• Insurance Traps and Tricks to Watch Out For (Part Two)

    Posted on 28 September, 2017

    As we discussed in Insurance Traps and Tricks to Watch out For (Part One), insurance policies are sometimes marketed to sound better than they actually are. In the second instalment of this two-part series, we’re going to look at common tricks employed to make you think you’re saving money, as well as some common traps that can mislead bicycle owners.

    Common insurance policy exclusions

    Insurance Policy Prices

    You know the old saying, “you get what you pay for”? Well, when it comes to insurance policies this is usually the case!

    Cheap Premiums

    Cheaper premiums usually mean that the insurer is cutting costs somewhere. When you purchase a policy with premiums that are much cheaper than you originally expected, it usually means your policy will have more exclusions than other more expensive ones.

    Another way an insurer can make the lower premiums justifiable to their bottom line is by increasing the cost of your excess in the event you need to make a claim. This means that despite the low premiums, you could end up spending more on your excess or paying for coverage gaps in your policy if you need to make a claim.

    Online Discounts

    More often than not, when you see high profile insurance companies offering generous online discounts, these discounts are only applicable for the first 12 months of the policy. This means that once your first year is up, your premiums will automatically tick back over to the company’s standard, higher-cost rates.

    When taking advantage of these discounts, you’re also taking the risk that the cover might not encompass as much as you might expect, which is why we recommend consulting with a broker before purchasing an insurance policy.

    Changing your insurance to a different provider once your initial 12-month contract is up to save money creates extra work and stress for yourself. And if you discover you weren’t covered in the event of a claim, how are going to know next time you won’t fall for the same type of “fine print traps” contained in policies sold directly to unsuspecting customers. Checking policy covers and exclusions yourself can help if you have the time and know-how. But how do you check how good the cover is when you can only check what cover is included and excluded in the policy without having the skill and training to know what important coverage words are missing? Being your own insurance broker can be very costly in the long-run!

    Insuring Your Bike

    If you’re insuring your bicycle, make sure you’re aware that a lot of policies will have a limit on the value you can claim if your bike is stolen from your property. Standard home insurance policies also won’t offer coverage if the bike is damaged or stolen in an accident or a competition away from the home unless you pay extra for a policy extension. 

    Why Choose Donnellys?

    Working with an insurance broker from Donnellys comes with a host of benefits, the most beneficial one being that we’ll be working with you, not for the insurance companies. This means we’re looking out for your best interests first and foremost. Another great part of working with an insurance broker is that we’ll take the stress out of making a claim, as we’ll handle all the nitty gritty and argue your case in disputes on your behalf.

    We also offer easy monthly payments so don’t be persuaded by direct insurers to accept less cover for the convenience of their monthly payment offer online.

    Want to learn more about how we can help find the best insurance coverage for your needs? Get in touch today!

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