subject: Compare Auto Insurance - 3 Ways To Improve Results [print this page] Compare Auto Insurance - 3 Ways To Improve Results
It's a fact of life, insurance premiums are going higher and higher. You don't want to be paying them for years on end only to make a claim and find out that they're not paying all you thought you were due. Read this article to find out how to buy car insurance and not find yourself in that kind of predicament.
1. Accept that insurance companies are in the business of making a profit
Insurance companies are selling products in order to make profits. They make more profits if they pay out less in claims. To pay out less in claims they have full-time employees checking and double-checking claims and contracts in order to find reasons why they don't have to pay you that would stand in a court of law.
Note, I did not say anything about ways to not pay you that are nice. Nice, kind, friendly and their kin don't come into play. This is all math and emotion (desire for profit, greed).
Understand, too, that there are people who make fraudulent claims. That there are people who did not read the contract and make claims. If you were an insurance company, you'd also have people looking comparing claims and contracts, looking out for legal reasons not to pay. Like insurance companies, you'd be giving out bonuses to those employees who find the most legal ways for you to not pay a claim.
2. Accept that the marketed image and the reality don't match
Since they have money and want to make more of it, insurance companies hire people who're good at marketing to come up with ways to convince you, people who've studied buyer psychology. People who come up with words that work on your emotions (fear of loss, desire for gain, for security) because they get paid if the insurance company sells you something.
However, those people are not the ones you're going to be dealing with if you make a claim. When you make a claim, you're going to be dealing with the people who look for ways to legally not pay a claim.
In other words, understand that insurance company marketing is promises (within the realm of the legal) but not legally binding promises. In other words, they cannot lie when they market, what they say must be true under certain circumstances or for some of the people. But not you and your circumstances, necessarily. Pay attention to the fine print.
3. Understand that you need to read and understand contracts
Claims made in contracts are the only ones that are legally binding. For that reason you have to read them and understand contracts. In the case of insurance company contracts, there are many terms that are not used as they are used in day-to-day speech. Those words have the specific definition in the contract.
Furthermore, you need to read and understand the whole thing. I know they're long and boring. But you have to do it. The insurance company knows exactly what's in their contracts.
So, how do you move forward? You can trust insurance companies to do what is in the contracts they signed. In other words, it's not about trust. It's about entering legal agreements. And legal agreements must be fully understood before they're signed.
So, the next time you compare auto insurance, don't hurry, read and understand the whole contract. If you don't, it will come back to bite you.
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