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What to do when you do not agree with the decision of the insurer in a claim?

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decision of the insurer in a claim

Having a claim and going to insurance can be desperate, right?

The normal thing is to feel overwhelmed by circumstances, especially if at the first change they tell you that they do not take charge of its consequences. You look at the policy and you don’t understand how they can tell you that it doesn’t have coverage.

You look on the Internet and all you find are complaints.

Everything seems very complicated. You don’t know where to start or what the priority is, or even if the resolution is worth discussing.

However, not claiming what you consider to be yours causes discontent to grow in you. You think it is unfair but you do not see yourself with the capacity to manage the situation.

You would like someone to tell you what to do, how, and when, right?

You are not alone, I dare tell you that I know the way to act.

Therefore, this article is dedicated to what you can do when you are not satisfied with the resolution that the company has given to the claim.

1. How does the insurer act upon learning of the claim?

Before, I am going to tell you, briefly, what are the steps that an insurer takes when it becomes aware of the claim. This chronology, standard for most, is undergoing some changes that you should be aware of.

You have had an accident and you have communicated it to the insurer through your insurance broker or directly. From that moment on, a whole process is triggered that begins with:

1.1 Receipt of the claim declaration

The first step begins with the declaration that you have to make to the insurer once the claim has occurred. In it you must inform it in detail of the causes, circumstances, and consequences, known to you, that derive from it.

There are other channels through which the insurer can find out the occurrence of the claim, but will come to you to confirm it.

1.2 Opening of the file

Upon receipt of the declaration, the insurer will open a claim file to which it will incorporate all the information obtained during its processing.

1.3 The first checks and initial assessment of the claim

At the time the file is opened, the company makes a first check of whether or not the causes that motivate the claim are covered by the policy. Depending on its result, the insurer will adopt any of these decisions:

  • Refuse the consequences of the loss if it is not covered in the policy.
  • If there is clear coverage and enough information to indemnify the insured, he will indemnify him and archive the file.
  • If it is a complex claim or the necessary and sufficient information does not exist, the processing will continue.

In either case, the company will make a first assessment of the cost of the claim and reserve the estimated amount.

1.4 The intervention of the expert

The task of investigating, analyzing the possible causes of the loss, and assessing its consequences is entrusted by the insurer to the expert.

The expert is a professional expert in the matter under analysis and the acceptance of the claim by the company will depend on him.

1.5 Resolution of the claim

The last step, once the investigations are concluded and the claim has been assessed, will necessarily happen because of the insurer:

Pay the corresponding compensation or benefit. Once paid, the insurer may terminate the contract by voluntary decision or because the insured risk has ceased to exist as a result of the loss.

Deny payment of compensation. In this case, the insurer must inform the insured of the reasons for his decision, providing the evidence to verify it.

2. What do I do if I don’t agree with the resolution?

In recent times, insurers are replacing the “field” expert with more or less specialized teams of claims processors who resolve as if they were an expert.

The decisions they make, generally based on the information and documentation provided by the insured, are causing an increase in the number of rejected claims. They often lack the necessary evidence to adopt them and are carried out in the confidence that the insured will not claim.

The law establishes that the insurer must compensate the insured at the end of the investigations and expert opinions necessary to establish the existence of the claim and assess its consequences. And it establishes a period of 40 days, from the date of the claim, to make the payment of the minimum known amount.

If you agree with the established compensation, you only have to charge.

And if you are not, the next step is to carry out an expert opinion contradictory to that of the insurer.

3. The contradictory expert opinion in the claim to the insurer

If you do not reach an agreement with the insurer, within the period indicated above, you may appoint an expert to make a contradictory expert opinion.

You must inform the insurer of the appointment of the chosen professional. This will have a period of 8 days to designate yours. If I did not do so, I would be obliged to accept the opinion of your expert.

Once the experts are appointed and you accept the appointments, several results can be given:

That there is an agreement between the experts. In that case, the expert opinion will become a joint record stating: the causes of the loss, the assessment of the damage, and all those circumstances that influence the determination of compensation. It must also state the liquid amount of the compensation.

There are many claims where the insured gives up due to exhaustion or for not entering into legal claims for their cost. Also due to ignorance of their right to make an expert opinion on the part.

In my opinion, the only way you have to combat the dominant position of the insurer is by pulling legislation. And there it is to make use of the appointment of an expert by the insured.

But before going any further, I want to give you a good recommendation and that is that if you need to consult an expert.

And now, we are going to continue with the article that you still have things to know.

4. The appointment of the third expert

But it may happen that both experts do not reach an agreement, what to do in that case?

The solution is to appoint a third conformity expert between both parties. If there is no agreement on the appointment, you can promote a file as provided in the Law of Voluntary Jurisdiction.

Once the appointment is accepted, together with the other two experts, they will proceed to prepare a report that will be approved by unanimity or majority. This expert opinion is binding on the parties, without prejudice to the fact that it may be challenged in court. The insurer has 30 days to challenge it, while the insured has 180 days from notification.

