Insurance is one of the most important things that comes in monthly, quarterly or once a year and costs as a fixed cost. Whether health, life or accident insurance, car insurance or private liability insurance – no one wants to spend more on insurance than necessary and so everyone tries to keep the expenses for risk protection with optimal performance as low as possible.
More and more companies vie for the favor of consumers. As a result of this increasing competition in the insurance market, changing the policy or changing the insurance provider for insurance customers can often mean enormous savings for the same service. Numerous insurance comparisons and tariff calculators help in choosing the right tariffs. However, consumer advocates warn against a careless change, because a premature conclusion of a contract can pose serious risks. In a two-part article, I would like to go into the subject of insurance a little more detail. Find out about pitfalls when changing or signing contracts and get information about what insurers can claim from their customers.
Check insurance contracts regularly
Insurance experts advise every insured person to check his policies regularly for relevance, timeliness and the relationship between price and performance. First of all, you should check whether there is still a need for some insurance companies. Pensioners, for example, no longer need occupational disability insurance, and young couples who have moved together do not need two home insurance policies.
Subsequently, it is necessary to estimate whether house insurance, private liability, car insurance but also foreign health insurance or legal expenses insurance are up-to-date and sufficiently dimensioned. So you avoid a lot of trouble and disappointment, in case the damage should actually occur. Especially now before the holiday period, a check of the insurance documents should be mandatory. Consider risks such as a house vacated for several weeks, a sudden illness or a traffic accident abroad.
Insurance traps especially in personal insurance
While insurers in property insurance usually have to offer quite a similar amount of insurance, which often differs only by the price, there is often an increased risk for personal insurance to fall into a trap and to pay too much money for too little power.
In addition to accident insurance, you will find clauses that are often mislabeled, especially in the case of life insurance, disability insurance or long-term care insurance, which can lead to the cancellation of benefits in the event of actual loss.
Truthfully answer health questions
In the case of personal insurance, the tariffs are based both on the desired scope of services and on the personal requirements. A gender-specific distinction may not be made since December 2012 for new contracts. The so-called unisex rates apply.
However, insurance companies often require detailed information about illnesses, rehabilitation measures, but also about dangerous leisure activities and much more. These include health issues as well as statements about possible past rejections of applications, as well as stays abroad and regular medication. Even at the risk of having to pay a risk premium, you are well advised to answer all questions as truthfully as possible. Just “forgotten” pre-existing conditions or hidden additional risks take the insurance companies like to use the occasion to refuse services in an emergency.
The obligation to provide information to insurance companies has limits
The scope of the questionnaires and also the time periods to be traced vary, of course, from provider to provider. However, the obligation to provide information to your insurance company also has its limits. According to a ruling of the Federal Constitutional Court of July 2013 (Ref .: 1 BvR 3167/08), insurers should not oblige their customers to provide a general health information. Rather, the transmission of personal data must be limited to what is necessary for this. When making an application, pay close attention to the questions you are asking, but do not hesitate to sort out too inquisitive insurers in your choice.
In the second part, you will learn, among other things, what insurers may ask and what you should pay attention to when entering into insurance contracts online.