From income protection insurance to car insurance, many of the insurance companies have a number of measures to avoid paying legitimate claims in legal ways. We have to understand that they are in business and there are repercussions to that. By looking at these common examples you can better decide whether you should choose a company or not.

  1. Complicated contracts. A good insurance company will have a very well written and clear policy booklet and contract. Companies that lay this out for you in complicated ways and do not spell out their definitions or have fine print here and there, are looking to make it harder for you to understand. Fine print is a perfect example of a company trying to hide something from you. Fine print has one use only – to try and make you avoid reading it.
  2. Denying claims. Denying claims is the first line of defence for many insurance companies to protect themselves. Many insurance companies even pay commissions to staff who can find ways to deny claims. You might want to ask your life insurance or motor insurance company if this is the practice inside their company. Pushing the right buttons will give you a hint to the nature of the company. You are paying for something that you have not gotten and so whatever you can do to investigate it you should.
  3. Slow process. Some companies will stretch out the process of your claim so that it becomes unbearable for you to deal with the issue. If you need the money because of a disastrous situation this could leave you high and dry. Insurance is finance, and so if the company can stretch out the time that it takes them to pay, it might just make the company look better for any given period. A company that guarantees response and settlement time is something that you should be looking for.
  4. Investigations and private eyes. Be very aware that you may be monitored after you make a claim. Insurance companies have to protect themselves against fraudulent claims and so they will have other professional organisations that they pay to check on your claim. A photo of you in the wrong place or wrong time, or investigative reports that make your claim seem dubious may have a big effect on your life. Be aware that this will happen and take measures to protect yourself.

The reality is that everyone is out to protect themselves, and this is also the case of the insurance company. Fraudulent claims cost them millions of dollars each year. Unfortunately we are often the victim of that. Those defrauding insurance companies are also defrauding the rest of us. Get the best advice, do all the research you can, and protect yourself.