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3 Ways to prevent insurance companies from cheating you

How often have we heard the cry – “My insurance agent is a fraud”? For me, it is a cry I have heard time and time again. More often than not, I have heard my friends and relatives say this sentence when they tried to claim the money due to them. I have heard and read stories where the insurance money was not released due to a minor technicality. Yet, the one thing that baffles me is that we are still gullible enough to keep falling for their false promises.

So today, I am going to share with you three surefire ways to ensure that insurance companies do not cheat you of what is rightfully yours.

1. Get a written information on the terms of rejection

Whenever an insurance agent approaches us or we seek out a company to avail of insurance, the overall focus is on the positives of the policy. The agent/company will gloss over what the benefits provided to you via the policy are. They will come up with elaborate equations to show how you are saving money via the policy. However, they will never talk about the conditions for rejecting a claim. So once they have glossed over the positives, ask them to list out all these conditions separately.

Do not fall for the common refrain – these are listed in the terms and conditions. If the agent of the company is not ready to list these conditions separately, you know that there is a high chance that they may deny your claim in the future.

2. Ask for the documentation necessary to file a claim

The technicality under which most claims are rejected is that the correct documentation was not received. This is because most of us never pay attention to this aspect. We go under the assumption that the insurance companies will inform us if any document is improper or missing. After all, this is what they promised in the beginning. However, what we do not realize is that every claim is a payout from the company’s pocket.

So how can you protect yourself? Whenever you need to file a claim, contact the insurance company and request for a list of the documents to be provided. This will help you be prepared when it comes to submitting the claim. If a company tells you “Pease refer to the agreement”, it should set out alarm bells that they could hide behind incomplete paperwork. Keep following up until you get a proper list of the documentation required by them.

3. Ask for the parameters used to decide the claim amount

One of the biggest hurdles consumers face with insurance companies is that there is no clear explanation on how they arrive at the claim payout. They are hit with sentences like “As per the agreement”, “Our terms and conditions”, ”Our investigators have helped us”.

Ask the insurance company to spell out the parameters. Spend an entire day with the officer if necessary. During your interaction, question every single parameter and ask him or her to explain how that was applied to your claim. Ensure that you have a copy of the documentation provided by you. Point out the discrepancies and have the officer sign on them. If needed, schedule a second appointment in order to get a resolution to all your questions and any discrepancies pointed out by you.

Remember, insurance companies are not in the business to pay out claims. Share this article with others and help educate the general public.

Featured image License All rights reserved by Freeway Insurance Services Inc

Laura Donnovan
Laura Donnovan
Laura Donnovan is a freelance writer with more than 4 years experience and she is interested in various topics like finance, lifestyle and business.
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