Federal and state health insurance laws protect policy holders in a number of ways. Insurance companies can only offer certain types of coverage and must price their policies in a fair, consistent way, and claims can't be denied unless a health insurance buyer presents false information when purchasing a policy. Some health insurance laws are specifically designed to protect consumer freedom, which makes the buying process easier.

This is particularly true for state laws, as insurance companies have to abide by state regulations to do business. The most common type of state health insurance law is a "free look" law, which allows buyers to cancel their health insurance policies within a certain period of time for a full refund of their premiums. This helps consumers evaluate a variety of health insurance choices without a lapse in coverage, as a buyer can buy a health insurance policy, look over the coverage and investigate other options while retaining the right to switch to a different provider. Free look periods are generally very short, however. In most states, the period is either ten business days or fourteen standard days (essentially the same amount of time, unless the purchase period includes a holiday). Some states may not require insurance companies to offer this type of provision in their contracts. As such, buyers should contact insurers to inquire about free look periods before buying a policy, as otherwise, policy premiums and cancellation charges can apply to policy holders who switch.

Federal regulations can also help a health insurance buyer to find a high-quality policy with plenty of coverage options. According to federal law, health insurance companies can't offer discounts to specific sub-groups of insurance buyers, for instance homeowners or buyers with other types of policies through the same insurer. Since discounts aren't allowed, health insurance companies have to figure premiums for individual customers in the same way. Insurance companies must also offer the same coverage options to different sub-groups. This protects a health insurance buyer's freedom to find a great policy, because without discounts programs and restricted coverage offerings, a buyer can easily look at several policies to find the best coverage at an affordable rate.

Before looking for health insurance, all buyers should read about their state insurance laws. A brief look into insurance regulations can provide tremendous peace of mind while shopping and can give a health insurance buyer with tools for keeping rates low. Health insurance can be expensive for some households, but coverage is much easier to select thanks to state and federal regulations. By looking for health insurance online and comparing quotes, buyers can find perfect coverage to keep their households financially protected.