| Tweet |
KNOWLEDGE IS YOUR BEST policy when it comes to insurance — especially in these difficult economic times. Consumers need to be sure that they understand what their insurance policies cover.
By making careful, informed decisions about their insurance, South Carolinians can save money and ensure long-term protection for themselves and their families.
Recently, the National Association of Insurance Commissioners (NAIC) conducted a survey to better understand adults’ knowledge of their insurance plans.
On average, consumers scored only four out of 10 questions correct on the Insurance IQ survey, www.in-sureUonline.org.
Less than half of those surveyed knew that if they leave their job and select the federal Consolidated Budget Reconciliation Act (COBRA) to continue their health benefits, they must pay full cost of the coverage. However, 58 percent are aware that health insurance will not cover their living expenses if they were to become disabled and unable to perform their job duties.Fourteen percent of those surveyed knew that the amount of life insurance typically recommended for individuals is five to seven times your annual salary; 29 percent believe two to four times an annual salary is recommended and almost 40 percent simply did not know.
Many consumers were unaware that the need to have private mortgage insurance (PMI) when purchasing a home depends on the size of the down payment and the lender. Sixty-two percent of consumers were not aware of the three top factors impacting the cost of auto insurance coverage which are accident history, vehicle safety features and geography.
Helpful tips to improve your insurance IQ include being a savvy shopper. Learn as much as you can about insurance before you begin to select the policy that best suits your needs. Please visit the South Carolina Department of Insurance Web site, www.doi.sc.gov or call our Consumer Services Division at 800-768-3467
(toll free only in S.C.) for information.
You may also visit the NAIC consumer education Web site, (www.insureUonline.org) to help you understand the types of insurance available, the factors that affect the price and the insurance options for you and your family.
After you gain a clear understanding of the insurance basics, shop around and get quotes from several companies for the amount of coverage you need.
While many rely on personal experience and recommendations from family and friends, it is important to gather information from additional sources.
Before you purchase your policy, stop, call and confirm. 1) Stop before signing any paperwork or writing a check; 2) Call the S.C. Department of Insurance (800-768-3467); and 3) Confirm the company or agent is legitimate and licensed to do business in South Carolina.
Finally, do not wait until you need to file a claim before evaluating the scope of your coverage. By understanding your policies, you can be prepared and potentially save money by avoiding unnecessary costs.
One additional point 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.
