Insurance, we all need it. Life, car, home and contents, there’s a lot to unpack.
Choosing the right coverage
There are so many things that might not be automatically included when you’re choosing coverage. Do you need it just for theft, or do you also need protection against damages? If it’s for a rental property do you need coverage for damages, or just your possessions? These are all questions you need to ask yourself when deciding what coverage is right for you, and your answer is never going to be exactly the same as someone else’s.
A good, ethical insurance provider will go through all these questions and more with you, but some more predatory ones may not. That’s why you also need to:
Don’t be fooled, an insurance company will do anything it can to avoid paying out claims. They are after all businesses out to make money. Luckily there are lots of great resources online collecting data and providing consumer scores on all of these companies.
And remember, if you can’t find the information you need on a company, don’t sign their contracts!
Don’t just look at the bottom line
The cheapest contract won’t always be the best value for money. They might charge extra for key coverage you need, or have a higher excess which means they’re covering less of the cost.
Don’t just settle for the first provider you find online, instead make sure you get a quote from every single provider you can find. Many companies will do their best to price match or beat other contracts, so don’t be afraid to take advantage.
Understand the coverage
All insurance policies have conditions, exclusions, and fine print. Make sure you read any contract thoroughly, and seek help and advice if you don’t understand something or feel like you’re being taken advantage of. Our financial mentors are happy to help you navigate any pitfalls you might encounter.
It is incredibly important to be honest with your insurance provider when you sign up with them, and every interaction thereafter. If you’ve omitted something that would raise your premiums or otherwise change the contract you signed, then they can choose to reject your claims or even cancel your contract.
Insurance can seem like a daunting task, but it’s essential for most people. If you feel like you need help navigating such a complex subject, talk with one of our financial mentors
Phone: 0800 345 123
Live chat: www.moneytalks.co.nz
We are available to help Monday to Friday 8am to 8pm, and on Saturdays 10am to 2pm. We are here to help you.