Hussein Westermann posted an update 4 months, 1 week ago
Having insurance should provide you with reassurance. Unfortunately, some insurance firms try to exploit you, avoid their responsibilities, and take the money without providing you your due benefits.
Knowing these under-handed tactics will help you prepare to better navigate the insurance coverage field and select a company you can trust when unforeseen circumstances arise.
To help you while searching, here’s an invaluable guide on five common ways insurance companies try to swindle you.
#1. Unexpected Renewal Price Hikes
Some insurance agencies make an effort to catch you off-guard, raising the price of your plan at renewal time without you noticing.
These insurers make sure to hook you within a too-good-to-be-true offer, then a sneaky price hike without explanation products you’ve carried out to deserve an increased premium.
#2. Low Deductibles, but High Rates
Some providers attempt to persuade you to select a low-deductible policy, assuring you you’ll pay less out-of-pocket in the case of an accident.
The things they don’t let you know will be the math. Picking a lower deductible over lower premiums means you have to pay more within the long-run-unless you’re a very accident-prone driver.
Let’s say an agent sells that you simply $100/month policy on the grounds that you’ll pay just $250 for just one accident.
Though if you could select a $50/month policy and pay a $1,000 deductible, you’d save $450, assuming you merely get one accident a year.
So unless your automotive abilities leave much to become desired, you’re best selecting a higher deductible/lower premium plan.
#3. Understating Your Vehicle’s Value in the Total Loss
In case your car’s an overall loss, your policy may cover a substitute or cash worth of a similar car.
Some companies sell you short by understating your vehicle’s value, pointing to trivial details like paint chips and dings.
In other cases, insurers low-ball you simply by using a “comparable” vehicle-one which has thousands more miles on the clock.
Though low mileage is a vital take into account your vehicle’s value, some insurance firms intentionally ignore this fact to allow them to short-change you in the case of any sort of accident.
#4. Flood vs. Wind Damages
Having coverage for hurricanes is important for homeowners in Florida as well as other storm-sensitive states.
Unfortunately, some companies attempt to benefit from affected homeowners by seeking to mischaracterize wind damage as flood damage.
Always be mindful of what your insurance does and doesn’t cover, and carefully document the type and extent of injury to your house.
#5. Inadequate Coverage of Out-of-Network Visits
For visits to out-of-network doctors, insurers generally pay a proportion of what they look at a “reasonable and customary rate” for healthcare providers within the area-rather than a proportion from the bill.
The problem is when some insurance companies manipulate the info on which they assess “reasonable and customary” rates as a way to pass numerous cost onto consumers.
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