Whether you’re a business owner, a motorist, or a mortgage payer, you’ll know that insurance is a key way to protect your assets. You might have up to a dozen policies covering your financial health, providing you with a safety net during difficult times or unpredictable disasters. Unfortunately, though you’ll be paying for protection, many insurance policies limit the amount you might pay out – or restrict you from getting payouts in certain circumstances. That’s because you’ve signed a document with fine details, which are well worth checking now and in the future. Here’s what to look out for.
Your premium is the amount you’ll pay, either per month or per annum, for your insurance policy. That’s quite clear-cut, and you’ll be able to set up a standing order or a direct debit to ensure that you’re getting this paid on time and in full. The fine print you should investigate here is the penalty for non-payment. Let’s say your bank account is low on funds at the time of your monthly payment, or your credit card got canceled – are you still covered in those moments? Be careful to read these fine details to ensure you’re protected no matter what.
You’ll also want to scan the terms and conditions of your insurance policy, which are often lengthy and hidden in small print or separate documents, to your wider policy document. These fine details will map out the terms in which you’ll be granted a payout when you make a claim. The best insurers will make these clear to you from the outset so that you don’t experience an unpleasant realization down the line. The brokers at kbdinsurance.com, for instance, are up-front about the terms of the policies they share with you so that you know when you’re entitled to a payout and when you’re not.
It’s important to bear your excess in mind when you’re signing up for an insurance policy. On the whole, cheaper policies will require you to pay a larger excess should you make a claim – and these can often be financially crippling in and of themselves. It may well be worth you paying a little more cash per month to enjoy an insurance policy that won’t require you to shell out hundreds or even thousands of dollars to get the payout you feel you deserve.
Making an insurance claim can have an impact on your life. For instance, if you call your insurer to enquire about a payout for minor damage to your car, it might well be registered by your insurer as a claim. This claim will then impact your future insurance costs, even if you change insurers. Always check with your insurer when you’re talking to them about potential claims, as they may enter data into their systems – which can be shared with other insurers – that could make your premium far higher when it comes the time to renew your policy.