There are so many different types of insurance. To name a few, life insurance, health insurance, travel insurance, auto insurance, marine insurance, liability insurance, property insurance, and many others.
Insurances are meant to protect us from financial losses that may result from the covered peril.
But do you have all the necessary information before buying insurance? Sometimes when taking insurance we fail to look deeply into what the policy covers and we end up buying insurance policies but we can never claim.
In this article, we are going to look at some legal tips when signing insurance.
Table of Contents
1. Choosing the right insurance provider
The first step is to know your insurance provider. It is very common for insurance companies to hide liability clauses in the insurance policy handouts.
Some companies are driven by profitability over customer satisfaction.
Some of the complaints that have been tabled before courts regarding the unfair practices of insurance companies are;
- Some companies refuse to pay even after a successful proof of damage.
- Some insurance company knowingly misrepresented their policies to customers.
- Some insurance providers conduct reckless investigations to reduce their liability.
The only way to certain whether an insurance company is a right choice for you is through reading reviews.
A third-party review website like US-reviews.com is a good place to start.
You’ll find tons of customer feedback on different categories of insurance companies. If, for instance, you’re looking for reliable health insurance, check reviews on the health insurance marketplace.
2. Seek assistance from an insurance expert
Let’s admit it, a majority of us fail to go through all those pages in an insurance policy. they often seem too bulky and complex.
What we fail to realize is that we are a party to an insurance contract and because of this we are bound with all the terms we sign up for.
Failure to read and understand their insurance policy might cost you so much money. this is why in some cases you might need to seek assistance from an insurance expert.
The complexity of an insurance policy may sometimes leave us frustrated and we end up buying the insurance policy relying on the information given to us by the insurance agent.
I mean, all Insurance agents are legally bound to disclose the relevant information to a customer but can you trust someone who’s paid based on how many sales they make? I doubt that.
Having an insurance expert to come and help you validate the contents of your insurance policy is a better way to go about this situation.
An insurance lawyer for example will help you authenticate whether all the requirements of a valid insurance contract have been met. That is;
- An offer and acceptance
- You have the legal capacity to contract an insurance policy
An insurance expert will also guide you on ways you can make an insurance claim for when you have to.
3. Personally validating the true value of an insurance
This will be in two folds;
- Coverage assessment
When doing a coverage assessment, look into the types of Damages or perils you are going to be covered by the said insurance.
Ask yourself, will it be of any value to you.
Doing the exact number of things you can claim under your insurance is very important because you might end up claiming something that is not covered under your insurance.
You can imagine the frustration of realizing 7 years later your claim is invalid after duly paying your premiums.
- Premium or price assessment
Premium should match what you are being covered for. You will only know the true value of your insurance policy by comparing premiums offered by other companies to the premium you’re trying to purchase.
Often, premiums do not differ so much among insurance companies because of insurance regulations that prevent premium undercutting.
4. Know the waiting and claim processing period
Before signing insurance you must understand the waiting and the claim processing period that the insurance company provides.
The waiting period is the amount of time you have to wait before you can make your first claim.
The processing period on the other hand is the time between reporting damages or making a claim and the time you get compensated.
Whatever insurance company you choose to go with and sure they have a lower waiting and processing time.
5. Check on third party insurance
Another very important thing to consider when signing insurance is a provision for third-party insurance.
Third-party insurance or ‘ act-only ‘ means you are getting protected from claims of another person (third party).
This is especially so for the motor vehicle or auto insurance. However, it is not limited to auto insurance as you can take third-party insurance on damage to personal property and physical injury of third-party.