Why insurance policies should be easier to read.

Many of our customers are reluctant customers at best. They pay for years for their auto and homeowners’ insurance. They never have a claim. They have even chosen not to claim some things and just cashflow them just so they didn’t have to deal with the hassle of filing a claim, meeting with the adjuster, negotiating the value of the claim, and finally getting the work done two years later.

 

It’s much harder because they’ve been paying for their benefits for years and only get a rejected letter with no explanation as to why the damage isn’t covered. To be honest, the important policy language is still used in a well-written argument rejected, but by the time they get to the policy language, the red tint that everything has taken on makes it very difficult to begin understanding, and their frustration has shut down the portion of the brain that regulates reading and interpreting written language.

 

We must always remember that our customers are people who don’t do this for a living. They don’t care what their auto policy says about their personal property in transit. They don’t care that theft is a covered cause of loss on their homeowners’ policy unless you’re occupying a temporary residence then it’s not covered. All they care about is that when they call us, that we respond with, “Yes, that claim is covered. Can I send you a check today?”

 

Any insurers and brokers have developed publicity manuals that make the policy simple to understand, which is helpful, but it isn’t sufficient. We support making the policy simple to read and comprehend. Anything else in our environment is becoming more and more simplified. If they are researchers, no one uses big terms.

 

Why is this harder to do than we want it to be?

If you believe certain coverage attorneys and public adjusters, insurance policies are hard to read-only because insurance companies want to make it difficult for people to understand.

 

Insurance plans are difficult to understand, according to some insurance providers, because coverage lawyers seek to find coverage where nothing was ever intended.

 

The insurance policies that we see in front of us today have plenty of players to blame. There are enough intentional and unintentional actions to blame for these fine works of legal literary art. Keep in mind that every word in every insurance policy is scrutinized either before the policy is written or once the claims start coming in. Every word in every insurance policy has been read and reread by attorney after attorney. Some to make sure that the words communicate exactly what the insurance company means. Others find ways to make the policy communicate what they want it to communicate.

 

Why it’s worth pursuing.

Everything that we can do as an industry to make things easier is worth trying. Anything worth doing to help insurers gain confidence in the minds of customers is worthwhile.

 

Everything that increases voluntary uptake of insurance products is worth trying. In the end, it’s always worth trying to improve.

 

Call us at 925 308-7362 for any insurance you need or visit our website for more information.




Understanding Car Insurance Portability

Many car insurance policies have automatic renewal written into their terms, which is great if you don’t like to think about paperwork, but also means that your rates could go up without you noticing, if you’re not paying attention. If your car insurance company offers auto-renewal, renewing is easy because it happens automatically.

A month before your policy expires, you’ll get a letter from your insurance company about renewal, along with info about your new car insurance premium, and new insurance cards. If you do nothing (and keep making payments), your policy will automatically be renewed and new premium rates will apply on your renewal dates. The new rates are based on your driving history, your age, and other factors, including claim rates for your state — sometimes it’s possible for your rates to increase even if you’ve never made a claim or had any strikes against you.

If your car insurance is set to automatically renew and you feel okay about the new rates, you don’t have to do anything except continue to make payments and swap out your new insurance cards to keep in your wallet and glove box of your vehicle. And if your car insurance payments are automatic, they’ll most likely just continue into your new policy term, so you don’t need to worry about stopping and starting payments again

Some insurers may require you to sign off on your personal information before your policy renews. If this is the case, you’ll be prompted to look over your info when it’s time for renewal.

 

How to shop around for car insurance

Shopping around for a new policy to replace your current one is a similar process to when you first got coverage:

Decide whether you want to work with an independent agent or search on your own. You can get quotes from carriers online, but working with an independent agent or broker means you only have to submit your information once, and an expert will be there to help you choose from multiple carriers.
Determine how much coverage you need. You may want to keep the exact same coverage youhave now, or you may want to adjust your coverage limits and change the details of 
your coverage.
Fill out your application. Whether you’re working with a broker or not, you’ll need to submit basic info like your name, birthday, address, Social Security Number, Car Vin 
and your declarations page from your most recent prior car insurance policy.
Choose a carrier. 

One note: Be sure to set the cancellation date of your old policy and the effective, or start date of your new policy on the same day. Insurance policies begin and end at 12:01 AM on a given date, so you want to make sure you don’t accidentally leave a one-day gap in your coverage.

Learn more about How to Shop for Car Insurance.

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