WHAT TO DO WITH SUSPICIOUS INSURANCE COMPANIES

What do you do when your insurance company offers you a contract? Do you just glance at it, turning your eyes to the part which states the fee you will have to pay? If the fee is reasonable, you sign at the X and take the proof of insurance card, right? Next, you go happily along your way, rest assured that you are insured.

The best advice one can offer in this situation is: STOP!

PLEASE review and research the insurance policy you are purchasing because it will have a huge impact on you in the long run! If you ever get into an accident or otherwise have problems and you need to rely on your insurance company, they, for one, will at most compensate what your policy allows for.

The following are the top three things to look for in a low-class insurance policy:

(1) Medical coverage maximums of $1,000. Often, an insurer will have a policy in which your total medical coverage limit is $1,000 in certain situations, such as when the other party is uninsured or when you are liable for the accident. Imagine having $50,000 in medical expenses, an amount which is not uncommon, and finding that your insurance policy only covers a measly one grand!

(2) Research the complaint history of the insurance company you are considering purchasing a policy from. You can compare the number of complaints a particular company has had with the number of customers it has on the Illinois Department of Insurance website. This should give you an idea of the level of customer care you will receive in the event that you file a claim.
Their website is: http://www.idfpr.com/DOI/Complaints/Complaints.asp
[Link to http://www.idfpr.com/DOI/Complaints/Complaints.asp].

(3) Read the policy carefully to understand just what sort of support you are provided in the event that you are in an accident. Some policies provide rental coverage but limit it to $10 or $20 per day! What kind of a car can you rent for these amounts? Also, how soon will you be provided a rental vehicle, and how will your car be repaired, in the event of its being damaged?

As the saying goes, “what’s cheap ends up being expensive.” (Lo barato sale caro). Know what you’re getting before you purchase an insurance policy – you’re getting the company you contract with, so make sure you know who that company is before you spend your money!