7 Key Factors to Keep In Mind during Insurance Form Filling

by Redeeming Riches on December 19, 2013

Whether you’re insuring your life, your home, your car, or your business, there are things you should keep in mind during the filing process. There are many nuances to different insurance contracts and some are so complex that finding a broker is almost always a good idea. Read on to learn about the ten most important factors you should know about insurance form filing.

 

Do Your Research

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Certainly, the most important thing you should do before buying insurance is research your various options. Most people do, in fact, do this but many limit their research to finding the best price possible. Of course, price should be a major factor in your consideration, but you should also know how and why a company justifies their rates.  This means understanding the different features that are included or excluded from a policy and deciding whether or not you need certain features or protections.

 

Know When to File

people

Knowing when to file for insurance can be a big help. Because of the way contracts are structured, most people either buy or renew their insurance on December 31st, January 1st, or July 1st. If you were to attempt to renew or buy an insurance policy near or on these dates, you can expect your file to get less than full attention. During this time, insurance underwriters are bogged down with loads of renewals which can cause them to work a little hastily.

 

In addition, between the start of November and the end of December, many underwriters have already written most of their premiums for the year. Consequently, it is better for you and your money to file for a policy between February and June. Although less advantageous, you can also file between mid-July and the beginning of November to avoid the busiest dates.

 

Don’t Put All Your Eggs in One Basket

insurance

Some people like to keep things simple by insuring everything they can with a single company. In nearly all cases, companies even try to lure customers into this model by offering multi-policy discounts that hardly offset the risks of bundling. For instance, keeping your different policies separate gives you a clearer idea of how your premiums and ultimately whatever else you have to pay are affected by claims or losses.

 

In addition, it is much easier to divorce yourself from a single policy that has proven undesirable for whatever reason than it is to drop one policy in a bundle. And don’t forget that once you drop one policy in a bundle, all of your precious multi-policy discounts vanish into thin air. It is also always a good idea to insure something with a company that specializes in those sorts of policies.

 

Beware of Renewal Tactics

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More often than not, insurance companies give you little time to think about whether you want to renew your policy. And with automatic renewals, it is easy to get locked into a contract that you may have wanted to reconsider. This is why it is important to be proactive when it comes to your renewal. Ask for a quote at least two months before your contract is set to renew so that you can address any errors in your policy/coverage and have time to get additional quotes elsewhere.

 

Learn About the Business

 

With all of the upcoming changes in the industry surrounding the FCA, the PRA, and the Solvency II Directive, it is important to really know the company you’re going with. Consumers should be aware of a company’s status with the FCA. Are they fully authorized under the FCA or do they have interim permission to conduct business? As of April 1st, 2014, this will be a major factor to keep in mind.

 

It is also a good idea to discuss or research a potential insurer’s plans for complying with the new regulations. Many of these regulations have a lot to do with consumer protection, so you may want to avoid insurers who have taken an unnecessarily hostile attitude to towards them.

 

Get it in Writing

writing

If you are filling for insurance through a broker, it is imperative that you get an agreement in writing. Everyone knows that brokers receive a commission based on insurance contracts they’ve secured, but few people actually know exactly what is coming out of their pockets for that purpose. Not only should your broker make it clear what he or she is earning for commission, but he or she should also make it clear what services they are providing to justify the amount. And of course, nothing is clearer than something in writing.

 

Technology

 

The world has already been introduced to online insurance marketplaces, smartphone apps for filing claims, and other technological advancements in the insurance industry. The simple fact is that technology can make things easier and more convenient when dealing with insurance. And with something as complicated as insurance, making things easier is a welcome addition.

 

Still, don’t be fooled into paying more for high-tech offerings and don’t use technology as a crutch when it comes to your policies. It is still important that you know exactly what you’re doing when you click something on the dotted line.

Michele Duchet is a graduate of Economics. She has been worked partly as a financial advisor for GoLifeInsuranceQuotes.co.uk which is a main life insurance and business advisory site.

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