It’s easy to trust your insurance company to act in your best interest. After all, the term “insurance” is supposed to give you some peace of mind. But the bottom line is that insurance companies are in it for one thing: profit. While they might call their use of loopholes to pad their pockets “good business,” I call it “scamming.”
I’ve broken these scams up into three categories -- home, car and health -- to help you be aware of all the ways in which insurance companies may try to pull the wool over your eyes.
home
The company’s adjuster doesn’t give you the best estimate
Don’t make the mistake of thinking that an adjuster works for you. He doesn’t. Adjusters make money by saving the company money, not by helping you. You have the right to your own adjuster, and your contract should tell you this, but no insurance employee will point this out for you. So when you demand your own independent adjuster, you must be firm.You are forced to buy extra policies because you live in a high-risk area
Unfortunately, the type of coverage you could end up needing the most may not be included in your area. For example, if you live in a flood zone, your standard policy probably won’t cover flood insurance. In other words, you need an “extra” policy. Clever, huh? Whether or not you buy it is completely up to you, but remember to read the fine print on your policy before making a decision. Assuming that you’re automatically covered is a recipe for disaster.A bad credit report increases your premiums
It may sound strange, but insurers use your credit report to calculate your premiums. Like with so many financial affairs, it pays to keep an eye on your credit score, pay your bills on time and borrow only as much as you can afford. Now you have another good reason to check your credit report and stay on top of your finances: to maintain low insurance premiums.car
You aren’t given the best price
Being told that you’re getting the best price on your auto insurance isn’t exactly information that you can take to the bank. Remember: A salesman is giving you this information, so it pays to be just as wary when you’re buying auto insurance as you are when you’re buying the actual car. To find the best price, use an agent, double check his work with another agent, and finally, check their estimates against quotes you find online.You end up paying twice when you cancel your policy
You’ll probably change auto insurance more often than any other type of insurance, and when you do, you need to keep your eye on the ball. Most policies require you to cancel in writing with proper 30-day notice, but check your policy to be sure or you could end up paying two premiums in the same month.The company encourages you to use its mechanic
Insurance companies will want you to go with their mechanic to keep their costs down, but you don’t have to do this. They can make suggestions, but you’re entitled to use your own mechanic as long as he makes repairs at a reasonable rate.health
You are encouraged to take supplemental policies
Many companies will try to make you believe that supplemental policies are necessary. This is not always true; in fact, the services that the supplemental policies cover may already be covered by your current health insurance plan. Get absolute verification from your policy carrier before you buy a supplemental.You are led to believe you aren’t covered after you lose your job
If you have health insurance through work, you might not necessarily lose your benefits right away when you lose your job. If your company employs more than 20 people, a law called COBRA allows you to stay covered for 18 months after you leave -- at your own expense. Check with your HR director at work to find out how COBRA works so you can stay covered while you look for a new job.You believe the insurance company’s decision is final
Many states allow you to appeal an insurer’s decision to an independent review board. If your state doesn’t let you do this, you can always fight the insurance company in court. But before you hire a lawyer, remember that all states regulate insurance; find your state insurance regulator’s website and learn what your rights are. And keep in mind that if you want to challenge a final decision by an insurer, whether you go to court or a review board, you’ll need to act quickly, as most insurers and states set strict deadlines for filing an appeal.avoiding insurance scams
You’ve probably noticed that dealing with insurance companies involves a lot of homework. Well, you’re right. Truth be told, it can almost be a full-time job. While doing so much work may not be fun, it will save you money in the long run. You must remember two things. First, document everything. Second, the squeaky wheel gets the grease. The more you show them that you’re not going to back away, the more likely they will give you what you are rightfully entitled to.Resources:
http://www.momscape.com/articles/protecting_yourself_when_you_deal_with_insurance_companies.htm
http://www.nachi.org/homeinsurancetips.htm
http://www.collision-insight.com/company/insurtip.htm
http://www.edmunds.com/apps/vdpcontainers/do/vdp/articleId=45093/pageNumber=1
http://www.healthinsurance.org/consumertips.html
http://money.cnn.com/pf/101/lessons/16/page4.html
http://www.insurance4usa.com/insurancetip49.cfm
http://info.insure.com/health/claimdenial.html
0 comments:
Publicar un comentario