Finding Lower Rates Important in Tough Economy

Many Americans are facing the prospect of a holiday season with less money in the bank and a less-than-optimistic view of their chances to make it back in the New Year. The struggling real estate market, the stock market plunge, continuing job losses—all are affecting the average consumer’s sense of financial well-being.

While there are a number of strategies that can help struggling consumers survive this downturn, one of the easiest ways they can save money is to look at their auto, homeowners, term life, health and other insurance policies and make sure they’re not paying more than they have to.

“Millions of Americans could save money on their insurance if they shopped around,” says Hussein Enan, CEO of insurance comparison Web site InsWeb.com. “Whether with an agent, by phone, or online, comparing insurance quotes from multiple providers is one of the easiest ways families can make sure they’re not paying too much. It’s also a great opportunity for them to review their policies to make sure their coverage options and amounts are appropriate—something most families should do every year regardless of whether they’re comparing providers.”

With hundreds of insurance companies in the United States, most consumers have a lot of choices when purchasing insurance. And because different insurers often specialize in insuring different types of customers, consumers who haven’t shopped around in a while might be surprised by what they find.

For example, if a consumer shopping for auto insurance has purchased a new vehicle, moved, or had an accident or moving violation come off their driving record, insurance companies that previously did not offer competitive rates may offer the best quotes now. The same holds true for other types of insurance as well.

Because insurance is such a significant part of most Americans’ budgets, saving a little on any type of policy can make a big difference month to month.

According to data from the National Association of Insurance Commissioners (NAIC.org), Americans pay an average of about $800 per year to insure each vehicle they own and $800 per year to insure their homes.

By shopping around and saving 10 or even 15 percent on those policies, families could save hundreds of dollars. In a challenging economic environment, those savings could make the difference between just scraping by and breathing easy.

Calif. Brooke Customers Should Verify Policies

California Insurance Commissioner Steve Poizner is encouraging California consumers who have purchased insurance policies through Brooke franchises to verify their coverage, in light of recent closures at Brooke. It is unlikely that an insurance policy held by a California resident will be impacted, but consumers should take simple steps to verify their policy status.

"The Department of Insurance continues to closely monitor the Brooke situation, and is formally requesting that insurers reach out to policyholders who obtained coverage through Brooke," said Commissioner Poizner. "I encourage consumers who purchased policies through Brooke to verify their coverage through their insurance company, or through the Brooke agent that sold the coverage. If anyone has a problem or a question, they should contact the Department of Insurance at 800-927-HELP."

Brooke Corp., an Overland Park, Kansas-based company, operates an insurance agency franchise business in California, and throughout half of the country. In a typical transaction, a consumer buys insurance from a franchisee and the premium for the coverage is forwarded to Brooke in Kansas, where the coverage is placed with an insurance company.

There are upwards of 200 franchised agencies operating in California. The insurance agent's offices may advertise as Brooke Insurance and Financial Services, Brooke Auto Insurance, or a variation of Brooke Insurance.

On Sept. 15, 2008, a Kansas federal judge placed control of Brooke's business operations in the hands of a special master. On Oct. 28, 2008, Brooke filed for Chapter 11 protection with the U.S. Bankruptcy Court in Kansas City, Kansas.

While these circumstances are unsettling, they should not affect any current coverage held by a California resident. However, Poizner believes that California insurance consumers should be aware of the situation, and that they should take reasonable steps to verify coverage purchased through a Brooke agent.

State Farm Hits 80 Million Policies Milestone

State Farm Chairman and CEO, Edward Rust Jr. announced the company now has more than 80 million policies and investment and bank accounts in place.

Monday was State Farm's 86th birthday and Rust revealed the milestone in a broadcast to the company's 67,000 employees and 17,000 agents across the United States and in Canada.

"State Farm reached one million insurance policies in 1943. Achieving the 80 million mark is a significant accomplishment for us as a company and a tribute to the dedication of our people and to the trust placed in us by our customers," said Rust.

Rust became CEO in 1985 when State Farm had about 45 million policies on the books. The company has added more than 35 million policies and accounts since then and maintains its position as the largest automobile and home insurer in the United States.

"We're proud that our 1.9 million account holders at State Farm Bank have helped us get to where we are today. Offering a range of investment and bank products, in addition to our auto, fire, life, and health policies, has allowed us to remain number one in insurance and a leader in financial services," said Rust.

State Farm sold its first policy in 1922. Back then, the company's founder, G.J. Mecherle set the bar high saying, "If I can sell one, I can sell a million."

Turns out he was right – more than 80 times over.

Claims Delays Tops Complaint List

Important, but sometimes difficult, filing a claim can be one of the most frustrating processes during a crisis or following a major disaster. A delay in the claims process was the No. 1 complaint of insurance consumers in 2007, according to the National Association of Insurance Commissioners (NAIC).

To help you avoid problems getting your claims paid, NAIC offers these tips:

Know Your Policy
Understand what your policy says. The policy is a contract between you and your insurance company. Know what’s covered, what’s excluded and what the deductibles are.

File Claims as Soon as Possible
Don’t let the bills or receipts pile up. Call your agent or your company’s claims hotline as soon as possible. Your policy may require you to make the notification within a time frame.

Provide Complete, Correct Information
Be certain to give your insurance company all the information it needs. Incorrect or incomplete information will only cause a delay in processing your claim.

Keep Copies of all Correspondence
Whenever you communicate with your insurance company, be sure to keep copies and records of all correspondence. Write down information about your telephone and in-person contacts, including the date, name and title of the person you spoke to and what was said. Also, keep a record of your time and expenses.

Ask Questions
If there is a disagreement about the claim settlement, ask the company for the specific language in the policy that is in the question. Find out if the disagreement is because you and the insurance company interpret your policy differently. If this disagreement results in a claim denial, make sure you obtain a written letter explaining the reason for the denial and the specific policy language under which the claim is being denied.

Don’t Rush into a Settlement
If the first offer made by an insurance company does not meet your expectations, be prepared to negotiate to get a fair settlement. If you have any questions regarding the fairness of your settlement, seek professional advice.

Auto and Homeowners Claims
Auto and homeowners policies might require you to make temporary repairs to protect your property from further damage. Your policy should cover the cost of these temporary repairs, so keep all receipts. Also, maintain any damaged personal property for the adjuster to inspect. If possible, take photographs or video of the damage before making temporary repairs.

Other Tips for Filing Auto or Homeowners Claims:

• Don’t make permanent repairs. An insurance company may deny a claim if you make permanent repairs before the damage is inspected.
• If possible, determine what it will cost to repair your property before you meet with the claims adjuster.
• Provide the claims adjuster with records of any improvements you made to your property.
• Ask the claims adjuster for an itemized explanation of the claim settlement offer.

Accident and Health Claims
Ask your physician to provide your insurance company with details about your treatment, medical conditions and prognosis.

If you suspect a provider is overcharging, ask the insurance company to audit the bill and verify whether the provider used the proper billing procedure.