Over the years, the price of insurance has soared. That means that we are now paying more than ever for insurance policies. Many people fail to realize the underlying cause for this problem. They assume that inflation and the changing market has lead to companies boosting their prices. In fact, the rising price of insurance has more to do with the consumer than you could ever imagine. The intricate system on which insurance works means that customer activity has an impact on policies. Before consumers blame the insurers themselves, they should look closer to home to find the cause of the problem.
Fraudulent insurance claims are an unfortunate trend in the western world. The people who make fake claims do so to gain from the insurer. People often claim for the loss of items that they have sold or still own. It is difficult for insurance companies to detect whether customers have lost items or whether they have sold them. This fact presents insurance companies with a large problem. Each year insurers have to pay out billions of dollars. It’s not just in the US that there is a problem with fake insurance claims. In the UK, there were around 18,000 cases of fake insurance claims in 2013. That figure is likely to be close to the American standard and means that many people are getting away with fake claims.
So, what do these false claims mean for you as a consumer? Well, if you want to pay into an insurance policy, you might find that the cost of doing so is expensive. Over the last three years, the price of mainstream insurance policies has risen by almost a third. That means that due to the amount of claims, each customer has to pay more. People fail to realize what their illegal claim means for the rest of the customers buying policies. The rise of insurance costs now means that few people can afford proper insurance. That means that many people in the US are taking risks in every area of their life.
There are ways in which you can still get reasonable insurance policies to cover you. Compare income protection insurance policies to see where you can save money. By looking around, rather than just buying, you can find cheaper insurance companies. When buying into a policy, you should ensure that you read the terms and conditions. Many insurers have loopholes, which means that they won’t pay out to you in certain circumstances. If you fail to read the terms of your policy, you could invalidate your claim by doing something that the policy does not condone.
The fact that there are now so many fraudulent claims means that insurers have had to make claiming more difficult. Companies have implemented new strategies to prevent fake claims. That means that you can’t just tell the insurer that you have a problem; you will need to show them. The insurance company might send an interviewer to inspect your claim.
As a consumer, the best thing you can do to ensure you get a safe policy is do your research. Make sure that you understand the policy before you sign up for it. Rather than buying online, talk to someone over the phone and go through the terms of the policy with them. Doing so will mean that you understand the intricacies of the policy. There is no room for grey area when you’re buying insurance. The entire point of getting insurance is so that you feel safe. Make sure that you understand your policy before you buy it. It is a sorry state when fraudulent actions lead to the average man paying more, but if you are smart, you can still save money.