Tuesday, June 6, 2017

Insurance that has No Coverage

There have been several instances wherein people are fraudulently sold certain insurance policies only to find out there is no coverage.

I am going to outline 3 such insurance scams that are making the insurance companies rich while you end up with absolutely no coverage.

What can you do? ASK QUESTIONS! There is never a bad question even if you ask the same one over and over again. Never be pressured into purchasing insurance coverage that you know you will never need.

Most importantly don't get sucked into those stupid commercials you see on the television promising a home warranty or vehicle maintenance insurance policy......You Won't Be Covered.

Pet Health Insurance 

There are several companies that offer pet insurance. For an average of $400 per year for each pet that you are insuring. The pet insurance promises that there will be coverage in the case of accidents such as if your dog or cat gets hit by a vehicle. Pet insurance also promises that your dog, cat, bird or fish will be covered in the case of cancer, arthritis and other common ailments when a pet becomes older.

First of all, your veterinarian will 99.9% of the time not accept this coverage because they know it is a scam and have opted out of even being on the insurance company's list of veterinarians.

Breed specific policies claim they will insure certain breeds that are AKC registered and may be a show dog. Again, if you are travelling more than likely the closest vet will not accept this insurance.

The bottom line. Don't be fooled by an under educated sales person who has no conscious in selling you a policy. These sales people work on commission and can be rather convincing.

Home Warranty Insurance

This type of insurance claims to cover the cost of appliance repairs such as your dishwasher, refrigerator, stove as well as your heating and air conditioning.

What a joke!

You will pay a high premium, on average, $500 per year over years only to find out that the policy covers absolutely nothing. Your brand new dishwasher dies, guess what, if it is brand new you are already covered under the manufacturer's warrantee and your dishwasher will be replaced for free anyway. The same with your new heat/air unit.

The stipulations on this idiotic insurance is that the appliances have to be brand new. You do not need insurance on a brand new appliance or heating system. It is already covered.

It is not the insurance you need to insure your home. You need homeowners insurance in case of a fire, flood or other catastrophe.

Vehicle Mechanical Insurance

Even your local garage won't take this insurance.  Besides, there are huge stipulations on this one. Your vehicle has to have under 15,000 miles and less than 15 months old.  This is on either leased or purchased vehicle.

Let me tell you this. If your vehicle is this new it is still under warrantee for any major issues you may have with it. So, why are you purchasing mechanical repair insurance at a deductible of $250 plus your premium of $500 per year when you are already covered.

Automobile Insurance is the only policy you need. It covers accidents, animal hits, hail, liability as well as uninsured and under-insurance motorist coverage.

I have worked in the insurance business for over 15 years. Settling claims from wrongful death to garage keepers policies and general liability. I was even the first adjuster in the United States that handled all of the dog sitter policies for the country.

Trust me, I have seen it all and then some. The only insurance policies you need are:

  1. Homeowners or Rental Insurance
  2. Automobile Insurance
  3. Health Insurance
Before you sign your name on any new insurance policy or plan, read the fine print. It is the fine print that provides you with all the information that your policy will cover. Don't waste your money on vehicle repair insurance, home appliance insurance or even pet insurance because you are going to find out the hard way that you have paid your premiums only to find out you do not have any coverage. 

Eating Healthy - Living Healthy - Saving Money

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