If the report is contested, the insurer has 30 days to pay the insured the minimum amount referred to in art. 18 of the LCS. If the expert opinion is not contested, the amount determined by the experts will be paid within a period of five days.

5. The last step, the judicial claim

Sometimes it is better to go, after the resolution of the insurer, to court. In that case, you will have to use the evidence to try to make the company see reason.

The claim will be followed through a verbal trial in the courts of your domicile. When acting without a lawyer, the plaintiff will formulate a succinct demand in which he will state the data and circumstances that concur, will identify the defendant, fix precisely what he asks for, and will prove it documentary.

At this point, when you claim compensation from the insurer, it is essential to have a legitimate expert opinion that supports your claims.

The success of your claim increases if the opinion is defended before the judge by an expert. That is why I advise you to have the experience and knowledge of NPA to improve your position with the insurance company.

Conclusions

I have told you how the insurer acts when the occurrence of the claim is notified. And as it is more and more frequent that you find yourself with the refusal of its consequences. There are several reasons, but all of them justified in the knowledge that the majority will not be discussed by the insured.

The expert opinion by the insured’s expert is becoming increasingly necessary. Resorting to the second or third appraisal is a right guaranteed by article 38 of the LCS.

But you can also go to court, where having a good expert opinion is essential.

And if you wonder who pays the expenses, I will tell you that it will depend on the medium you use. But in most cases, your expert’s fees can be paid by your own insurer.

I can’t resist asking you:

How many times have you given up claiming the insurance after refusing the claim?

Don’t you think it is time to start discussing the resolutions of the insurance company without fear?

Leave your answers in the comments.

Can I cancel the insurance early if I have sold the car?

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cancel the insurance early

Are you thinking of selling your car and buy a new one?

And among the discounts and advantages of the offer, the dealer gives you car insurance for the first year. Of course, how you will miss the opportunity if also is safe all risks.

The offer no longer includes insurance, but you have found another one that is cheaper than the one offered by your insurer for the new car.

Immediately you begin to ask yourself, What do I do with the insurance on the car that I remove?

Can I cancel it early and get my money back?

Can I pass the policy on to the new buyer and have him pay for it?

Why am I going to have to pay if I no longer have the car?

In this article, I will answer your questions in case you are going to sell the car before the end of the current insurance.

How does the sale of the car affect the insurance contract?

Car insurance is a contract with a previously agreed duration and whose conditions must be met by the insurer and the insured. In the event that any of the parties wants to cancel it early, there will be a penalty.

As in insurance, the premium is paid in advance, the penalty will be economic for those who cancel the insurance early. If your policy has the payment of the premium divided, even if you sell the car, you are obliged to pay the full annuity.

When early cancellation is requested by the policyholder, the unconsumed premiums remain in favor of the insurer. If this is the one who cancels it, they will have to return the remaining premium to the policyholder.

As you can see, until now the disappearance of the risk from the sale of the car has not appeared, but do not be in a hurry that I will tell you about it.

But first, we are going to analyze what are the alternatives that exist after selling the car.

1. I sell the car with insurance to the buyer

If the car buyer agrees to transfer the insurance to him at the same time that you sell him the car, you should immediately notify your company. This will analyze if the conditions of the new policyholder and driver (age, experience, driving history) conform to its risk selection rules and will make its proposal.

If the risk profile is equal to or lower than that declared in the insurance, the transfer can be done without any problem. If the risk were greater than the original, the insurer could reject the application.

When this happens, solutions can go through:

  • The payment of an additional premium for the new policyholder
  • Reserve the unconsumed premium for you to use it later in other insurance. This possibility is exceptional and has an expiration date, depending on the company. Some carry it only until maturity, others extend it to 18 months.

Like any other request that can modify a contract, in the insurance one, it must also be made in writing.

It is essential that you set the date on which the changes should take effect. Remember that if you do not notify the insurer of the sale and from when you cease to be the owner of the car, in the event of a claim, the expenses will be charged to your policy and you will not be exonerated from the risks incurred by the new owner.

2. I want to keep the insurance for the remaining time after I sell the car

You have decided to sell the car but you want to take advantage of what remains for you because you are going to buy another. This is a situation with few complications, although it is not always without its setbacks.

The usual thing is to substitute one vehicle for another. In this case, if there is no delay between the withdrawal of one and the delivery of the other, the company will apply the price that corresponds to the chosen type of insurance, discounting the unused premiums.

The setback can arise if the delivery of the new vehicle is delayed and the old one has already been sold. In that case, you must inform the insurer so that they reserve the premium for you until the new car is delivered.

Before I was talking about this measure and its exceptional nature, so it is convenient for you to have it previously agreed.

3. I have sold the vehicle and do not want to continue with the insurance

It is possible that you know, from what I have told you, how likely you are to lose the unused premium.

Whether you sell the vehicle to a private individual, or if you sell it to a sale or take it to scrap, you are obliged to notify your insurance. In the first two cases, you should inform the buyer, in writing, of the existence of the insurance and its possible transfer.

