3 Things Insurance Companies Don’t Always Tell You

Finding the great combination of insurance is a goal for many savvy consumers. Whether it’s home, auto, or health-related, the process of filing a claim or even the application process can be daunting. Many insurance agents use a variety of calculations to come up with rates and claim procedures. There are a few things that consumers should be aware of with insurance.

Demographics and styles can play a key role in rates

Believe it or not, the town you live in and the style of car or home can dramatically change premium rates. Many insurance companies use statistics that determine areas that are higher risk for theft or crime. They also assess areas prone to flood. Many areas that are not labeled as a flood zone can be rated by a claims adjustor after recent flooding for home insurance. Different occupations or marital status can play a role in the financial aspect of calculating rates.

Car makes and models also play a role the type of insurance premiums available. For example, a rear-wheel drive vehicle can be considered a sports car and carry a higher premium. It is in the best interest of consumers to research neighborhoods or vehicles before making that purchase.

There are many discounts that consumers forget about

Many Calgary insurance companies include several perks and insurance incentives to people such as students or senior citizens. Some of the more hidden features are good driver discounts or rate reductions for energy efficient vehicles. Many insurance agencies can provide additional benefits when requested.

Bad driving of any car occupant can affect premiums

A positive driving record can have a cumulative effect of lowering premiums and enhancing the stability of insurance. Inversely, it can cause premiums to go up and stay high for a considerable length of time. Many consumers do not realize that even a friend or relative driving the vehicle can raise your rates if they get into an accident.

The Bottom Line

It pays to do research in advance and inquiring about services with a local insurance company. Insurance companies can sometimes have vague or arbitrary language that makes it difficult to file a claim properly. Consumers can work with this language by claiming ambiguity and allowing more leverage for getting a claim filed more quickly. The insured should also make detailed note of exactly what is insured and place a sticker price on everything in that package. Using good detective skill and maintaining communication with an agent can help decipher the mystery of insurance.

Article credit: Calgary insurance company Thomson Schindle Green Insurance & Financial Services Ltd,