3 Insurance Tricks that Could Cost you Money

Insurance companies are known for tricks. Not all of them but there are those that know how to avoid costs and maximize profits to the chagrin of the customers. There is only one way by which customers can overcome this obstacle: understanding their policy well.

While this might seem like a tall order for some folks, the truth is that in studying your policy with the help of your attorney or an insurance expert, you can avoid these 3 insurance tricks that can cost you your hard-earned money.

#1: Understand Collision & Gap Insurance

In the case of an old car, it’s pointless getting collision insurance as its value drops towards the deductible. It’s important to remember that the insurance company will not pay you more than the value of your car so it’s best to just stick with the minimum amount. Alternatively, when buying a new car costing $ 25000 after getting rid of the old one, the insurance can value it to about $ 21000. Getting gap insurance for this kind of situation would be wise or else it will come out of our pocket. Don’t expect your insurance company to keep you informed, especially for the first.

#2: Review your policy with your insurance agent

No matter how smart or educated you think you are, your insurance policy has been written in anything but plain and simple English. Have your insurance agent or attorney explain parts that you don’t understand.

#3: Insurance Adjusters are a tricky lot

The more money they save, the bigger the bonus. This is why it is important for the insured to check with an attorney, know very clearly what the extent of the injuries is and the value of the insured property. Don’t expect them to give you a fair price right away without negotiation.