News Item Detail
10 Secrets of Insurance Companies
1.They use ratings that you are not allowed to see to determine how much you will pay in premiums.
2.They use your FICO credit rating to assess risk in determining your car insurance premiums. You can't see this risk assessment either!
3.They use a software program called Colossus to determine how much your injury is worth when determining a settlement in your personal injury claim. Most often, this software is rigged to short change you!
4.They use the same software program (Colossus) to analyze the attorney you choose to represent you. They know based on previous settlements with your attorney whether they can get away with a minimal settlement amount or if your attorney will take your fight to court.
5.They sneak percentage based deductibles into your policy for things such as hurricane damages in high risk areas. This passes more cost on to the homeowner when a claim is made.
6.They argue the value of the items you are claiming loss for and will likely force you to take less than the amount that the item was worth. This is one good reason to save receipts for high value items and to store those receipts off site in case of fire, flood or hurricane damage. These receipts can help you to get the replacement value for more expensive items rather than the discounted value the insurance company will offer.
7.They force hospitals and medical providers to charge consumers with smaller insurance companies more money. Larger insurance companies tend to negotiate better deals with the medical providers and can force those same providers to charge 30-40% higher amounts to other smaller insurance companies for the same treatment.
8.They will force you to buy a more expensive homeowners insurance policy. If you fall behind in your homeowners insurance premium payments, the insurer can then drop you. As a consumer, you will be forced to purchase more expensive insurance or have "forced placed" insurance provided to you by your mortgage company.
9.Their "preferred providers" may cut costs. This is especially true in auto body shops and home repairs. These preferred repair shops tend to use materials that are not only cheaper but are also poorly made which may cost you more money in additional repairs in the future, or can result in a significantly reduced value in your vehicle when you want to sell it.
10.They don't notify your beneficiaries when you die. Life insurance companies typically wait for the beneficiaries to notify them in the event of a death. However, life insurance companies are well aware when someone dies due to the Social Security Administration reporting. This means that if your beneficiary didn't know about your policy, they may not ever collect the benefits because the insurer doesn't notify them!
For more information on insurance company secrets go to: http://money.msn.com/insurance/insurers-10-dirty-little-secrets?cp-documentid=6857400>1=33004
1.They use ratings that you are not allowed to see to determine how much you will pay in premiums.
2.They use your FICO credit rating to assess risk in determining your car insurance premiums. You can't see this risk assessment either!
3.They use a software program called Colossus to determine how much your injury is worth when determining a settlement in your personal injury claim. Most often, this software is rigged to short change you!
4.They use the same software program (Colossus) to analyze the attorney you choose to represent you. They know based on previous settlements with your attorney whether they can get away with a minimal settlement amount or if your attorney will take your fight to court.
5.They sneak percentage based deductibles into your policy for things such as hurricane damages in high risk areas. This passes more cost on to the homeowner when a claim is made.
6.They argue the value of the items you are claiming loss for and will likely force you to take less than the amount that the item was worth. This is one good reason to save receipts for high value items and to store those receipts off site in case of fire, flood or hurricane damage. These receipts can help you to get the replacement value for more expensive items rather than the discounted value the insurance company will offer.
7.They force hospitals and medical providers to charge consumers with smaller insurance companies more money. Larger insurance companies tend to negotiate better deals with the medical providers and can force those same providers to charge 30-40% higher amounts to other smaller insurance companies for the same treatment.
8.They will force you to buy a more expensive homeowners insurance policy. If you fall behind in your homeowners insurance premium payments, the insurer can then drop you. As a consumer, you will be forced to purchase more expensive insurance or have "forced placed" insurance provided to you by your mortgage company.
9.Their "preferred providers" may cut costs. This is especially true in auto body shops and home repairs. These preferred repair shops tend to use materials that are not only cheaper but are also poorly made which may cost you more money in additional repairs in the future, or can result in a significantly reduced value in your vehicle when you want to sell it.
10.They don't notify your beneficiaries when you die. Life insurance companies typically wait for the beneficiaries to notify them in the event of a death. However, life insurance companies are well aware when someone dies due to the Social Security Administration reporting. This means that if your beneficiary didn't know about your policy, they may not ever collect the benefits because the insurer doesn't notify them!
For more information on insurance company secrets go to: http://money.msn.com/insurance/insurers-10-dirty-little-secrets?cp-documentid=6857400>1=33004
October 27, 2011, 2:59 pm
