Insurance is supposed to keep us and those closest to us safe in case of an unpredictable mishap, so it would definitely be wise to get insurance, wouldn’t it? That depends on whether there’s a lot of junk attached. While good insurance provides protection against unexpected financial losses, junk insurance can incur financial losses estimated at more than $2000 annually, and while additional costs are sometimes unavoidable, it’s useful to be informed about and protect yourself from junk insurance.
Know what junk insurance is
Officially termed “add-on insurance”, junk insurance is a devilishly clever way of providing you with expensive coverage for things you need no coverage for at all. Loosely phrased and conveniently inserted among conventional clauses, junk insurance includes redundant additions to your insurance policy, which in no way benefit you yet still have to be paid for. What is more, most people are not even aware they’re paying for junk insurance. Some of the most frequent examples of junk insurance are customer credit insurance(CCI), guaranteed asset protection(GAP), mechanical breakdown insurance (MBI) and mortgage protection insurance, loan termination insurance, contents insurance, and loan protection.
Identify whether you’re paying for junk insurance
If you believe you’ve fallen victim to some form of junk insurance, the first step is always to thoroughly go through your loan and credit card statements. In case you don’t have copies of your own in your possession, be sure to contact your financial institution and ask them to send you the statements, after which you can analyse their contents. The devil is in the details, so watch out for the aforementioned phrases.
Get a refund on your junk insurance
If you’ve identified junk insurance in your insurance policy, you will want to take legal action in order to get a refund and compensation for the losses incurred. The best way to go about it would be to contact an experienced insurance refund expert and get specialised assistance. An expert will be able to help you get a refund on the costs of your junk insurance, as well as any interest charges. Such experts would not only take care of the necessary paperwork and drawn-out court cases, but they would also keep you informed at every stage of the procedure. So besides getting you the refund on your faulty policy, getting a specialist to coordinate the process is going to save you a lot of personal time and effort, which would have otherwise been wasted on tedious judicial processes.
Avoid fraud in the future
Being aware of the most common offenders and researching the background of any insurance company you are planning to work with is going to be useful in avoiding future scams. Whether you’re switching your insurance provider or choosing one for the first time, contacting a regulatory body’s office such as the Securities and Investments Commission should enable you to get information from their database related to the insurance companies, banks, warranty providers, car dealerships, and other companies that have been found to be marketing fraudulent insurance programs to customers. To determine which financial institutions you should avoid, you may also want to look at recent court cases in your region. A history of dissatisfied clients is a sign of deception and you would do well to steer clear of such insurance providers. On the other hand, well-established insurance companies have a reputation of confidence and dependability, which allows them to use unethical practices to greater effect since most assume that they can be trusted. Nothing could be farther from the truth as even some of the most reputable insurance providers have been found guilty of trading ethics, reputability and trust for profit in the form of junk insurance policies.
So, along with doing a background check of anyone you’re planning to work with, it’s recommended to meticulously check your papers for junk insurance.