Once the transmission is verified, you have 15 days to inform the insurer, who may terminate the contract in another fifteen days. If it does, it is obliged to return the unconsumed premium to you.

Ah! And of course, throughout this process, it helps not to have had claims, because if there were …

conclusion

If you plan to sell the car in the middle of the insurance period, get used to the idea that one of these exceptions must be met in order to return the premium for the time not consumed.

One happens because the insurer accepts the risk derived from the transmission of the vehicle. In that case, it is the buyer who can reimburse you for the remaining insurance time until the renewal.

The other exception is that the company itself decides to terminate the contract.

In all other cases, the best thing that can happen is that you reserve the premium to use it later.

These suggestions will help you and avoid setbacks:

Inform the buyer in writing of the existence of the insurance and then the insurer. Complying with this requirement established in the law can have a positive result for you.

All communications make them in writing in such a way that you can prove it at any time.

And to finish, tell me, did you notify the insurer about the sale of the car? What did you do with the unused premium?

Leave your answer in the comments.

How to choose a car insurance company without mistakes

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How do you choose an insurance company before hiring car insurance

When I started this blog, I made it my goal to help insurance consumers. One of the most frequent doubts is to choose an insurance company before purchasing insurance. They all offer similar coverage and services, so most of the time it is the price that tips the balance towards one or the other.

How do you choose an insurance company before purchasing car insurance?

Do you search the Internet directly or do you do it through comparators? In a few months, I have known that several blog subscribers who have taken out car insurance with the same company they wanted to leave. Just a brand change in insurance.

These and other things will be part of the content of this article so that you have no doubts about who you take out the insurance with.

3 Things to keep in mind before choosing an insurance company

For many insurance clients, it is difficult to choose the one that is best for them. In recent years, many insurers have been competing in the automobile segment. This means that there is a large number of offers based on a good number of coverage at cheap prices. Before going into the matter, I want to remind you of three aspects that you should keep in mind before choosing the insurer in which you will take out your car policy.

1 – It is mandatory to have liability insurance

First of all, in Spain to be able to circulate with a vehicle it is mandatory to have civil liability insurance that covers the damages that you may cause to third parties.

This is the main guarantee of your policy and while all insurers have to provide the same coverage, the price can vary considerably from one to the other.

2 – Secure investment

Buying a car is a great investment, for many the investment of a lifetime. Therefore you have to take care that it is not lost at the first change if you suffer an accident. The way to do this is to take out “comprehensive insurance” in its different forms. Think about it.

If the vehicle is new, the best way to insure the investment is to take out “full-risk” insurance in its different forms. But if the car is a few years old, choosing an “extended third party” maybe your best choice.

3 – Each user has a different profile.

You have to be aware that each individual has a different profile so their exposure to risk is different. The price of the insurance will vary depending on your personal circumstances. Each insurer will have its price for you, for your characteristics, those of the vehicle, and those of each guarantee.

There are three aspects that will determine your choice, especially these last two.

We each value investments differently, but what we don’t do is spend more than necessary. If you have bought a second-hand car, with a few years in tow, it will not be worth it to buy an all risk. And of course, there is your profile since almost no insurer will be able to hide your driving record.

Do I contract my insurance directly or through a mediator?

There are many companies that operate in the car insurance segment – the most profitable in the sector – so each one has to make a hole. There are currently two types of insurers: traditional companies and those that operate in direct sales.

insurers that operate in direct sales have lower structural costs, which allows them to offer low-cost products. Their online sales channels do not leave space for the mediator, so you lose the personalized treatment.

To make the search for the ideal insurance easier, insurance comparators were born. A bet in which the necessary subject is the insurance broker, without him you would not be able to contract the insurance through the comparator.

But there is more. At the beginning of the article, I was telling you about a reader who had changed insurance thinking that he was changing insurance and had not been. You will see why later.

All companies offer the same, how to know which one interests me the most

You only need to take a look at the website of the insurers to see that they all offer two modalities, third-party insurance or all-risk insurance. Around a basic package of coverage – mandatory and voluntary civil liability, driver accidents, or criminal defense – other guarantees are included until each modality is formed.

In the third-party mode, you can find from the basic insurance to an extended third party with coverage of the fire, theft, glass, travel assistance, or withdrawal of the driving license.

When it comes to “all-risk”, in addition to the above, you have your own damage coverage included with or without excess.

If all the insurers offer the same and my profile is identical for all, why is there so much difference in price in the insurance?

The simple answer is that each one values ​​risk in one way. But the truth is that it is the coverage offered by each one that makes the difference.

In some guarantees the differences are evident. You have a clear example in legal protection, it is not the same to have it limited to 600 dollars than 1,200 dollars. It is not the same that in your own damages they compensate you for 100% of the value of the car than for its market value.

Choosing an insurance company does not depend solely on the price, nor on the guarantees offered by each product. In the current market, there are other factors that you must assess, which are not directly linked to the offer but on which your satisfaction with the insurer will depend.

