In a perfect world, insurance companies would come with no stress at all. You make a claim when you need it, prove that you need it, and get the payout that you deserve. However, it doesn’t always work that way. Here are some insurance-related disasters that should put customers on high alert and ensure that they’re always wary of when they’re getting the deal that they agreed to.
Know what can scarper your claim
Every insurance policy comes with some caveats that could see that you don’t manage a successful claim. For example, take a look at this article on fails that can sink your auto insurance claim, such as not telling your provider about traveling out of country and getting into an accident while abroad. These are commonly known as insurance traps and they exist in every market and they can scrap your claim even if they have nothing to do with the reason that you’re making it in the first place. Be aware of what insurance traps might lie in your policy.
Be prepared to fight
Though it’s unfortunate, the provider isn’t responsible if you fall into one the traps in your policy. However, insurance companies will sometimes argue in bad faith and try to deny you a claim for illegitimate reasons. Read this Darras Law article to see what legal recourse is available to you and to get the coverage you deserve if that happens. Otherwise, you’re best off doing your research ahead of time. Look at the insurance company’s complaints record. If they have a much higher rate of complaints related to denials than the average, you should look at going with another provider.
The costs of unnecessary insurance
One risk you want to avoid as a customer is ending up underinsured by not paying enough for the kind of coverage you need. However, many providers will play on that fear, taking it to the other extreme. Don’t pay for the types of insurance you’re unlikely to ever need, as exemplified by this article from the Balance. If you’re over-insured, you might be paying over the nose for monthly premiums on a policy that you’re never going to make use of.
Unexpected premium raises
Speaking of premiums, customers should expect them to raise from time to time. Sometimes, it’s the result of inflation, sometimes it’s due to a policy change in the industry. However, there are also some factors that can lead to a premium increase that are within your field of influence, as shown by this piece from Kiplinger. For instance, your credit score can impact your premiums. Do what you can to improve your credit, such as removing erroneous marks from your report and paying off your existing debts, and you might be able to reduce your premiums.
Between bad faith denials, insurance traps, unexpected rises in price, and more, an insurance customer has a lot of reason to closely scrutinize their providers. Hopefully, the tips above have made you somewhat more aware of the risks and more prepared to deal with them in future.