Insurance Policies:  Are You Covered?  Really Covered?

Part 1

An Article By Scott Best

For many people buying insurance is a no-brainer.  What I mean is most people tend to think in limited terms about what insurance they really need.  98% of people who purchase insurance purchase what ever policy is recommended by the agent or by the policy seller.

And a good 90% of those people have no idea if it is truly the coverage they need.  We as an insurance buying society have become complacent about how we buy insurance.  Only when disaster strikes and that insurance is needed, do most of us find out we were faulty in getting the proper policy to cover our needs sufficiently.

Here’s the deal, insurance companies are in the business of making money, not giving it away.  They gamble that when you buy insurance, they will collect premiums for a very long time and never ever have to pay you a dime in claims, that’s the dream scenario at least for the insurance company.  In the real world, disaster does strike, and accidents do happen, and your insurance company knows that especially well.  And just like the big Las Vegas casinos they manipulate the game rules so the odds are in their favor.  If you think that’s not true, you need to read carefully the fine print exclusions on any number of insurance policies you might now carry.

Companies don’t make it easy for you to understand what the terms of a given policy are, by design.  They make note of key points early on in the policy, then the language of the policy becomes very legalistic in its grammar. Outlining many situations and circumstances where by being met, your policy will not cover your peril.

For example, some auto insurance policies will cover your auto for hit and run damage provided that damage was committed in public access areas such as city streets or parking areas.  But they will not cover such damage if it occurred in a private parking lot or garage. 

Copyright © 2007 Scott Best.  All Rights Reserved