-education Web site (www.insureUonline.org) is an unbiased, expert resource to help you understand the types of insurance available, the factors that affect price, and the insurance options for your personal situation.

2. Shop Around; Do Your Homework.
After learning the insurance basics, get premium quotes from several companies for the amount of coverage you require. The Insurance IQ survey found that although many Americans rely on personal experience and recommendations from family and friends when making insurance decisions, nearly 90 percent do not gather information from other, more reliable sources of information — such as their state insurance department. In addition, the NAIC’s Consumer Information Source (https://eapps.naic.org/cis) provides fundamental facts about insurance companies, including complaint ratios, licensing details and key financial data.

3. Before committing: Stop. Call. Confirm.
If you are unsure about an insurer or agent you are working with 1) Stop before signing any paperwork or writing a check; 2) Call the Delaware Department of Insurance (easily reached by phone at 1-800-282-8611) and 3) Confirm the company or agent is legitimate and licensed to do business in your state. Visit the Department of Insurance Web site at http://delawareinsurance.gov. to find out more.

4. Review Your Policy.
Do not wait until you need to file a claim before evaluating the scope of your coverage. The Insurance IQ study found that 60 percent of respondents do not periodically review their policy — that is, they wait until they are filing a claim or renewing their coverage. Twenty-five percent admit rarely or never looking at their policies. By understanding your policies, you can be prepared for any situation and, potentially, save money by avoiding unnecessary costs.

One other important element to remember: Throughout the year, you may encounter changes in employment, salary, geographic location and/or family dynamics. These factors affect your insurance options and the amount of coverage you need. Any time your life situation changes, be sure to review your insurance coverage and make any necessary adjustments.

You can take the Insurance IQ survey at http://delawareinsurance.gov/IIQ/IIQ.shtml.
For more information, contact the Delaware Insurance Department at 800-282-8611

 

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Contacts:
Elliott Jacobson (302) 674-7303; (202) 294-3266 cell
Michael Gould (302) 674-7304