insurance claims
How to work with insurance companies and avoid being scammed
Insurance claims are a fact of life and in this article I will show you the basics of preparing and filing them. Whether you’re involved in a car accident or have to go to the hospital, filing claims is an essential part of that process. Here are some basic points to keep in mind when applying.
1. Stay up to date on your insurance policies.
There’s nothing worse than filing a claim and finding out your insurance policy doesn’t cover you. Many times we take for granted that our insurance is up to date and will take care of any emergency, but then when we go to file and find out that our insurance does not cover our expenses or that we are denied because we are not already covered.
2. Insurance claims must match your policy.
What you think is covered or should be covered by your insurance may not be. Remember, your insurance company will pay insurance claims according to what your policy says and nothing more.
3. Most insurance companies are reluctant to pay.
Since insurance is a business (and a big business), you have to remember that they are in it to make a profit and one of the ways is to be strict when people apply. While they are not blatantly looking to rip you off, they will follow the guidelines of the policies they issue to make a profit.
Well, what steps do you need to take to ensure your insurance claims are approved in a timely manner?
1. Know what is in your policy.
If you have any questions or concerns, contact your insurance agent right away to avoid future headaches. Pay special attention to the “Exclusions”, “Coverages” and “Definition of terms”. Be sure to read it IMMEDIATELY after receiving it and don’t make the common mistake people make and keep it without what’s on the insurance policy. Claims must be filed based on knowledge, so it’s worth spending 20 minutes or so when you first get the policy.
2. Buy from reputable companies.
Some good resources for that are: AM Best’s Guide to Insurance Companies. AM Best is the recognized authority on insurance companies and has a simple A – F rating system. In addition, there are many resources available to you on the Internet. Simply search for the insurance company you’re considering and look for their AM Best rating. This way you can be sure that you are not dealing with a company that flies at night and future insurance claims will be honored.
3. Make sure you keep all your documents and receipts.
Save all the documents you receive about your insurance and keep them in a safe place (in a safe or lockbox, if possible). Also, have your insurance agent date and sign the receipt as an added guarantee. Trying to file without those valuable documents leaves you open to being questioned about your claim with nothing to back it up.
Well, here are some practical tips on how to prepare for and handle insurance claims. I will provide more helpful tips and information on this in future articles and posts.