“Consumers should know what they want to buy and tell the truth.”
Says James Harrison, chief executive of Insurancewide.com, and adds:
"Buying the policy is not enough; you need to understand it and to understand the mechanics of making a claim. Ask yourself why you are really buying insurance. If you are not sure about every aspect of the policy it could be a wasted investment and you will have false peace of mind about the extent to which you are covered. Start by deciding what you need to be covered for and whether you can ultimately make a claim for those things.”
Tell the truth
It is your responsibility to disclose all information to the insurers. Although you may think that you are making a saving by paying less for your insurance now, it is in fact a false economy. You will end up paying more in the long run if your insurer refuses to settle a claim due to non-disclosure or if you have bought the wrong type of policy. It is your responsibility to tell the insurer, not the responsibility of the insurer to find out."
Top tips
- Travel Insurance should cover you for any medical costs you may incur while you are abroad as you do not have access to the NHS or equivalent health service. There are also cancellation costs, the expense of replacing any lost/damaged personal possessions and any expenses you may be liable for to consider.
- Buying a travel insurance policy without telling your insurer that you suffer from pre-existing medical conditions is pointless as your insurer can refuse to settle a claim, even if it is un-related to your medical condition.
- Life insurance is designed to protect your assets when you die. If you have dependents or any outstanding debts such as mortgage or loan repayments, life insurance is a wise investment.
- By not telling your insurer that you either smoke or suffer from any pre-existing medical conditions, your family that will lose out if the insurer refuses to pay out in the event of a claim.
James Harrison continues; “Insurance is ultimately a promise by the insurer to pay out but this is one industry where the devil really is in the detail. Watch out for limits, exclusions and optional policy extras. Shop online to make thorough comparison and compare like with like. Don't just focus on price; focus on the detail of the cover. Don't be fooled by ridiculously cheap premiums - they often carry huge excesses, some of which are disguised as compulsory when in fact you can reduce your voluntary excess limits in return for a higher premium."
Private medical insurance: News update: May 2007
