Advertisement
insurance

Find Out How Insurers Handle Claims

When choosing an insurance company, check its complaint record to see if other consumers are unhappy with its claims process.

If you're in the market for auto, home or health insurance or are thinking about switching insurers to get a better deal, don't focus solely on premiums.

DOWNLOAD: The Kip Tips iPad App

"Trying to save a few dollars in premiums can backfire if your insurer give you a hassle at claim time," writes Kim Lankford in the May issue of Kiplinger's Personal Finance magazine. She recommends that you check out a company's complaint record through the National Association of Insurance Commissioners' Consumer Information Source (www.naic.org/cis). The NAIC gathers complaint data from state insurance departments for health, homeowners, auto and life insurance.

Advertisement - Article continues below

Here's what Kim suggests you look for in a complaint record:

Focus on the complaint ratio, which shows the ratio of the company's U.S. market share of complaints to the company's U.S. market share of premiums for the type of policy you're considering.

Compare that figure with the national median complaint ratio of 1.00. It's a good sign if it's 1.00 or less.

If you've had trouble getting your insurance company to pay a claim, see Kim's tactics to help you claim your cash.

Get 100 of our top money-saving tips by downloading the new iPad app or purchasing the PDF version.

Follow me on Twitter

Advertisement
Advertisement

Most Popular

What Trump's Payroll Tax Cut Will Mean for You
Tax Breaks

What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?
August 13, 2020
5 Tips to Minimize Your Taxes in Retirement
tax planning

5 Tips to Minimize Your Taxes in Retirement

Don’t pay more than you have to. It all starts with a thorough understanding of the basics of how retirement income is taxed.
August 2, 2020
10 Things to Know Before Going to the Hospital (from a Legal Perspective)
personal finance

10 Things to Know Before Going to the Hospital (from a Legal Perspective)

A trip to the ER can be chaotic and scary, but getting your ducks in a row now can definitely help.
August 11, 2020

Recommended

The Insurance Company Denied My Claim. What Should I Do?
insurance

The Insurance Company Denied My Claim. What Should I Do?

A lawyer specializing in insurance bad faith law explains why this happens, and outlines how to fight back.
August 6, 2020
Time for an Insurance Review
Coronavirus and Your Money

Time for an Insurance Review

You may need to update your policies in light of COVID-19.
July 30, 2020
Insurance Question: Say Rioters Destroy My Business, Am I Covered?
insurance

Insurance Question: Say Rioters Destroy My Business, Am I Covered?

If you ask your broker, the answer may be no. But don’t just accept that response. Know what your policy covers, and how to protect yourself.
July 29, 2020
HSAs Get Even Better
Financial Planning

HSAs Get Even Better

A health savings account is a powerful, tax-advantaged tool to cover out-of-pocket medical expenses and a smart way to save for medical expenses in re…
July 3, 2020