3 Factors that will help you choose an insurance company for your car

You have reviewed the coverage, the price is attractive, that maybe your insurance. Now you only have to check a few things, these are some of those that I would review.

1. Misleading offers

You must be careful and check if the conditions for the second year are the same as when purchasing the policy. Most of the time they are commercial discounts that do not have continuity in time and when you renew you are surprised.

If your intention is to contract an insurance package (car, home, motorcycle) pay attention to the obligations you contract. Think about whether you will continue to have the same needs later on or will have to pay for something that you no longer have.

2. Be clear with whom you contract

In the same way that the Internet can make things easier for you, it can also complicate them. Therefore, before purchasing, you should go a little beyond the simple offer, you should investigate what is behind it.

3. After-sales service

If you choose to choose an online insurance company, check that it has the means to communicate in a way that is accessible at any time and circumstance. For certain questions, you will have to address yourself in writing, so it must be clear how to do it.

Find out about the opinions that other citizens have about the insurer. It may have the best coverage on the market or the best price, but if the service is not good it will be of little use if you have to litigate for it to be provided.

I could list other aspects, but that will already be content for another article.

conclusion

You may have noticed that some of these actions take time to do. The most important thing is to be patient enough to carefully compare each of the offers.

Analyze that the coverage and the price is in line with what they offer you. Track all the information about the product, who markets it, or how the insurer behaves in the opinion of users.

On the Internet, all sites must have visible to the visitor the links to pages such as “legal information” or “privacy policies” and these are a source of information. Do not stop visiting them.

True to my habit, I leave you this question so you can leave us your opinion in the comments.

Do you use any of these criteria to choose an insurance company or do you entrust this task to an insurance mediator?

5 facts that insurers look at before purchasing car insurance

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Who has not fallen on the world when they have said that they did not do car insurance

As a result of the inquiries received about the refusal of some companies to take out car insurance, I have thought about telling you in a post that insurers look at before accepting the risk. What are they looking for and how do they do it?

Who has not fallen on the world when they have told him that they did not do car insurance or that it was going to cost him a kidney?

It is frustrating, especially if the car is waiting for you to release it. Of course, it is a situation that you did not expect after years of driving. And on top of that, it happens to you with insurance that is mandatory to contract to circulate legally.

But each time insurers are more concerned about their results and look in detail who will be their client and what risk they are going to insure. So it is not surprising that, at the first chance, you find a negative as they do not like the information about you.

What insurers look at before purchasing car insurance

Just like you, before buying a car, you assess the advantages and disadvantages of each make or model, insurers do the same with their clients. Because for them it is not the same that you are a good client that you can be a whirlwind of spending.

In order to get to know their customers better and in advance, companies have provided themselves with various files in which they store the history of each one.

These are the five most important facts that insurers look at before purchasing car insurance.

1. The history of the policyholder

You sure think there is a mistake in the title. We are talking about insuring a vehicle, the logical thing is that they are interested in the history of the driver and not the policyholder.

No, there is no mistake.

In-car policies, three different people can be given: the driver, the owner of the vehicle, and the policyholder. Usually, these last two coincide in the same person. But the driver can vary, and if the companies focused their attention on him, he would surely have an immaculate record.

They focus their attention on the policyholder because he is the one who is interested in taking out the insurance because he is the one who assumes the payment of the premium and therefore if he wants to enjoy good conditions, he will ensure that he has a good record.

If the holder of the policy you want to enjoy good conditions in insurance, ensure having a good driving record.

A simple query to SINCO about your history as a policyholder is enough to know if you pass the first filter.

2. Driving experience saves you money

The information about the driver also does not escape the analysis of the data that insurers look at. If you are going to be the driver of the vehicle, having a fresh driving license is inconvenient.

If you are new, the normal thing is that they establish a price for the insurance much higher than if you are an experienced driver. But also if you have not reached 25 years of age, they will most likely reject the purchasing.

Each insurer has its own rules, although almost all agree to reject the new driver unless it is linked to a good client.

3. If you are a good payer, you will avoid going to the CCS

There are many insurers that check if you have left debts out there. They look to see if they are included in a file of defaulters before accepting the insurance contract.

But the truth is that this type of consultation is becoming more and more frequent, even if you intend to contract through an insurance agent or broker.

If this happens to you, the answer is in this article: Where can I insure the car when no insurer wants me.

4. Expensive and powerful cars don’t like insurance

So far what insurers look at in the personal circumstances of the policyholder or driver of the insurance. But there are others that are linked to the vehicle that provides data on the level of risk that it intends to insure. I’m going to talk to you only about two of them that for different reasons will determine the acceptance of the insurance,

4.1 Luxury cars throw the balance sheet

More and more insurers look down on high-end cars. The reason is none other than the high cost of repairing the claims where they are involved.

You probably think that the premiums they pay are higher than those of a utility vehicle. True, but even so many insurers are not compensated.

And the reason is none other than the current claims processing system where the company that is creditor has to attend to the damages of its client.

Currently, practically all automobile insurers adhere to the Claims Compensation Information Agreement.

