Low rates are great, but what about the claims process?

You've shopped around online and found the insurance policy with the lowest premiums. It's going to save you so much money each month. But is it really?

Low premiums are just one component of the cost of insurance. Another important component is the claims process. When researching insurance, try to find out the following:

1. How does the company rate at paying out claims? Check online sources including the Better Business Bureau to see what their reputation for claims handling is.

2. What happens to your insurance if you have a claim?  Depending on the nature of the claim, your rates may not change at all or may go up significantly. The insurance carrier may decide not to renew your policy when it expires if you've had multiple claims.

3. How easy (or difficult) is the claims filing process? Can you talk to a real person if you have questions? Do they keep you updated on what's happening with your claim?

Saving money on premiums can be a good thing. However, some companies make up the difference on the claims end by refusing to pay legitimate claims, or dragging out the process. Make sure you do your homework before jumping at the lowest premium.

An independent agent can do all the legwork for you and can recommend a company that provides a good balance between low premiums and good claims service. The agent can also handle whatever red tape you may encounter during the claims process.