Tuesday, Aug 30, 2016 at 18:27
Well, my H&C policy fell due today, so I spent most of yesterday sorting the wheat from the chaff. What a job!
The average score level of insurance companies on Product Review is around 1.5 out of 5. What does that tell you? Horror story after horror story.
However, I do think a lot of people are their own worst enemy, by not being careful and thorough, when taking out policies, and when making claims.
The people who practised great attention to detail on all their policies and claims seemed to have the greatest success - but nearly all of those also related what a stressful exercise it was.
One bloke outlined how he kept a detailed photographic and written record of everything in his house and outbuildings - and then took detailed photos after the event so that no arguments against any claim could be produced by the insurance company. He spoke of what an important factor that was.
So, working on the basis of the devil you know is better than the devil you don't (and seeing the number of insurance companies that have been merged, taken over, or carried out other corporate stunts that generally means the shareholders and directors assume greater priority than customers) - I got on the blower and started negotiating with my current insurer over the major ramp-up in the H&C renewal premium.
I pointed out that their requested premium for the renewal, was a massive increase over any CPI, interest rate, pay or pension increase rate.
I pointed out how their renewal figure ($910) was around $100-140 dearer than the quotes from any other insurer of reasonable reputation - and what could they do, to adjust their renewal figure?
Not unsurprisingly, they immediately dropped $100 off the renewal figure, to match the highest of the other quotes.
It was done without even presenting too much of an argument, on their behalf.
I have little doubt that they add $100 to every renewal notice today, on the basis that half the
population will pay it with grumbles - and the other half will buck, whereby they can cheerfully knock off the added extra amount, to bring it back to what they really only wanted, anyway.
It's like bargaining at a Middle Eastern market, with insurance today.
I also wanted a substantial increase in the insured value of the contents (as we've just done a detailed stocktake and costing, and realised we were actually under-insured on contents value) - and they cheerfully agreed to that, for just another $25 - without even requesting amended valuations, lists, or anything else.
So I get the impression our contents valuation is still probably a lot less than the average.
End result, we're still insured with the insurer with the
bright red webpages and documents, and they still rate amongst the highest insurance score levels on Product Review, with a huge 1.8 out of 5.
They've paid out on a couple of our (relatively minor) car insurance claims without too many problems, so I'm trusting they will continue to do the right thing.
A broker told me many years ago, dealing with insurance companies is essentially a "good faith" act.
They rely on you providing all the required information truthfully and correctly, in good faith - and you rely on them doing the right thing, in good faith, when it comes to a payout.
The problem, it seems, in todays world, there's not too much of that "good faith", on many insurance companies part.
Cheers, Ron.
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