How to increase the chances of your insurance paying out
Friday, 18 February 2011 11:25
By Kate Saines
There's nothing more maddening than attempting to make a claim on your insurance only to find your insurer won't pay out.
All that time painstakingly hunting for the best quote, renewing policies not to mention the cost of paying premiums, feels futile.
It's infuriating and there's absolutely nothing we can do about.
Until the next time, that is. Because there are a few tricks you can have up your sleeve to increase the chances of your insurer paying up should you need to make a claim.
Read the Small Print
It's probably the last thing you wanted to hear, and you would probably rather watch paint dry than do it. But knowing exactly what your policy covers before going ahead and making the purchase is vital.
Stephen Ebbett, director of online insurer Protectyourbubble.com said: "Too many people don't check the terms and conditions before buying.
"A reputable insurer won't make the small print inaccessible and will be completely transparent about their terms, so you won't be disappointed if you are forced to make a claim."
It certainly pays not to make assumptions. Research by AXA into travel insurance found consumers did not understand what they were covered for, with 60 per cent wrongly believing they would be covered for accidents even if they were under the influence of alcohol.
Even if you already have insurance in place, it's recommended you check the details. For example, if you have an extreme white water rafting holiday planned, it could be worth checking your annual multi-trip insurance policy to find out if you are covered for dangerous activities.
Likewise, at Christmas, it might be a good idea to give your home insurance contract the once-over to find out if you are covered for the extra presents in your home.
Some insurers apply an automatic uplift, according to Moneysupermarket.com, at no extra cost but there are variations.
"Being underinsured," said Julie Owens, head of home insurance for the comparison website, "can have a big impact on any home insurance claim you make.
"For example if you have £45,000 worth of contents in your home but are only insured for £30,000, your insurer might only pay two thirds of a claim, even if it is less than £30,000."
Be honest
Making sure you provide as much information as possible when providing details to a new insurer will be a great help.
Giving false information, particularly if you are taking out car insurance, will hinder any claims you make.
Joe Pattinson of BMW Group Financial Services, which provides BMW Car Insurance, said it's important to ensure any changes to your circumstances are reflected accurately in your documents.
"Things like annual mileage, the overnight location and use of the car can vary over time.
"If anything is incorrect or you think you have omitted to tell your insurer something which may affect your quote or cover, contact your insurer immediately and make sure this is corrected."
Read more: The biggest insurance myths revealed
Keep Receipts
This tip is an essential for home insurance customers. Stephen Ebbett of Protectyourbubble.com said: "Your insurer will usually ask for proof of purchase, particularly for new items, so keep receipts.
"This not only proves that you were the owner, but also shows the value of the items that need replacing."
Many insurers also advise their customers to take pictures of items as proof of ownership. This is a particularly good idea if you own something very valuable, rare or specialist.
In the case of car insurance, make sure all your documents are easily accessible, but in a safe place.
Joe Pattinson, said: "It is important to keep all your policy information, and key documents - such as MOT, V5, insurance certificates etc - in a safe place to ensure that you have all the necessary paperwork to hand when reporting a claim, not least in the case of theft."
However, it's important not to keep them in your car in case they fall prey to a thief.
Be helpful and provide detail
When making a claim be sure to provide as much detail as you possibly can.
As already mentioned, having receipts and photographs of items which have been stolen will be of huge assistance to the insurer.
But it will also pay to have a good memory of events.
Mr Ebbett of Protectyourbubble.com, said: "If your mobile phone has gone missing, but you aren't sure whether it's been lost or stolen, knowing that you last zipped it away in your handbag is a helpful detail."
He explained that having evidence of the missing item such as a phone bill showing unauthorised calls, will also help in the claims process.
Make sure you report a stolen item to the police and get a crime number too.
Act fast
Mr Ebbett also urges anyone who has to make to a claim to do so quickly.
"If you have been injured or fallen ill on holiday, for example, your insurer may need to act on your behalf, to organise hospital care or repatriation.
"The sooner you call them, the smoother the process for both the policyholder and the insurer."
This advice is echoed by car insurer, BMW Group Financial Services, who advise motor insurance customers to call as soon as possible after an accident.
"This allows the insurer to assign an approved repairer ASAP and will often lead to the provision of an inclusive hire car to keep you on the road."
Choosing the right insurer and policy
Of course, being unable to claim is not always our fault. There are a few insurers out there who are not necessarily working to the standards of their peers.
Mr Pattinson urges people to always check out the level and quality of service an insurer provides before taking out a policy.
He said the Financial Ombudsman Service now publishes data on how insurers handled customer complaints. So you can find out how a potential insurer is performing.
It's important not to just sign up to the cheapest insurer either. Often they are cheap for a reason.
Mr Pattinson said cost was a determining factor when choosing insurance. "But," he added, "customers are urged to consider all factors to ensure there is a balance between level and quality of cover and cost."
Finally....
Naturally you don't really want to make a claim. Making sure your home's contents and car are safe and secure using appropriate measures will help prevent the worst happening.
Small things like making sure your car is parked in a garage will not only provide added security, it will also help lower your premiums.
As will having decent car and home alarms fitted. And make sure you do not leave your valuable belongings on display.
Use the Myfinances.co.uk comparison tools powered by Confused.com to find the best deal on all types of insurance.
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