I give you an example, while the replacement of a headlight in a Citroen C3 does not reach 600 dollars, in an Audi Q7 it can exceed 1,000 dollars. In both cases, the creditor insurer will receive 882 dollars from the debtor, the amount established in the agreement as to compensation. While one earns money, the other loses it. Hence, they are increasingly reluctant to buy luxury cars.

The way to maintain balance in the accounts of the insurer sometimes happens by closing the high-end vehicle market.

4.2 A lot of power and little weight a difficult relationship in insurance

The power and weight of the vehicle are two characteristics that by themselves do not represent a greater risk for insurance.

My car is a 150 hp Altea, which for many insurers is just a family vehicle. The Seat León, with the same engine, for many companies is an aggravated risk, and if it is associated with a young driver, an excluded risk.

As you can see, not only power influences, also weight. And above all the potential risk that the profile of the associated driver poses for the insurer.

5. The usual address of the garage

We are living in an era of big data where information is analyzed to the last bit.

Why am I telling you this?

Because for insurers it is not the same for the car to circulate and sleep in a marginal area as it is to do so in a residential and guarded place.

For this reason, while a few years ago the province was the reference, now, they descend in their analysis to the postal district. In this way, they try to protect themselves against possible fraud, which is more frequent in economically depressed areas or neighborhoods.

conclusion

Although car insurance is mandatory, insurers do not always do their part. If the data on the policyholder does not match the customer model they are looking for or the risk posed by the vehicle does not convince them, they may refuse to take out the insurance.

I have told you 5 of the things that insurers look at and how they do it. As if you have no history as a policyholder or figures in a file of defaulters, a frequent fact with the crisis, you can be denied the purchasing of insurance.

Nor are those who buy high-end or sports vehicles free from being rejected. Or tuning enthusiasts who make a fortune customizing the car.

And you know, it depends on where you have the address to insure the car or you have to pay a heavy surcharge for it.

Your turn, tell me.

Have they ever given you pumpkins when you want to take out car insurance? How did you solve it?
I would love to read your comment.

What happens if I don’t pay my insurance bill?

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Is it hard for you to ask for the cancellation of the insurance legally and you just return the receipt

Do you regret having taken out this insurance, if your needs were different?

Is it difficult for you to ask for the cancellation of the insurance legally?

You don’t have time to lose and you prefer to return the receipt when they pass it on to you. You have always done it that way, but you have heard, you have been told and then you ask yourself the question: What happens if I do not pay the insurance and return the receipt?

What happens if I do not pay for the car, house insurance …

It is the obligation of the policyholder to pay the premium in advance, at the beginning or at the renewal of the insurance contract.

When you stop paying for the insurance, according to the provisions of article 15 of the Insurance Contract Law, the insurer can act in two different ways. On the one hand, it can terminate the contract, that is, cancel it. Or you can be required in an executive way, normally by means of an order for payment, the payment of the insurance premium.

The first consequence of non-payment of insurance is that if you have a claim, the company is released from its obligation to pay you for its consequences.

If it is also compulsory insurance, you risk being penalized if you do not have it. In the case of car insurance, the penalty can reach up to 3,000 dollars.

1 month of coverage + 6 months to claim


When you stop paying one of the next (renewal) premiums, your insurance coverage is suspended one month after the expiration date. If during this first month you have a claim, the insurer is obliged to attend to it. And you to pay the bill.

The company has a period of 6 months, after expiration, to executive demand the payment of the premium. If after this time it has not been done so, the insurance contract is automatically terminated.

I recommend reading this article because this is not always the case. The Supreme Court is valid that you can claim the insurance payment after more than six months.

But during this time, if the contract has not been terminated or terminated, you can pay the premium and the insurance takes effect again 24 hours after payment.

What happens if I stop paying for life insurance

To answer what happens if I do not pay for life insurance, you have to go to the exceptional treatment that the LCS provides for certain modalities.

In the event of non-payment, this exceptional regime translates into the right to reduction. Through the reduction, the initial insurance is transformed into a similar one with lower benefits. This new level of benefits is the one corresponding to the premiums charged up to that moment.

To qualify for a reduction, at least two years have elapsed since the insurance was contracted. Furthermore, for the reduction to be made, the contract must have a table of values ​​that relates the equivalence between the premiums paid and the benefits once the reduction has been applied.

The reduction of a life policy makes it remain in force until its termination without the need to continue paying the premium.

Moreover, as a policyholder you have the right to return to the original conditions, paying the corresponding premiums and of course before the loss occurs.

conclusion

If what you want is to cancel the insurance contract, because you have sold the car or the house, or you simply want to change the insurance company because it offers you better conditions, it is best that you follow these steps: How to unsubscribe from insurance: Guide to do it in an efficient way.

It was a mistake. There were insufficient funds in the account and you want to continue with the insurance. Well, if the company has not resolved the contract, you are still in time to pay the bill if six months have not passed.

But you must bear in mind that the insurer can terminate the contract at any time. Of course, once the grace month has elapsed and communicated it previously. You can also wait for six months until the automatic termination of the contract.

