Tuesday, May 14, 2013

Insurance extras and add ons

Doesnt everyone find it annoying when you try to take out an insurance policy and the agent on the phone sounds like a robot! Trying to sell you add ons such as personal injury, car hire and the like. Most of which cost the insurers next to nothing and are being supplied by 3rd party companies and are so riddled with loop holes and exclusions that you will never get to claim from them.


Why you may ask? Take car hire for example majority of the time it is for when your car is a write off or stolen and has to be handed back when you are paid out. Sometimes it can take weeks for a car hire claim to process or even for the car to be deemed a write off in the first place and when they pay out which when there is hire charges involved will be much quicker than usual you have to return thecar within   24 hrs in most cases. If the accident is not your fault then you can claim all this through the 3rd parties insurer anyway.

The same goes for personal injury cover if not your fault you can claim it all off the 3rd parties insurance, if they are uninsured then you must go through the MIB which is a bit more difficult but is a possibility, also with all the exclusions you have to be half dead to claim anyhow!

Add ons are big business for the insurance industry most are operating with underwriting losses paying out more than the premium they bring in. But these extras are what they sell to be profitable as they are separate to the insurance.

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