Insurance Deals Do's & Don't's
Insurance is a hassle.
A major hassle.
But, the financial consequences of not having insurance are potentially way more destructive – that’s just a fact of life.
So you need insurance, let’s take that as a given and go from there.
Are there some basic rules to what you need to do, or not, in finding and securing a great deal from an insurer, broker or via the Internet?
There certainly are some ‘Do’s and Don’ts’ when it comes to getting the right insurance policy at the right price to protect you against any catastrophic eventualities that could occur.
Right at the top of the list of what you must do:
Firstly, decide what it is that you need rather than want. For example, when choosing a homeowner’s policy, it is likely that your mortgage holder will require you to insure the ‘bricks and mortar’ and may, indeed, insist on a carrier of their choice. That’s all well and good but you need to know the precise market value of your home right now and how much it might cost to replace in today’s terms (not when it was purchased or originally built).
Yet when you look at the contents of your home, you may want the option of replacing that brand new 60” Plasma TV on a ‘like for like’ basis – it is worth making a simple list of all the major ticket items and the smaller ones too – just so that you know what to have covered, and for exactly how much.
It is far worse to be under-insured and fail to get enough money back than to over- insure and be certain.
Obviously, we are all different in the way that we choose service providers and insurance falls into the same category. You might, for instance, choose an insurer by brand reputation, or because your friends use them or simply by the cheapest renewal quote – but whatever your chosen route, do the necessary research.
So rule number two is ‘Don’t Underinsure!
Next: be completely honest with yourself and your insurer about your history – by ‘bending’ the truth you might just void any insurance and having to pay hefty premiums and then get nothing back in the event of a disaster would be doubly infuriating. If your home is a 2400 square foot, timber-framed single story property to which you have added a glazed orangery, tell the insurer. It might cost you an initial extra premium but if you have to claim they might not pay up when an insurance assessor comes to inspect any claimed damage.
So ‘Tell the Truth’ is the third ‘do’.
Something that many of us are resistant to is accepting advice and recommendations – we don’t, generally, like to be seen as sheep. But often, if you are with a brokerage, if an insurer offers advice on the level of limit to set, then they are doing so based on their experience which is, let’s face it, usually greater than our own. Therefore, it is prudent to discuss your requirements and policy with the broker or insurer.
Even if you are buying over the ‘net’ they offer help lines and may come up with a wrinkle you hadn’t thought of. Rule four, therefore, has to be ‘Consider following professional advice when you ask for it.’
Finally in the list of ‘Dos’:
Check the policy and the small print – don’t simply scan over it.
Read it.
Twice.
Really.
The reason it’s called small print, is because its small and contains a lot of stuff that Joe Public finds boring – but it might be that hidden in there somewhere is a black hole down which your premium goes if you haven’t complied with Clause 8, sub Para z. Read the policy AND the small print make sure it’s what you thought you were buying.
Ever wondered how banks and insurance companies can afford those massive skyscraper officers? Well, it’s partly because most of their customers don’t bother with the fine details and get continually stung on small and large fees, penalties and the like.
Next: ‘Don’t believe what you read in the headlines’. In short, fully understand what you are insuring – how big, how much, how valuable and so on. You may have thought you were buying an ‘all risks’ policy, but it could have so many exclusions that it is you taking all the risks, not your carrier.
The old adage, “if it looks too good to be true”, it holds true for insurance just as much as that ‘cheap’ laptop, or automobile, or three-day suit – we all have apocryphal tales of a bargain that proved not to be such a bargain after all. If you are looking for a solid insurance deal, don’t simply go for the cheapest because it’s the cheapest. Make sure that it offers the same as its competitors. Rule number two; ‘Don’t buy cheap if it doesn’t cover all the bases.’
Number three may come as no surprise – like the foolish danger of underinsuring, ‘Don’t underestimate’ the cost of replacement or rebuilding just to get a cheaper quote – it’s a move you will regret if or when disaster strikes.
You can’t expect an insurance carrier to know the value of all your home’s contents so ‘Don’t forget to list all your valuables.’ If necessary, take photos, videos and copies of all receipts and make sure you keep those records updated – doing this after putting in a claim won’t work.
Finally, ‘Don’t be afraid to shop around.’ Many of us are content to accept the first offer that comes along. Often it’s simply too much trouble to look at switching and we don’t have the time, energy or will. Its false economy! If your insurance carrier gives you a quote, ask them to better it, if they won’t, go to a comparison website and check yourself.
By following these insurance fundamentals (‘best practice’, basically) you will vastly minimize the risks, penalties and mistakes that cost (too) many people their livelihoods – yes, not insuring properly can result in personal bankruptcy – every year. Worst of all, these negatively life-changing circumstances could have been easily avoided with a few simple precautionary steps that have been outlined above.
And when it comes to German insurance:
Beim Online Vergleich von Privaten Krankenversicherungen werden immer wieder schwere Fehler gemacht die leicht vermeidbar sind. Mit den richtigen Informationen und einem guten PKV Rechner koennen Sie jederzeit einen Preisvergleich sicher durchfuehren (egal ob anonym oder als Beamter). Selbst die Stiftung Warentest vergleicht Krankenversicherungen von Zeit zu Zeit. Tun Sie es jetzt auch. Weitere Informationen erhalten Sie unter.
