Welcome to Tea with DidiFeb 23, 2020
Hussein Keating posted an update 1 year, 3 months ago
Having insurance should provide you with peace of mind. Unfortunately, some insurance firms make an effort to exploit you, avoid their responsibilities, and bring your money without supplying you with your due benefits.
Knowing these under-handed tactics will help you prepare to improve navigate the insurance policy field and select a service provider you’ll be able to count on when unforeseen circumstances arise.
That will help you you’ll need, here’s a priceless guide on five common ways insurance companies try to rip you off.
#1. Unexpected Renewal Price Hikes
Some insurance companies try and catch you off-guard, raising the cost of your plan at renewal time without you noticing.
These insurers make sure to hook you within a too-good-to-be-true offer, accompanied by a sneaky price hike with no explanation of what you’ve implemented to deserve a better premium.
#2. Low Deductibles, but High Rates
Some providers make an effort to persuade you to choose a low-deductible policy, assuring you you’ll pay less out-of-pocket in the eventuality of any sort of accident.
The things they don’t show you will be the math. Picking a lower deductible over lower premiums means you pay more in the long-run-unless you’re an incredibly accident-prone driver.
Let’s say an agent sells you a $100/month policy because that you’ll just pay $250 for one accident.
However if you simply were to go with a $50/month policy and pay a $1,000 deductible, you’d save $450, assuming you simply have one accident a year.
So unless your ability to drive leave much to get desired, you’re best using a higher deductible/lower premium plan.
#3. Understating Your Vehicle’s Value in the Total Loss
If your car’s an overall loss, your policy may cover a substitute or cash worth of a similar car.
Some companies try to sell you short by understating your vehicle’s value, pointing to trivial details like paint chips and dings.
Other times, insurers low-ball you using a “comparable” vehicle-one which has thousands more miles for the clock.
Although low mileage is a factor in your vehicle’s value, some insurance carriers intentionally read over that fact for them to short-change you in the event of a car accident.
#4. Flood vs. Wind Damages
Having coverage for hurricanes is essential for homeowners in Florida and also other storm-sensitive states.
Unfortunately, some companies try and take advantage of affected homeowners by wanting to mischaracterize wind damage as flood damage.
Be aware of what your insurance does and doesn’t cover, and punctiliously document the type and extent of damage to your house.
#5. Inadequate Coverage of Out-of-Network Visits
For appointments with out-of-network doctors, insurers generally pay a proportion products they look at a “reasonable and customary rate” for healthcare providers in the area-rather compared to a proportion from the bill.
The thing is when some insurance firms manipulate the data which they assess “reasonable and customary” rates to be able to pass more of the cost onto consumers.
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