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Things you must know when Buying Insurance

by Dave

Purchasing an insurance policy involves a good amount of risk if not done correctly. But this should not deter you from buying one. Under prevailing circumstances the biggest risk would be to remain uninsured only to avoid certain hazards. A little survey and these risks can be tackled with ease. But you really should invest some amount of your precious time before you buy a policy.

To handle the so-called dangers associated with insurance, it is necessary to know what they are. How do you fight your enemies unless you know who they are?

5 Things to know

More than often, it is at the time of filing a claim that consumers have maximum complaints. To make the entire experience convenient and beneficial it is necessary that you have done your part of the job right. Here are the things you need to be aware of:

  1. Underinsurance: Often consumers don’t insure their belonging adequately. Being under-insured means you’re at lose from both sides. It is also necessary to understand the amount of risk you carry along with the excess payable on the event of any accident. Obviously, the greater the excess the more risk you carry.
  2. Attempts to save on premiums: It is advisable not to compromise with the coverage only to reduce the premium amount. You might be saving a few dollars this way, but this might cost you hard on the event of any mishap.
  3. On time payment of premium: It is must to pay premium on time. Insurance companies do allow a minimum grace period, if that is crossed you can hardly get any help.
  4. Timeframe for claims to be filed: There is a timeframe within which the claim has to be filed. On most occasions the time is 24-48 hours since the event had taken place.
  5. Nitti-gritty before you file claim: Often, insurance companies demands the insured individual to report to the police before filing the claim. You forget to report, your loss.

Basically, it is on the insurer and the insured to minimize the risks associated with any insurance policy. Needless to say, the maximum onus is on the latter. For instance, the insurance company would not entertain any claim if you had an accident while driving under the influence of alcohol or drug. For that matter, if you expect the insurer to pay you the claim amount on the event of any damage to your car, your car has to be in good condition.

Before you purchase your insurance:

Read up a lot on the subject before you invest a good bit of money in securing life, health and belongings. It is necessary to understand each and every minute detail thoroughly; else you might end up wasting funds. Let’s take an instance for better understanding. Suppose, your insurance policy requires you to ensure that the burglar alarm is switched on and most importantly is in working condition. Unawareness and negligence of the minutest issue might cost you when you file the claim.

Where do you get information from?

  • The Internet is the storehouse of information, one click on the mouse and you can get detailed information on insurance.
  • You can approach an agent; he/she is the best guide you can have. Any doubt, it’s better to get it cleared from the horse’s mouth.

These are just some of many useful tips on what to look for while buying insurance to secure your life, health and belongings.  However, before making the final decision, you must consult an expert from this field.

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