And above all, do not forget that if you have a fractional payment, paid the first fraction, you are obliged to pay the rest.

And you, are you one of those who return the receipt to cancel the contract or request the cancellation legally?

Have you been updating your insurance for a while? These are my tips to get it right

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updating your insurance

I have already talked in this blog that the best way to save and be protected is to have your insurance up to date.

As important as saving on the price is having the insurance well done. Having the coverage you need to safeguard your wealth and that of your family should be your priority.

I am convinced that you do not have time to sit down and review your insurance contracts. Me too, but when it comes to prevention I try to take a while.

For me, October is an important month because a good part of the insurance that I have expires in December. Therefore, before the date arrives, I try to get my insurance up to date and if I can improve what I pay for it much better.

Do you know what you should check in each insurance, in addition to the price?

In order not to waste much time, in this article I will tell you what things I check in each of my policies.

Car insurance

In the family, we have two cars, very similar in type, power, and age. For a few years, both have the same insurance coverage. It is an extended third party that includes fire, theft, and moons. Of course, they also include accident insurance for the driver and travel assistance.

One has turned 10 and the other some more. Both policies enjoy the maximum bonus, so any technical increase in price affects them.

Due to the years of the car, and the real value of each one, it may no longer pay to continue to maintain some coverage. The same age advises reviewing the validity of some other guarantee.

So this year I will update this insurance by checking these two things:

1. The market value of the vehicle.

With this, I will decide if it is worth keeping the theft and fire guarantee. I can save a little more than 60 euros per policy by eliminating this insurance coverage.

2. The older the car, the more risk of breakdowns.

Therefore I will check if the limitations of travel assistance have changed due to the age of the vehicle. I will check if any limitation has come into force on the number of assists per year or the distance from which they will assist me on the road. In this sense, it is common to include a minimum radius of 25 km to receive help or limit it to 3 assistance per insurance annuity.

If the car is a few years old and is still fully comprehensive, you can cancel the coverage, including a franchise or contract only the total loss. With this, you can save up to 60% on the price of insurance.

To have these insurances up to date you do not need to touch any other guarantee. One because it is mandatory and the rest for necessary.

Home insurance

This year the home insurance policy is not included in the “up-to-date insurance” campaign. I had a review last year and the house has not undergone significant changes during this time, neither in the building nor in the content.

The insurance had not been reviewed for 3 years and had done work on the house, change doors and windows, the floor, and expand a room. In short, the value of the house had increased and the square meter had gone from 800 dollars to 925 dollars. In order not to fall into underinsurance on the continent, increase the sum insured by 20,000 dollars.

The insured capital of content had also increased. The difference with the previous inventory meant having underinsurance of 18%, so I had to increase the insurance sum by that proportion.

Do not stop reading this article to know what consequences this situation has. They tell me I have underinsurance. Why does it happen and how can I fix it?

After reviewing the content and container capitals, it was time to see what the limits of the insured capital were for certain coverages, and if they continued to suit my needs.

Once revised, I extended the limits of some guarantee, especially where the repair or replacement costs had been outdated.

Among others, increase the capital at first risk of the breakage of glass, the robbery outside the home, or the location and repair of water faults. Go from basic home assistance and legal protection to premium ones.

Ah! An important fact, I changed the company because the one I had did not suit my needs. If you want to know how I did it, enter here and get this free guide created to help you.

In short, 3.4 dollars more per month on the home insurance receipt.

Health should not be a luxury

If you are not one of the lucky ones who work for a company with high social benefits, health insurance can be a luxury item. To bring the insurance up to date, you must check if the health insurance benefits are sufficient. Advances in prevention, diagnosis, or medical treatment are evolving rapidly.

It is common for some time to pass from when the insurance is purchased until it is used. Therefore by not using it, you have not felt the need to review it. Review it and see if, with the price update, the benefits have also been updated.

It is expensive insurance, but it offers possibilities to adapt it to your economic situation. You can include or increase the copayment, suppress certain benefits, and thus adjust the price of the insurance.

To be honest, it is a modality that I do not currently include in my insurance portfolio.

If you are looking for savings with your insurance campaign up to date and you have thought about changing health insurers, first I recommend reading: 5 Things to keep in mind before canceling health insurance.

Life insurance, an eternal guarantee

The objective of taking out life insurance is to guarantee financial stability to your beneficiaries if you are absent. But to maintain economic stability it is not enough to sign the contract and forget that it is there. You are obliged to review it periodically to adapt the insured capital to your future expectations.

In my case, life insurance has been underwritten for more than 30 years. Since then I have reviewed it 4 times. In the first two, double the insured capital, in the last two only increase it. In the third review, the possibility of having an accident increased considerably, so I decided to include double and triple capital due to death in an accident.

My current insurance plan to date is considering reducing the insured capital or perhaps dividing it between several insurance policies. The risk profile has changed and age causes the price of insurance to rise exponentially every year.

