Let’s face it. Insurance companies can be tricky, but we cannot avoid insurance. In fact, even with their crafty schemes and devious ways, it is still advisable to get insurance whenever you can.
The only way not to get duped by insurance giants is to get informed. Knowing the methods insurance companies use to get the upper hand is good way to protect yourself. Keep in mind that there is no insurance protection against insurance. You are left on your own but it’s enough to get through the challenge. Here are some tips to get you started.
Calling the insurance company is considered as a claim
Sometimes asking for information can get you in trouble. For example, something happened and it caused some damage to your home. You called the insurance provider for information because you forget your deductibles.
This can go to your disadvantage because the company may consider this as a claim. The Comprehensive Loss Underwriting Exchange or CLUE report on your house can get tainted which may affect your chances of getting insurance for your home.
If you have to call and ask for information about your insurance policy, make certain that you are asking universal questions and express that you only want to understand your policy.
Credit score is a huge factor
If you are working with an agent, always make it a point to ask if a company is using your credit standing as a factor to determine the rates to give you. The credit score is an indication of how responsible an individual is. If it is looking great, an insurance company tends to trust you based on the assumption that you are a good payer.
Your policy’s anti-concurrent language
You are confident that you have hurricane insurance to cover you against the flood damage caused by a hurricane. But when the dreadful natural disaster do strike, you’ll be surprised to realize that the flood damage is not even part of your policy.
In the insurance industry, this is far too common than you might think. This is the anti-concurrent language in your homeowner’s insurance policy. The fact that the damaging flood is undoubtedly caused by a hurricane does not matter. Your hurricane insurance does not cover flood damage.
Again, ask your agent to make these things clear to your understanding.
Collision insurance? Think again.
If you have an old car, it is best not to get collision insurance. Your car being ancient is getting closer to your deductible and your insurance company will not pay more than the value of the vehicle. In other words, if your car value has reached the cost of your deductible, you are not getting any cash.
Think about it. These insurance companies need to profit. Therefore, they need to hassle you in any means they can to get low payments and higher profits. Even the policies are written in such a way that it is hard to understand. Always keep vigilant when it comes to your insurance plans and policies.