We have Insurance to claim everything right? .... WRONG!!

 

We have Insurance to claim everything right? .... WRONG!!

Whether you've broken your nanas vase or smashed your mobile phone, deciding if you should claim the repairs on your insurance can be a tough decision.

The premiums of motor & home insurance can differ greatly because the insurers are making all sorts of assumptions about the risk you wish to insure. They take a chance on all new clients.

Premium factors such as Age, Occupation & Construction are considered and with motor policies so does your driving history and location, but insurers also use your claim history to assess how much you could potentially cost them, and with that, the more claims you make, the higher risk they assume you’ll be.

Insurance companies, Agents & Insurance Brokers should start to better educate their clients & explain what consequences will be taken against you for lodging claims against a policy BEFORE you purchase a policy from that company & upon each renewal rather than just leave it in the policy “fine print” or fail to discuss it at all.

In recent events a client who trusted their previous broker claims he was told to claim everything they can on their insurance. After all, that’s why we have insurance!

Now the client has been punished twice by having a large premium loading and extreme additional excesses imposed on both his Motor & Property Insurance.

All he did was follow the trusted advice of his broker.

Look where that got him!

I remember growing up & being told you should never be punished twice for the same wrongdoing.

This is not the case with Insurance, even after placing common sense on the table & as the clients’ new broker trying to negotiate in a reasonable way so there is a WIN – WIN for all parties I couldn’t even score a goal. Loyalty wasn’t even considered.

All parties must be willing to negotiate before a negotiation can take place.

Makes you wonder if this was the original intention of the broker & telling clients to claim for everything is a tactic to retain their clients’ long term.

The same broker advised the client if he were to leave their brokerage, he would never obtain insurance again.

My new client now has the insurance protection he deserves & that he requires with a new underwriter that was willing to work with the client.

It pays to stop & think about the advice you are given and if it doesn’t sound right, then chances are, it isn’t.

It is a timely reminder that our clients & the community need more education regarding insurance as a whole & in particular the claims process. It’s up to us the insurance professionals to make this happen.

Claims should be encouraged after suffering severe loss due to extreme weather events and natural disasters etc, not just for damaged mobile phones or your nanas broken vase.

If you need any guidance regarding your insurance, feel free to reach out or have a serious discussion with your broker or agent before you’re stuck with serious conditions that can affect your insurance long term.

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The information contained within this document including links is general and is not intended to serve as advice. It does not take into account the objectives, financial situation or needs of any particular person. For qualified advice please contact our office.

ALW Insurance Pty Ltd T/As National Insurance Brokers ABN: 22 165 146 789 ACN: 165 146 789 Corporate Authorised Representative CAR: 461886 of Community Broker Network Pty Ltd | ABN 60 096 916 184 | AFSL 233750
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