Evaluating Insurance Companies

An important part of finding cheap health insurance is evaluating prospective insurance companies. Here are some key criteria you will want to use in deciding on an insurer.

Location

Cheap health insurance premiums will vary widely by state. For example, New York has some of the highest-priced individual insurance plans in the country because of its guaranteed-issue policy that requires insurers to insure all applicants, regardless of their health status. When shopping for cheap health insurance, your best bet is to start your research with your state's department of insurance website. This site should list valuable information about what companies offer cheap health insurance and how much individual and family plans cost on average. The site might also list alternative cheap health insurance plans subsidized by the state if you meet certain income requirements.

Think about a Test Drive

Most consumers in the market for cheap health insurance don't realize that many companies offer what are called "free looks," which are the equivalent of a free trial period for an insurance plan. A free look will allow you to test out a cheap health insurance plan for a certain period of time, and, if you are unsatisfied, you can request a refund. You might have anywhere from one to six weeks to ask for a refund, as restrictions and guidelines will vary widely by insurer. Make sure you know exactly what the guidelines are for your free look before you agree.

Financial Stability

Whether you're shopping for cheap health insurance, car insurance, or a new homeowner's insurance policy, you should always consider the financial health of prospective insurers. You can find this information in financial indexes like Standard & Poor's, A.M. Best, or Moody's. These indexes will give you a good idea of how an insurance company is performing currently and how it's expected to fare in the future. Make sure you choose a cheap health insurance plan from a company with a robust financial outlook.