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A Guide to Maximizing Insurance Claims

Every year, the insurance industry spends billions of dollars trying to convince you that they are the right insurance company for your needs. Their agents are going to call you. They are going to offer you freebies. The offers are going to be so ridiculously good you can’t help but sign up for the program. The agent will give you a grand welcome to the team, making you feel that you have finally found an insurance company that’s going to look out for you. While some insurance agencies do have this reputation, most of them don’t. What they do is try to include you in a web of terms and conditions that minimize their liability to you.

For example, how much do you think an insurance company will shoulder in your truck accident lawyer expenses if you figured in that kind of an accident? Your vehicular insurance policy should give you legal aid in cases like this, but many don’t hear from their insurance agents at all. They have to deal with the problems on their own. The only thing they got from their insurance agent is a free towing service and the repair of the truck. But when it comes to legal matters, there are all sorts of terms and conditions in the contract that you didn’t read when you signed (no one reads it, by the way).

That’s why it’s important to learn how to maximize these insurance policies and claims. It’s high time that you finally understand how to get the most bang out of your buck. You pay at least $75 a month for your insurance–whether it’s life, auto, or home insurance. That’s more than $1,000 a year. You’re not going to file for a claim every year. Rarely do people really maximize the amount they put in an insurance company.

So, how can you, a mere policyholder, get the most out of your hard-earned money? Simple. Here’s what you need to know:

Get to the Nitty-gritty

Admittedly, no one likes reading agreements and contracts. The agent can do that for you. The agent will be the one to explain the scope and limitations of the contract. Unfortunately, you can’t always trust the insurance agent to be honest with you. They are commission-based. Meaning, they get money from convincing you to buy a policy. They are mostly blinded by that fact. Some of them actually believe they’re giving you the best deal possible.

It’s up to you to get to the nitty-gritty of the contract. It is hard work. It takes patience to read all those terms, but this is important if you want to get your money’s worth. If you can consult with a lawyer, do so. This does not mean you’ll ask the insurance company to change the terms. It is less likely you’ll get everything you want in an insurance policy for $50 a month.

However, it pays to know what you can and cannot expect from the insurance agency. You want to be ready for any eventuality. If the insurance company cannot shoulder these expenses in the future, you have to be prepared for them yourself.

Show What You Know

When you make that call to your insurer, they are going to want to assure you of their protection. Always tell them what you know about your policy. This way, it’s easier to clarify some ambiguous terms in the contract. Knowledge of what you can and cannot make a claim for is your advantage.

It also cuts to the chase. It eliminates the need to dance around the issue: will they or will they not cover the expenses you incurred from renovating your home after a natural calamity? No one needs the added stress of arguing with an insurance adjuster or claims processor. You’ll want to get to the point. Letting them know that you understand the limitations of your policy will reduce the time wasted on unimportant discussions.

Man talking to his lawyerLearn to Negotiate

If you don’t negotiate with your insurer, you’ll have less coverage than what you deserve. It’s okay to dissatisfied with their settlement offer. No one has really been satisfied with what their insurer only wants to cover in a claim. However, don’t be afraid to file a complaint, too. Asking for a larger settlement is part of getting insured.

Put your complaint into writing. Make sure the manager and supervisor both have copies of the complaint. Be professional and direct in your letter. Give them the details of the situation, as well as the reasons why you deserve a bigger settlement. Prepare any documents you have about the incident, too. Lastly, let the insurer know how to reach out to you if they need more information about your claims.

Some insurers will try different tactics, so you’ll settle for less. That’s a game that everyone in the industry knows how to play. You are most likely to win a negotiation if you know your rights and you work within the confines of your agreement.

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