What is the capital that I must take out in life or disability insurance? Do not miss this post if you are thinking of subscribing to an eternal guarantee.

The same formula should be applied to savings insurance or pension plans. Your current investments will depend on whether you can maintain the economic level when retirement arrives.

But if your interest is short-term, you must necessarily check if it is convenient for you to invest to reduce the tax bill.

The daily insurance program goes beyond family insurance

Is your professional or business activity required to subscribe to some type of insurance?

In that case, review the last annual statement you made to the company of your business billing or the number of workers you employ. These are two concepts that according to the policy in question you have to regularize annually.

There is more insurance to review, but we will see that in another post, while I leave you with: How to reduce the insurance bill: 7 + 1 advice to pay less.

conclusion

My check to keep insurance up to date is almost complete. After the modifications, I admit that I have not saved much, about 20 dollars. It’s only 1% of what I pay regularly per year on insurance. To this, I will have to add what I can reduce in life insurance.

A review of the payments to verify that they are up to date is the finishing touch to remain calm for another year.

I hope this guide helps you get your insurance up-to-date, and if you can’t spare a lot of time, seek help from your insurance broker.

Now you know what I review of my insurance contracts, it’s up to you to tell us how you do it!

Do I have to wait for the insurance expert to come before I repair the damage from a claim?

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There is a humidity march in the bedroom and the first thing you think is: Warn the insurance!

You discover that there is a march of humidity in the bedroom and that is the first thing you think. Warn the insurance! And then you wait for the insurance expert to come.

If you act like this, you are among the 9 out of 10 people who do. There is a general belief among policyholders, injured parties, and agents that after a claim, you have to wait for the insurance expert to intervene and assess the consequences. This way of acting is not new, and it has taken root in such a way that, in many cases, even the supervisor of the repair company is confused with the insurance expert.

There are many who, when discovering that they have been robbed at home, instead of calling the police, notify the insurance and then wait with everything mixed up for the expert to arrive. As if their presence were necessary to reorder the house or to make an inventory of what was stolen.

The same happens when a pipe breaks or we have a hit with the car. Instead of calling the plumber to fix the fault as soon as possible, we called the insurance agent and waited for the expert’s instructions.

Now I have to apologize because for years, working for an insurance company, I have nurtured this belief. It is simply the company’s way of controlling the loss from the beginning. And since there is money involved, there is always an argument with which to convince the insured to wait.

If you want to know how to repair the damage without delay, better not leave a line of the article unread.

Is the company obliged to send me to the expert to assess the damage or to the repairman to repair it?

I’m going to be direct. The insurer only has the obligation to compensate for the damages, as long as the claim is covered by the policy.

The Law 50/80 of Insurance Contract provides that the insurer shall indemnify the insured for the term of research or expert reports needed to establish the occurrence of the incident and recorded the number of damages.

At the same time, it allows the insurer, provided the insured agrees, to substitute the compensation for the repair or replacement of the damage.

But the law, as an insured, transfers several duties to you that you must fulfill:

  • Notify the insurer of the occurrence of the loss within seven days of knowing it. If you do it late or don’t do it, you expose yourself to a claim from the company for the damages that your action may have caused.
  • You must report all the circumstances and consequences of the claim. If you do not do so, you could lose the right to compensation if there is intent or gross negligence.
  • And you have to use all the means at your disposal to lessen the consequences of the accident.

As you can see, the law does not say that the insurance expert was required to intervene so do not wait for him. What’s more, for some time now, many insurers have been dispensing with the on-site expert in low-value claims.

Do I have an advantage if the insurance expert intervenes?

I have consulted OneNote to see what references I have written down and two notes appear referring to the advantages of having an insurance expert intervene after a claim.

The first is the payment commitment that the expert on behalf of the company can give to the workshop or repair service. In this way, in exchange for deciding how to repair it, you will not have to anticipate a single dollar.

The same happens with the valuation of the claim, if you agree, you will not have to wait long to collect the compensation.

As you can see, some advantage exists as long as the insurer benefits.

What problems can I have if I don’t do what the insurance expert or the company says?

You must always keep in mind that the assets are yours, they do not belong to the company and not to the expert. Therefore, the last decision you have to make because it is your interest that is at stake.

The performance of the expert must be truthful, impartial, and must put the law before the interests of each one. The insurance contract is often open to interpretation and that is where the figure of the insurance expert becomes especially relevant because the balance will fall on the side of the insurer.

Insurance experts are the ones who rule on the causes of the loss, the assessment of the damages, and the other circumstances that influence the determination of the compensation derived from an insurance contract and formulate the proposal for the liquid amount of the compensation.

Tenth additional provision Law 20/15 of Regulation, supervision, and solvency of insurance entities.

If the insurance expert is appointed by the insurer, he will make a unilateral assessment of the damages. But if this is done later, and your actions have been sensible, the expert will attest to what happened and will propose to settle the claim.

How do I act if I want to repair it immediately?

We have seen how the company has no obligation to send the expert and that if it does not do so, nothing should happen either.

