Wednesday 14 August 2019

Does anyone ever read the terms and conditions? The need to knows about insurance

Author: Cambridge Web Marketing

The terms and conditions of any product can be long, written in tiny print and full of jargon. Yet it’s vital to read them, especially when it comes to insurance policies. If you don’t, you may end up regretting it.

Read and sign

We’re all guilty of skipping the ‘read’ part and just signing a document. It’s no surprise; according to @Shoutout_UK, it would take an average of 76 working days to read all the terms and conditions of every policy we sign up to.

Whether it’s home insurance or critical illness cover, being aware of the following points is key to ensuring you have the right policy.

Payment schedule

Top of the list is understanding the cost of the policy, how you will pay and when you will pay. You also want to know what happens should you miss a payment and any extra fees this may incur.

Cancellation rights

When you take out an insurance policy, you have consumer rights. This includes when you can cancel your policy. You have a 14-day window from when you sign to change your mind without incurring any costs. If you try to cancel after this date, you may be liable for certain fees and costs. These will be detailed in the terms and conditions.

Sharing your information

Data protection is important, and you need to know what is happening to your personal information held by the insurance company. Look for the section that talks about how your information is stored and processed, as well as who has access to it. As part of their service to you, a financial company must make it known who else has access – they will be referred to as ‘the third party’. You also want to know how this information will be wiped if you ask them to do so.

Length of contract

Contained in the terms and conditions will be specific terms that relate to your policy. One is the length of cover being offered. The length of cover will vary, so check that what you are signing up for is what you think it is.

Making a claim – what is and isn’t covered

When you take out an insurance policy, you need to be clear what is and isn’t covered. Hopefully, this will have been explained to you, but you need to check. On home and buildings insurance, for example, is storm damage covered? How would wear and tear or general upkeep affect a claim in this instance?

All too often, people think they are covered by an insurance policy only to find at the worst moment that they are not. Terms and conditions are important, and you should read them before you sign up to the policy. Our insurance team is here to help you find the right policy and understand all the terms and conditions too. Get in touch to find out more.

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Written by: Cambridge Web Marketing