Tom's Blog
The word “insurance” can mean lots of things to many different people with the meaning interpreted as either a positive or a negative. The truth is that “insurance” has BOTH positive and negative qualities, but sometimes the ugly truth about making insurance claims remains this dirty little secret and this secret needs to be exposed.
Should You Turn in A Claim?
Imagine being on vacation when someone vandalizes your car resulting in approximately $1500 worth of damages. You immediately notify your car insurance agent who advises that your deductible is $1000 and from there the claim is turned over to your auto insurance company for handling. Should you have turned in that claim given that the out of pocket expenses (total damages less your deductible) totaled $500? This is where “insurance” can be a negative entity and the question remains as to whether this should have been turned in at all.
Unfortunately, many insurance companies view having too many claims, even if they are small, on their record as a negative thing and may result in a policy cancelation leaving you scrambling to find alternative insurance coverage.
Get a Clue About C.L.U.E.
That’s right; it’s time to get a clue! C.L.U.E. is a report that allows insurance companies access to claim histories AND reported claims by every insured with every insurance company. Not to say this is a bad thing because it actually helps keep your insurance rates down if you are a responsible homeowner and driver in comparison to the person who drives under the influence and has burned their home down several times.
Take note, though, of the words “reported claims” in the above context. You may be wondering how this affects YOU. There is a difference between making a claim and simply reporting one. Did you know that reporting a claim, without receiving any compensation, could negatively impact you and your insurance coverage? That’s right! Sometimes having small or unpreventable claims, or even just reporting a claim without compensation, predicts losses on a larger scale according to the statistics in the insurance industry. This is where having the right type of insurance agent makes a huge difference all around.
Your Independent Insurance Agent Works for You
If you have a claim it is best to speak FIRST with your local independent insurance agent and not with the insurance company so we may advise on whether it is in your best interest to make a claim. Independent insurance agents work for YOU and not the insurance company. We will work for you, whereas direct insurance agents may automatically report any mention of a claim even if you don’t wish to receive payment. This “reporting” of a claim may mean the difference of a cancellation or continued insurance coverage for YOU. Let us guide you before making any phone calls to the insurance company. Your best interest is OUR best interest.
Dirty Little Secret Revealed
You pay a lot of money to insurance companies to protect those big investments such as your car and your home. Maybe you will need insurance one day or maybe you won’t, but the point is, you must have protection for those things that you have worked so hard to obtain. Unfortunately, bad things happen to good people all the time so remember that insurance can be on your side if you know the ugly truth about making insurance claims. Contact us TODAY at 866-869-3335 or visit our website at www.paramountinsurance.net so that we can look out for YOUR best interest.
