Insurance Traps and Tricks to Watch Out For (Part One)
Posted on 21 August, 2017
Sadly, not all insurance policies are created equal, and there are many fine print traps to be aware of and tricks that marketers will use to make even the worst policy sound perfect.
Here, we run you through some of the insurance traps you should watch out for when selecting your home and contents insurance, and your car insurance.
Home and Contents Insurance
Donnellys can help ensure you don’t get caught out by any of the following home and contents insurance traps.
Upon close inspection, a lot of home and content insurance policies, especially the cheaper ones, don’t actually cover as much as you might expect.
For example, your jewellery might not be covered at home under certain budget policies, or cover might be capped at only a few thousand dollars against theft. But what about accidental loss as this is not covered unless you have the right cover! Certain insurers’ marketers might mislead you with their advertising into thinking you have cover for jewellery and other personal items away from home but you have no cover at all away from home unless you buy extra cover.
What Happens if You Go On an Extended Holiday?
Did you know that most home and contents insurance policies have a 60-day holiday limit? This means that if you head out on an extended holiday, of more than 60 days and don’t notify your insurance company, you won’t be fully protected against all of the risks covered included in your policy, such as break-ins.
If you have spare room at home and are following a worldwide trend like AirBNB rentals to earn some extra money from short term tenants, you need to be aware that all home policies have a legal liability exclusion for business activities causing injury or property damage. Also, your policy might not cover tenant caused damage to your home. Some insurers will insist you buy a Landlord policy which fixes some problems but creates others, some will insist you buy a Business policy to get full coverage and some insurers have a specific policy tailored for bed and breakfast places. Check with your insurer or insurance broker what is covered by your policy.
Finding the perfect car insurance can be tricky, but picking up on all of the fine print in car insurance policies can be even harder. Here are some of the more popular traps in policies from some car insurance providers.
How You Use Your Car
If you decide to use your car outside the parameters of what’s considered personal use, you’ll need to talk to your insurer and upgrade your cover to a business policy, otherwise, you won’t be properly covered. So, if you’ve decided to earn some extra money on the weekend by becoming an Uber driver, but if you haven’t checked your coverage, any insurance claims for damage to your car or someone else’s made to your insurance company might be rejected.
If You Have a Car Accident
If you’re involved in a car accident, you’re usually only deemed not responsible is only if your car is hit while it’s parked or if someone runs up the back of you, and the responsible party can be identified. If your accident doesn’t fit within these boundaries, your no claim bonus will most likely be penalised.
But most insurance policies provide a protected no claim bonus option in the event of an at fault claim, which is available at an extra cost and will insure your loss of two year’s no claim bonus and so avoid increased renewal premiums for next two years.
If Your Car is Financed
If you are not eligible for a brand new car to replace an older one in the event of a total loss (new for old cover is usually only within 2 years of car purchase) then sometimes you might owe a finance company more money than the claim value of the car if it has depreciated quickly, amounting to thousands of dollars.
However, you can purchase Finance Gap cover to protect you for up to 75% of the extra amount due to be paid to your lender. But, keep in mind that the amount you receive will be dependent on the insurer’s assessed write-off value of the car. The good news is that at Donnellys this extra cover is usually included at no extra charge.
Here at Donnellys, we believe that comparing individual policies is sometimes like comparing an apple with an orange, especially since it’s hard to tell whether the apple is rotten inside until it’s too late. We’ll take the stress out of choosing an insurance policy by doing the research for you, and presenting you with only the highest quality fruit.
Contact us today to learn more about what you can really expect out of your home and contents insurance, and your car insurance policies.
Posted on 22 December, 2018
‘tis the season to be jolly…so make sure your home is safe, secure and you are adequately covered over...Read on
Posted on 27 November, 2018
If criminals in balaclavas and clichéd Hollywood computer hackers are among your greatest concerns for the cyber safety of your...Read on
Posted on 15 November, 2018
From typical property damage and liability risks like slip-and-fall and equipment breakdown to less common ones like food-borne illnesses,...Read on
Posted on 15 November, 2018
Generally, when you own your own home, taking out insurance on your property is something that is done without...Read on
Posted on 27 June, 2018
This month, the Donnellys team delve deeper into our Car Insurance series, and detailing in greater detail exactly what...Read on
- December 2018
- November 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- September 2017
- August 2017
- July 2017
- May 2017
- April 2017
- March 2017
- February 2017
- December 2016
- July 2016
- June 2016
- April 2016
- October 2015
- June 2015
- October 2013
- March 2013
- April 2012
- February 2012