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Sage Advice on How to Avoid Your Insurer’s Dirty Tricks

Insurance is one of those areas of life we all love to hate. And it’s not surprising, really. It seems we pay into a vast array of different plans and either never get to use it, or don’t get the compensation we think we deserve when we make a claim.

Similarly, if you think you can get away without being insured, Murphy’s Law suggests you won’t for long! It’s almost guaranteed that you will have an accident or break something when you don’t have any coverage.

All of this causes a huge problem. Because many of us have a natural distrust of insurance companies, we tend to treat it with a little disdain.

But the reality is, you will be opening yourself up for major issues later on down the line. With this in mind, here are some of the things you need to avoid when taking out insurance policies – let’s take a closer look.

The ‘everything is fine’ mindset

Bad things happen every day, to the vast majority of the world’s population. You might have been lucky up until now, but the reality is that any event – even the ones you hear about on the news – could possibly happen to you next.

If you treat your insurance as an afterthought, you can expect the insurance company to do the same to you when the inevitable happens.

The ‘I’m covered’ mindset

It’s not enough to take out insurance coverage. You also need to know what’s in your policy.

For example, as you can see from the rather checkered past of Unum insurance claims, you won’t always receive disability benefits if you become unable to work after a disabling illness or injury.

It’s the same with simple household insurance. Every time you buy a new product you should be informing your insurers, or you may not get the coverage you need in the event something goes wrong.

The ‘my employer has insurance’ mindset

Everyone should be happy to have insurance from their employer, of course. But is it enough?

The reality is that you should never rely on your employer to give your family what you need in the event of a serious accident.

It’s vital that you have your own, separate plans in place – life insurance for those with a family to support, for example. You can never guarantee your family will be taken care of if the worst happens, for sure. But by taking out separate policies you will be increasing the chances of their financial security.

THE ‘AUTO-RENEW’ MINDSET

It’s convenient to just let your insurance renew each year. But are you getting the best deal? And are there better policies out there?

No-claims bonuses aren’t always worthwhile. In fact, by taking out an auto insurance policy 30 days in advance of when you need it, you could actually get a better deal.

With other types of insurance like life insurance, it’s always worth doing your research to check that you’re getting the best policy for your circumstances. Some may be more lenient when it comes to certain health conditions, or may pay out more. As this PHP agency review outlines, there are services out there that can educate you and help you choose the right policy – consider using these to periodically shop around and find the best policy. 

The ‘cheapest deal’ mindset

Everyone loves a great deal – but is it worth it when it comes to insurance?

The truth is that good coverage for a rock bottom price is rarer than hen’s teeth.

The ‘no small print’ mindset

Finally, make sure you read the small print.

Ignoring the small print is something we’re all guilty of. And while insurance policy documents are possibly the most boring thing to read on the planet, you need to go through it. All of it.

Failure to do so will result in huge disappointment – and possible financial loss – for you.