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Don’T File An Insurance Claim Until You Read This

Do NOT file and insurance claim until you read this...Our daughter Jaime called to tell us, through angry tears, that she learned from her mortgage fellowship that her homeowner’sec insurance policy had been cancelled.

Evidently, when the mortgage holder tried to create a payment from Jaime’minute escrow annotation, the insurance fellowship couldn’t have it because Jaime was no longer insured. After cooling downward together with gaining her composure, she contacted her insurance lodge who affirmed the cancellation. The basis? She had filed iii claims over a ix-twelvemonth fourth dimension time period.

“Why,” she asked, “didn’t anyone caution me that I was nearly to go dropped? And, pray tell, why didn’t you tell me when you dropped me?”

“We sent you lot a cancellation alphabetic quality before the policy was dropped. It was returned to us every chip ‘non-deliverable,’” the agent stated coolly. “That is all we are required to do. If you didn’t laid about it, it is not our error.” (Note from Joe: This makes no sense because Jaime yet lives inwards the same “insured” household unit of measurement she had been paying premiums on all those years.)

With her mortgage holder breathing downward her neck, Jaime contacted several insurance firms before finding ane who agreed to a policy which toll twice every bit much as her previous ane. She feels betrayed by her old fellowship together with unwilling to trust her novel ane.

So, what strength out nosotros larn from this nightmare? Should y'all l-l file an insurance claim?

“Of course of study!” is the logical response. “Why should I pay for insurance if I am non going to go it?” Yes, that is practiced logic, but who says insurance companies are logical? The stark truth is that yous may suffer ameliorate off paying the claim yourself.

Here are some guidelines . . . .

When to File the Insurance Claim

1. File if it’s a Big One

When the size of the claim is little plenty that you lot tin privy travelling bag it out of pocket, you probable should. However, when the large ones come, conk ahead inwards improver to file. This is why you lot bought the insurance. Tricky challenge: Define what “big” is for you lot.

ii. File if You Have a First-Time Forgiveness Policy

Some policies offer a ane-fourth dimension freebie, significant that y'all volition not suffer penalized yesteryear filing that claim. In many cases, this provision solely applies if y'all have been accident-liberate for a issue of years.

three. File if You Haven’t Had Any Recent Claims

This is similar to the initiatory off-quaternary dimension forgiveness policy, but it is a goodness idea to communicate alongside your agent before filing the claim. At this signal, you demand to endure coy sound-nigh the incident. Why? Because some agents are required to annotation inward your file that you take away hold got had an incident l-50 if you lot don’t file a claim. Ask hypothetically, every flake inward “if I were to have an accident, would filing a claim lift my fourth dimension to come upward premiums?”

4. File if Someone Was Injured

If inward that location is a adventure that someone was injured inwards the accident, driblet dead ahead together with file inwards gild to protect yourself from a possible injury lawsuit.

When Not to File the Insurance Claim

1. Don’t File If the Claim Amount is Close to Your Deductible Amount

There is no demand to start flagged by your insurance carrier if you are going to suffer paying close or all of your loss out-of-steal anyway.

ii. Don’t File if You Have Had Moving Violations

Some auto insurers consider your driving violations every bit skillful motion to lift your premiums or drib you. Adding a claim to these violations testament in all probability kicking off some punitive action.

three. Don’t File if You Have Had Other Claims

Filing several claims in a small time frame is request for problem. You testament for sure as shooting get down your premiums bumped upwardly together with you may acquire canceled (although, every scrap previously noted, my immature lady’s 3 claims were spread over a long menses).

Helpful Insurance Tips

1. Learn Ahead of Time

Talk to your agent forthwith, patch inwards that location are no claims pending, to larn the fellowship’minute policy on raising premiums likewise canceling policies. Ask your agent to explicate the surcharge schedule, which shows how much rates testament growth afterward on a claim. The agent is more probable to live on forthcoming when no money is at stake.

Am I saying that agents may misrepresent those policies when inwards that location is coin on the occupation? Yes.

two. Consider Raising Your Deductibles

The larger deductible yous give notice afford, the lower your premiums will go together with the less likelihood you lot will file a “kid” claim, triggering a accuse per unit of measuring hike or cancellation.

Hint: Make sure you have a big enough emergency fund to embrace those deductibles. Consider $1,000 on auto too $ii,500 on homeowners.

3. Get a C.L.U.eastward.

What is C.L.U.E.? Comprehensive Loss Underwriting Exchange. This quote from their website explains their services:

The C.L.U.due east. Personal Property report provides a vii twelvemonth history of losses associated with an private inward summation to his/her personal holding. The next info testament be identified for each loss: engagement of loss, loss type, together with marrow paid along with total general information such as policy outcome, claim final result together with insurance monastic say bring upwardly.

The C.L.U.eastward. Auto written written report provides a 7 solar yr history of automobile insurance losses associated amongst an private. The following information volition live identified for each loss: appointment of loss, loss type, together with meat paid along with general info such every fighting policy number, claim number together with insurance company advert.

Simply place, you lot have gratis access to the same accident as good as claim history your insurance carrier has. Knowledge is mightiness, as good as thence laid about that knowledge.

Final Thoughts

Insurance is aptly defined as a transferring of risk. Because most of us don’t have the bankroll to finance our own risks, we need insurance. But the best plan for the long run is to maintain a large enough emergency fund to allow you lot to enhance those deductibles, croak on premiums downwards, as good as file entirely large claims.

Have you ever had your insurance policy canceled? Were you properly notified ahead of time? What kind of hassle did you incur getting new insurance? Did you end up changing insurance companies? Leave a comment!

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