Navigating the complex landscape of insurance can feel a bit like negotiating a minefield, with hidden hazards ready to trip up even the most diligent of consumers. Amongst these are six common insurance pitfalls which are often overlooked yet have the power to leave Kiwis without enough cover or entirely excluded from their expected benefits. Find out what to look out for and get practical advice on how to avoid these common insurance pitfalls.
1. Full Disclosure Matters
Not providing all relevant information to your insurance provider could result in your claim being denied or your policy being cancelled. Whether it's past claims, traffic offenses, criminal records, or medical history, when it comes to insurance, full disclosure is vital and overlooking certain information could prove costly.
2. Exercise Due Diligence
Just having insurance doesn’t absolve you from responsibility. You’re still required to take due care when it comes to looking after your possessions. Negligence, such as leaving keys in the car, bags unattended, or an open window while you’re away, could invalidate your claim.
3. Understand Your Coverage
Misunderstanding policy inclusions and exclusions is a common stumbling block. But consumer guides available online and through insurance providers can help explain the often-misunderstood areas of insurance, such as calculating a house’s sum insured, excesses, and gradual damage and resultant damage, while insurance advisers can offer guidance to help consumers better understand their insurance policies.
4. Ensure Roadworthiness
A valid warrant of fitness doesn't necessarily guarantee insurance coverage. Regular maintenance checks are essential too, especially on critical components like tyres, brakes, and windscreen. Not keeping up with maintenance, such as having worn-out tyres, could contribute to an accident and jeopardise your claim.
5. Examine Excesses Carefully
When making a claim, excess is the amount of money you need to pay first toward any loss, and your insurer then ‘tops up’ your contribution up to your policy limit. While typically one excess is payable per event, complexities can arise when multiple incidents occur within a claim. Which could mean paying more than one excess. To avoid any surprises, ensure you understand what excess amount applies in each event.
6. Scrutinise Credit Card Insurance
Booking travel arrangements on your credit card often lets you take advantage of certain perks such as complimentary travel insurance, but this type of cover usually comes with limits and exclusions. It's vital you review the insurance cover being provided, especially when it comes to trip duration and age restrictions.
Navigate The Insurance Landscape With Confidence
Navigating the intricacies of insurance requires vigilance and understanding to ensure Kiwis steer clear of these six common insurance pitfalls. Another important way to ensure your insurance provides the right level of cover for your circumstances, is to get suitable advice from an insurance adviser.
Mortgage Express branded advisers can put you in touch with appropriately qualified insurance advisers who can help you make informed choices about insuring the important things in your life: your home, car, furniture, you and your family. Get in touch today.
