Getting smart on auto insurance

BY ELIZABETH LAZAROWITZ
DAILY NEWS BUSINESS WRITER

The National Association of Insurance Commissioners is offering consumers information on home, health, life and auto insurance.

If you spent more time researching your new flat-screen television purchase than you did picking out your health insurance plan, you're not alone.
A fifth of young singles say they would let their auto insurance lapse to save cash, even though they need to have it by law. And half of older families didn't know what happens to their health insurance when they leave a job, according to a poll released yesterday by the National Association of Insurance Commissioners.

To combat some of these potentially damaging insurance mistakes, the NAIC debuted a public education campaign yesterday.

"By its nature, (an insurance policy) is a complex product - some more complex that others - and this is an effort to raise the knowledge of people, regardless of what stage of life they're in," said NAIC president Alessandro Iuppa. "No one is born with an innate knowledge of insurance."

The organization, which is made up of insurance regulators from around the country, is offering information tailored to four groups - "young singles," "young families," "established families," and "empty nesters" - on a new insureuonline.org Web site. Each area offers information and tips on home, health, life and auto insurance. Also, visitors to the Web site can take quizzes on what they learn.

Younger, single people living on their own should consider renters' insurance to protect their property and to shield them from lawsuits since, in many states, they can be held liable if anyone is hurt during or after a party at the home when alcohol is served, the NAIC said.

Younger people also sometimes forego health or disability insurance, which can be financially devastating if they get hurt or become ill, said Diane Koken, Commissioner of the Pennsylvania Insurance Department.

"There's this believe that they're invincible," she said.

For college kids, keeping up good grades will convince some companies to lower their auto insurance premiums. Younger people should also check out insurance costs before they purchase a vehicle, since premiums vary with the type and model of car.

On the other end of the spectrum, seniors may want to scale back their homeowners' coverage if they've decided to downsize their living space, and retirees may be eligible for discounted insurance, since it's assumed they're more likely to be home and watching over their stuff.

While it's important to shop around for the best deal on any policy, watch out for something that seems too good to be true, NAIC CEO Catherine Weatherford said.

Policies that cost 15% to 20% less than others with comparable coverage should set off an alarm, as well as overly aggressive salesmen and unlisted phone numbers, the NAIC said.

Before you sign a policy and hand over a check, you can call 1-866-470-NAIC to find out if both the company and the agent are licensed to sell the kind of insurance you're about to buy.

You can also find out about any complaints filed against the agent and how the company has handled complaints in the past.