Consumer Reports

In their ads, insurance companies often boast they have the lowest premiums around. The emphasis on price makes it very easy for consumers to fall under the spell of cheap insurance rates."Our gut instinct is to shop for price," says Douglas Heller, an advocate with the Santa Monica, Calif.-based public interest group Consumer Watchdog. "And while we should beware of paying too much for insurance, it is important to know that not all insurance policies or companies are alike."Smart consumers do more than just compare insurance premiums, he says. You want to know how the insurer will treat you after you buy."When you are dealing with a claim, you want an insurance company that will stand by you and meet both its contractual obligations and your expectations in a timely and fair way," says Heller.So, you need to check insurance company ratings and take a few other steps to investigate an insurer before purchasing a policy.See what the regulators have to sayEach state has an insurance reg...

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