Categories

Does Your Insurance policy Confuse The Daylight Out Of You?

by

JaydenSolle

I bet the first time you realized that it was time to phone for a few insurance quotes, you never once dreamed how complicated and daunting insurance policies can be. There could possibly be things you thought your policy covered, but when it was time to claim you came to the realization you were improperly insured. There might be certain adjustments and exclusions on your policy that you weren’t aware of – this can quickly turn into your worst nightmare.

Herewith a number of the most frequent insurance policy misunderstandings, thoughts and false ideas investigated further:

As my vehicle’s value depreciates every year, my premiums would also be reduced, right? That might sound like a logical conclusion to you, but keep in mind that cars are most times repaired rather than replaced (as far as feasible obviously!) and the fact is that the price of components, labour etc increases each year.

If I decide on a particular insurance policy now, my monthly premiums will remain exactly the same year in year out, aside from the yearly inflation, right? No, not really. Monthly premiums are usually only set for a year. After a year insurance providers would assess your claim history of the past year and your premiums might be modified accordingly. If you turned out to be a high risk client by claiming a couple of times in the past year, your premiums will most probably increase. However, if you’ve proven that you are able to maintain a squeaky clean claim history, you may also be rewarded by reduced premiums.

If my insurance policy includes an excess amount, I will only have to fork out this excess if the accident was my fault, right? No! An excess amount is generally a voluntary amount – you commit to pay the excess amount no matter the reason behind the accident or incident. The majority of insurance providers will attempt to recover the excess amount from the responsible party if the accident was not your fault, but this differs from business to business and cannot always be guaranteed. When acquiring insurance quotes, enquire about the different excess options available and also how that would influence your premium.

I’ve got a gear-lock, so I don’t need to take any other precautions, right? Once again, not quite! Many insurance providers will not approve an insurance policy if there is not some other form of security such as an immobilizer or a tracking system. The more security you have in your car, the lower your premiums as you are then considered to be a low risk consumer.

You do not have to see my car before you decide to insure it, right? Some insurance companies would choose to inspect your vehicle before finalizing your insurance plan. You can in the meantime get a number of insurance quotes, but the insurance coverage would not be activated before this assessment. They firstly have to examine if the security precautions in your vehicle meets their requirements and secondly they have to double check that the vehicle is in the condition you claim it to be in.

Regrettably there are plenty of chance takers out there- both in the form of unethical customers and insurance providers wanting to take advantage of clients, therefore it’s very important that both sides (the insured as well as the insurer) take measures to protect themselves. Never ever assume, even if you have to ask millions of questions, make certain you completely understand your insurance policy.

For more information on

insurance quotes

, got to

afi.co.za

Article Source:

ArticleRich.com