Insurance is something that if you don’t have it, you will suffer financially should something unfortunate happen to you. The fact of the matter is that insurance companies are there to make money off of you and they are more than happy to see your premiums paid through every month, but when it comes down to it they actually try their best not to do what their policies claim. If you are thinking about getting insured, or if you already have a policy, here are 7 things insurance companies don’t want you to know.
1. Higher premiums do not always equal higher coverage
You may be forgiven for thinking that the amount you pay for your premiums is directly related to the amount of coverage you will get. This is not necessarily the case. It is true that premiums are worked out in part by the amount of coverage you take out, but insurers also look at a wide range of factors such as your credit rating and risk rating, for example. To avoid coming up short, make sure you know exactly how your payment plan is worked out.
2. They aren’t always going to pay out
Insurance companies are great at finding the loopholes in the terms and conditions in the contracts so that they either don’t have to pay the full amount, or they don’t have to pay at all. You can see how this can be frustrating if you are claiming from health insurance or income protection insurance where you really need the money. To avoid this hassle, always make sure that you know exactly what you are covered for.
3. You have to make a contribution to the claim
Insurance is not just a matter of calling up the company and claiming when you need money. More often than not there are deductibles, and this means that no matter what happens you still have to pay a portion of the costs despite the fact that you have been paying the company every month. What’s worse is that some companies will refuse to pay their portion until you have paid yours, leaving you with a financial mess.
4. There is discrimination no matter how you look at it
The new thing now is for companies to say that they do not discriminate and that they treat all clients as equals, but this is not the case. The mere industry of insurance relies on weighing up the risks and the probabilities of things happening. With care insurance, for example, a young male driver will invariably ending up paying more for insurance because they are seen to be high risk drivers who are most likely to be involved in accidents. With medical insurance, the more illnesses you have, the higher your premiums will end up being.
5. Insurance companies to not go that extra mile
Insurance is based on the fact that you never know what is going to happen so you’ll never know when you need cash. Insurance companies will usually go along with paying for common things, but as soon as it is something they aren’t used to they will claim that it is not covered. With pet insurance, for example, exotic pets or rare conditions may not be covered.
6. Insurers cannot stop coverage on a whim without a reason
Many people have been left to deal with massive costs because their insurers have decided to drop them. There are two things you need to know about being kicked out of policies. The first is that the company has to give you 30 days’ notice so they cannot just stop coverage instantly. The second thing you need to know is that they have to have a valid reason, and this is usually stated in the terms of the contract.
7. There is always a better offer
Insurers love to tell you that they have the best deal and that you won’t find a better one anywhere else. The truth is that because of the amount of companies out there, there is stiff competition, and this means that they are forced to offer more attractive deals if they hope to secure clients.