Do you feel that you are being overcharged for insurance - whether it is life insurance, health insurance, car insurance, home insurance or any combination of them? Have you always noted, perhaps with some resentment, that almost all people you talked to seemed to be charged considerably lower amounts of insurance premiums, even for the same type of insurance cover, taken from the same insurance provider? Here, then, we attempt to unearth the main reason as to why you could be charged significantly higher insurance premiums, and what you can do about it. Before we can be in a position to understand what the main reason for significantly higher insurance premiums, we first have to appreciate the fact that insurance (whatever type of cover it happens to be) is supposed to provide some sort of financial protection in the event of the risk against which it is taken coming to pass. In the case of car insurance, for instance, the cover is supposed to provide a financial hedge against liability for the damage that one's car could cause in the event of a car accident, whereas for life insurance, the cover is supposed to provide a financial hedge to one's dependants against the financial deprivation they would be subject to in the event of the policyholder, who is more often than not the family's breadwinner, meeting their death. Since insurance is supposed to provide a hedge against risk, it follows that one's risk profile is the main consideration that insurance provider factor in deciding what they should charge as insurance policy. A person who, from the look of their profile, seems more likely to suffer from whatever risk they are taking insurance against is therefore typically charged more for it than a person who, from the look of their profile, seems to be less likely to suffer from whatever event it is that they are taking insurance against. From all this, then, it follows that if you appear to be a person who is at a higher risk of suffering from whatever events you are taking insurance against, then the insurance providers are more likely to consistently charge you higher amounts of money, in terms of insurance premiums, than people who seem less likely to suffer from whatever risks are in question. This arrangement is the source of the major discrepancies noted in insurance premiums from person to person, even for the same type of insurance, and from the same insurance company. Therefore what you can do about all this is to change your perceived 'risk profile' for the different risk types that you take insurance against. If you are taking insurance against the risk of death or sickness (that is, life and health insurance respectively), and you improve your health statistics - which are the main factors used to gauge risk in both instances (by for instance losing weight and stopping smoking) - then chances are that you would see your health and life insurance premiums falling down commensurately. Measure that increase home and car safety (like installation of fire fighting equipment and security gating features in the case of home insurance and the installation of anti-lock brakes and airbags in the case of car insurance), are on the other hand the factors that can help pull your home and car insurance premiums down, respectively. Learn all about Mis sold payment protection and unfair credit card charges at Simplicityclaims.co.uk
Sunday, August 16, 2009
The Main Reason As to Why You Are Being Overcharged on Insurance
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