1. Do not buy the first policy you find. With most things you buy, you shop around and compare prices and features. Do the same with insurance. Always obtain quotes from several companies and compare benefits and rates before you pay your first premium.
2. Be careful to only buy from authorized companies and agents. Unauthorized insurance operations are illegal, and their policyholders are unprotected if they go broke. You can verify this information by calling the Insurance Department.
3. Be sure to look into an agent's as well as a company's credibility. Low premiums do you no good if you receive bad service or the company is unable to cover your claim.
4. Fill out your application carefully. Incorrect, incomplete or false information on your application can jeopardize your insurance coverage. It is a crime to supply false information on an insurance application or claim. Don't let an agent convince you to say anything or file information that is not true.
5. Never pay for your premium in cash. Always pay insurance premiums by check or money order. Whenever possible, make your payment to the insurance company, instead of the agent.
6. Expect a copy of your policy from your agent in a reasonable amount of time.
7. Read your policy immediately to verify that it contains the coverage you discussed with your agent. If not, contact your agent immediately or return your policy.
8. Remember there is a free-look period in which you have time to review a policy once you have received it. All life and health policies must have a free-look period of at least 10 days, although some may be longer.
9. Keep copies of all insurance records including copies of all premium payments. Store extra copies in a safe-deposit box, in a water-proof and fire-proof container, or with a friend or attorney.
10. Call the Louisiana Department of Insurance's toll-free hotline 1-800-259-5300 or 5301 or 342-0895 in Baton Rouge to ask about a company's or agent's license status, A.M. Best rating, complaint history, or to file a complaint.