How To Avoid Insurance Scams
Although there are many very honest and
excellent insurance companies and agents, there are also some who want to take
away as much of your money as possible whilst giving you little or no real
cover. It is important that you know about some of the various insurance scams
and how to avoid them, as this will save you money and also give you the peace
of mind that you are covered should anything happen and you need to
claim.
Misleading policies
Perhaps the biggest insurance scam to
avoid is being suckered into buying a policy that you do not really want or that
does not give you what you have asked for. This sort of scam is often the
hardest to avoid, because it is not just a case of people tricking you on
purpose. You can also be the victim of insurance sales people who simply do not
listen to your needs and do not have the right expertise to help you. If you are
offered a policy but it seems confusing or not what you want, then do not sign
for it.
Claims denied
One problem that people find when they use a
poor insurance company is that when they need to claim back off their insurance
their claim is denied. Some insurance companies simply do not have the money to
pay out your claim, and hope that you will never need to claim for such large
amounts. Before buying any type of insurance make sure that you research the
insurer and confirm that they can and will pay out for eligible
claims.
Unnecessary clauses
One problem that many people have is
that they end up with an insurance policy that gives them cover for things that
they have no use for. For example, you might get some travel insurance but end
up paying ?15 more for it because it includes extreme sports cover. Many
insurers use the technique of including everything that you may or may not need
and hope that you won't query these items. Make sure that before you sign any
agreement you look at what you are covered for, and if there are things you know
that you do not need then get them removed. This may help you get a lower price
for your insurance.
Too much small print
Another way that insurers
can trick you is by putting the important issues of your insurance in the
smallest print possible. These insurers hope that you will not read this small
print or will overlook something that is making them extra money or leaving you
without cover. Again, check all of the clauses in the contract, especially the
small print. If there is anything you do not like then get it changed or do not
sign.
Insurance you do not know about
One of the most frequently
used ploys is to sell you insurance that you do not even know you are paying
for. This is usually done by lending institutions that include payment
protection insurance in your loan payments without your explicit knowledge,
meaning that you pay for insurance that you might not want or even need. If you
get a loan make sure you are not paying extra for insurance that you do not
need. If you read through things carefully and seek good independent advice then
you won't be caught out by these insurance scams.
About the Author
Peter Kenny is a writer for creditcards-gb For
additional articles and an extensive resource for everything about credit cards,
please visit us at http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Insurance/