You’ve probably heard the saying, “Prevention is better than cure.” That’s especially true when it comes to your insurance policy.
For many people, insurance is a necessary evil – something they have to buy but don’t really want to deal with. But if you’re like most people and you haven’t read your insurance policy in years, you might be missing out on some major benefits.
Reading your insurance policy is one of the most important things you can do as an owner.
If you wonder “what is an insurance declaration page,” “what is the total coverage,” and “what are the terms and conditions,” then only by reading the insurance policy will you be able to get your answers.
Gives You an Accurate Understanding of What’s Covered and What Isn’t
According to a recent survey by the National Association of Insurance Commissioners (NAIC), nearly one-third of consumers (32%) of those surveyed didn’t know how much their health insurance deductibles were. The information gap is much higher among younger consumers: 39% and 45% of individuals between the ages of 18 and 29 didn’t know how much their deductibles and co-pays were, respectively.
Reading your insurance policy will help you avoid these pitfalls.
The insurance policy is the contract between you and your insurance provider, and it’s important that you understand what it says. In fact, if you don’t read it carefully, you could end up paying out more money than necessary or not being covered for things that should be included.
For example, if you have a policy that only covers theft or fire damage to your home but not natural disaster damage, then when your roof is destroyed by a hailstorm, this would not be covered under the policy – even though it would have been if you’d read the fine print carefully.
If anything goes wrong with your insurance policy or any changes are made to your coverage (such as adding or removing someone from the policy), then it’s essential that you read through these changes carefully, too – they may affect how much excess or deductible applies to each claim made.
Understanding the specific conditions and documentation required can also help you avoid life insurance claim denial due to a missed clause or incomplete paperwork. By staying informed, you empower yourself to make better decisions and minimize risks tied to misunderstandings about your coverage.
Helps You Avoid Extra Fees or Headaches When There’s a Claim
Reading your insurance policy can help you avoid extra fees or headaches when there’s a claim.
For example, have you ever heard of the “no-fault” rule? It means that if you get into an accident with someone else, and it’s not their fault, they still have to pay for your damages. If you hadn’t read your insurance policy, you might not realize that this rule applies to you and could end up paying for repairs out of pocket.
You also might not know what to do if someone else hits your car in a different state than yours. By reading your policy carefully, though, you’ll know exactly what steps to take and whom to call for help.
Lastly, if someone breaks into your house or steals from you while it’s being burgled by someone else, reading the fine print on your insurance policy could save you thousands of dollars in legal fees because those policies often cover burglary victims’ losses as well as injuries sustained during burglaries.
Estimates of yearly insurance fraud charges may have been overestimated for years due to the absence of updates for inflation and other crucial data elements. According to research conducted in 2022 by The Coalition Against Insurance Fraud (CAIF), insurance fraud can cost American consumers $308.6 billion annually. Estimated yearly fraud expenses for a variety of liability sectors are included in that sum, including life insurance ($74.7 billion), property and casualty ($45 billion), workers’ compensation ($34 billion), and auto theft ($7.4 billion).
However, reading the insurance policy establishes you in a comfortable place where you can make decisions more confidently. This also minimizes the chances of being cheated because you are well-informed after the perusal of the insurance document.
Enables You to Explain Your Needs to the Insurance Company
Reading your insurance policy helps you communicate your needs to the insurance company.
If you’ve ever tried to get through to an insurance company about a claim, you know it can be pretty frustrating. It’s easy to feel like they don’t actually care about you as a customer and just want to get rid of you so they can focus on other things.
But what if there was an easy way for you to actually tell them what it is that you need?
Well, there is! When you read the terms of your policy, you’re able to remind yourself of everything that’s covered and everything that isn’t – so when someone from the company calls asking about why you didn’t get coverage for something, why your claim wasn’t paid out in full, or why it’s taking so long for your car to be fixed. Well, now YOU will have all of the information at hand to make sure everything gets done right.
Conclusion
Reading your insurance policy is a great way to stay on top of your coverage. It’s also a way to make sure you’ve got the right type of coverage for your needs and that you aren’t paying for something you don’t need. Plus, it can be helpful in the event of an emergency, whether it’s during a natural disaster or some other kind of emergency – so you know what your insurance will cover and how much it will cost.
Thus, go ahead and read that policy. You’ll feel better knowing what you’re covered for and how much it costs, and you’ll be prepared if something happens.
