Five Things Your Insurance Company Won't Tell You

Thursday, 21 Oct 2010 09:23 AM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Here are some of the best kept secrets of insurance companies, the knowledge of which will help you get a better price when shopping for insurance or filing an insurance claim:

1. It’s more of a business and less of a customer service: One of the best kept insurance companies’ secrets is that at the end of the day, they mean business. The insurance companies are not always concerned with your best interest, but operate with the intention of making a profit and improving their bottom line. Selling an insurance policy with a higher premium gives higher commission to insurance agents — this is one of the most common tricks of insurance agents. They do not explain the limitations or exclusions that are mentioned in fine print.

2. Credit history plays an important role in your premium quotes: The way an insurance agent may trick you is by increasing the policy premium or adding exclusions. What the insurer won’t tell you is that they are charging a high premium on your policy due to your poor credit history. Also, the insurer won’t tell you that the premium can be lowered if there is an improvement in credit history. You will continue to pay high premiums for years, long after your credit history has improved. This provides huge profits for insurance companies.

3. Claims adjusters can make or break the deal for you: Another example of insurance agent tricks is to convince customers to buy high coverage. What the insurer won’t tell you is that the claims adjusters are instructed to settle the claim as soon as they realize that the claim proceeds may continue to increase. This is one of the most important health insurance tips and also one of the best kept auto insurance secrets. In a health insurance claim or an auto claim where there is a bodily injury, the chances are that the medical treatment cost may increase as long as the claim is kept open. So, the claims adjusters try to settle the claim for a lump sum. This saves an enormous amount of money for the company.

4. You are forced to take unwanted coverage: An insurance agent may trick customers into adding extra coverage for a few dollars of extra premium. Most of the extra coverage comes with a lot of exclusions. Extra coverage has loopholes through which the insurance company can escape payment. Unless one really understands the requirement, one should not fall prey to these insurance agent tricks.

5. There is room for negotiation: Often, an insurance agent tricks a customer into believing that he or she is offering you the best rate for an insurance plan. What insurers don’t tell you is that there is always room for negotiation. If you negotiate or bargain, they may throw in additional coverage or reduce the premium by a few dollars.

Keep these insurance companies’ secrets in mind and bargain for a better price on your insurance.


© Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink

PLEASE NOTE: All information presented on Newsmax.com is for informational purposes only. It is not specific medical advice for any individual. All answers to reader questions are provided for informational purposes only. All information presented on our websites should not be construed as medical consultation or instruction. You should take no action solely on the basis of this publication’s contents. Readers are advised to consult a health professional about any issue regarding their health and well-being. While the information found on our websites is believed to be sensible and accurate based on the author’s best judgment, readers who fail to seek counsel from appropriate health professionals assume risk of any potential ill effects. The opinions expressed in Newsmaxhealth.com and Newsmax.com do not necessarily reflect those of Newsmax Media. Please note that this advice is generic and not specific to any individual. You should consult with your doctor before undertaking any medical or nutritional course of action.

Keeping you up to speed on Lifestyle, health, and money-saving tips
 
 
Get me on Fast Features
Keeping you up to speed on Lifestyle, health, and money-saving tips
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved