The problem auto insurance companies are having is one they don’t want consumers to know about. Many companies want consumers to believe that all Auto policies are the same. Only premium matters. Every Insurance company wants to make money. Whether they believe it or not, policyholders want them to make more money. However, the two desires can be conflicting. Let’s look at what the companies can do to make it more profitable.
Insurance companies have all the data necessary to evaluate claims. These data can be used to analyze and evaluate claims. If high-value claims are made but only a few insureds are affected, policies can be written. This would make the company more competitive. It is then necessary to ask the question, “Who would discover?”
It would require a new filing with the Insurance Commissioner, but Insurance Commissioners aren’t concerned about what is excluded from a policy. It is up the insured to be aware of these things. Most people will throw the old policy in the drawer when they receive the new policy at their next renewal.
The majority of people who have clams wouldn’t know the difference. However, the 1% who file a claim and receive a reduced payment or exclusion from coverage will be able to claim.
Let’s take a look at a few examples to see how it might work.
Example 1. Sometimes, wiring harnesses for cars are too short. They can shorten because they heat up and melt the insulation, leaving behind a mess of spaghetti-looking wires. It is possible to sustain damage in excess of several thousand dollars. What is the coverage? It might surprise you that different companies define fire in different ways.
Exemple 2. Example 2. Before you can do anything, your car hits one and you damage the front end.
The damage has been estimated at $1500. Your insurance will pay the claim? The policy definitions will determine this. It may not cover collisions with objects above the ground if the policy’s insuring clause states so. There are also details like whether the tires are included in the insurance if they are damaged during an event.
These are just a few examples of claims that can be made every day.
These things don’t happen very often, and probably won’t happen to you or anyone you know. However, if it does happen would you like your insurance to cover the majority of the repair costs?
If I asked 100 people this question, I would bet that 99% would answer yes and expect their company to pay the claim. I want to ask you: Would your company pay the claim today? How do you find the answer?
Many people will answer this question by saying, “This is what I pay my agent for to take care of me.” It’s not something I have to worry about. I have been treated rightly by the Company so why should this claim be different? Although you may be right, my advice to you is that you should not assume the worst.
It is important to understand that Auto Policies include definitions and exclusions. Asking the right questions to your agent will help you understand how definitions work. Only when you have the answers to these questions will you be able to recognize a quality product.
This information is not applicable to No Fault insurance. This information is only valid for Tort liability Insurance States.
This ebook will help novice buyers of Auto Insurance find the right questions to ask their agent. It is very easy to purchase auto insurance if you don’t have any knowledge about it. The agent will talk to you and sign you up. When you get home, you’ll not know what you have bought. You will then throw the policy in the file and forget about it when you receive it. Until you file a claim, you will not know what you purchased. It’s amazing, think about it. This is why you should have this book. The book is priced modestly at $14.97.