The best way to act after the loss is to use common sense as if there were no insurance behind it. If you look at it, the obligations imposed by law on the insured are reasonable in all circumstances.

Then declare the claim to the insurer and provide all the documentation that supports your claim. To do this, take photographs of the circumstances and the damages, delivery estimates, invoices, and all the information that proves the repair or replacement of the goods. And if the damages are substantial or the causes are complex, my advice is that you appoint your own expert. It is preferable to do it at the beginning before the insurer designates yours.

Go to the insurer when you need urgent assistance or when the service you need is mandatory for its repairers.

conclusion

As I have already told you, it is false that the insurer is obliged to send an expert to assess the loss. It is also true that you cannot repair or replace damaged goods without the intervention of an insurance expert.

The expert will not locate the water fault, nor will he paint the car or put out the fire. So why think about insurance first?

Act as if you did not have insurance, document the loss and its consequences, and only then claim the corresponding compensation.

And remember two things:

  1. Except in certain cases,  with the compensation, you can do whatever you want. You have no obligation to use it to replace the goods.
  2. Pretending to take advantage of the insurance by increasing the consequences, falsify the causes or collect compensation more than once for the same damages,  is an illegality that can have unforeseeable consequences.

In short, it breaks with the belief that the insurance expert is mandatory and begins to act rationally.

It is not impossible, everything is a matter of starting.

What do you think, do you think the presence of the insurance expert before repairing the damage gives you an advantage?

When is it mandatory to purchase home insurance

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I often have the feeling that many readers think that it is mandatory to purchase home insurance for the home

I often have the feeling that many readers of the blog think it is mandatory to buy a safe home for housing. Especially when they have requested a mortgage loan and the bank requires them to take out insurance. At least that is what I perceive in the content of quite a few of your questions.

The same thing happens with this as with the secret ingredient in Coca-Cola, many people think that it is cocaine.

In both cases … nothing is further from the truth.

Home insurance is one that has the highest ratio of employment. Three out of every four households have taken out home insurance. But this does not mean that it is mandatory to take out home insurance for your house. Or if it is?

In this article, I am going to discover what is true in all this.

When is it mandatory to take out home insurance for your house?

Today, it is not mandatory to take out home insurance. The law does not require it even when we take out a mortgage loan to pay for the home.

At the end of 2013, the European Parliament approved the European Mortgage Directive that prohibits banks from linking a mortgage to the purchase of a home, life, or any other insurance.

The bank, sometimes, does not limit itself to offering you the insurance, it imposes its contracting arguing that it is mandatory and more, for the granting of the loan.

The truth is that there is an assurance obligation that can often lead to doubt.

What the law says is that it is mandatory to contract home insurance if the bank plans to sell all or part of that mortgage to third parties ( securitize the mortgage) through certificates, bonds, or mortgage participations, it must cover what guarantees the loan with insurance damage. In other words, the bank as the holder of the mortgage is the one who must have the insurance.

The one obligated to take out the insurance is the bank itself, although, in practice, it includes this obligation in the loan conditions. Therefore, since you are not obliged to take out the insurance, you can refuse to do so, regardless of whether you can voluntarily subscribe to it with the insurance company that offers you the best conditions.

You should know that if the financial institution denies you credit for not taking out insurance, you can report this practice, in addition to refusing to take out any other type of insurance.

If I rent a home, do I have to take out home insurance?

If you have already paid for the home, you are also not required to take out damage insurance. But it is recommended that you do it. In addition to covering the risks inherent to the property (fire, explosion, meteorological phenomena, etc.) you will be insuring the damages that you may cause to a third party.

Is it mandatory to purchase home insurance as a renter?

The answer is: no. But the sensible thing to do, even if the law does not oblige you to do so, is to do it.

If you enter a tenant’s house, you are obliged to respond to the damages you cause. If they are to the property you will have to do it before the owner or his insurer. But you will also have to answer, in front of a third party, for those who use their property.

Leaving a badly extinguished cigarette, the fireplace on or the tap running can be very expensive oversights. Damages to the property could be substantial, but those caused to third parties even more so. And if your landlord has insurance to take care of these damages, prepare yourself because the insurer will not miss the opportunity to claim you.

conclusion

If you have ever been told that it is mandatory to take out home insurance, you have been misled.

It is not to write a mortgage. Nor if you are a tenant of a home, much less if you are the owner.

But one thing is the obligation and another to use common sense.

If you are a tenant who unless you have insurance that covers civil liability, will protect you from the consequences of carelessness. If you have a property you own in the house, insuring the theft will not hurt you. Nor is it too much for you to buy legal protection or assistance at home. Having legal advice or repair service can be helpful, as well as cheap.

Finally, if you are on the way to being a homeowner or already are, and since the whole house is yours, you can also buy all the coverage that is of interest to you.

It may also interest you: What guarantees do I need in my home insurance?

I hope you enjoyed this short article as much as I did writing it.

Now it’s your turn, have you ever felt compelled to take out home insurance?
I will be delighted if you tell us in the comments.

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