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What You Need to Know About Insurance Companies

Jenna Taubel

Jenna Taubel About The Author

Sep 20, 2018 6:54:00 AM

Having insurance is one of the keys to protecting your financial future. You can save thousands of dollars by having insurance. However, there are several important facts that you will need to know about insurance.

Insurance Companies Are Not Your Friends

Lawyers say that insurance companies aren't generally on your side. You pay a premium in exchange for coverage. However, this does not mean that your insurance company will always work in your favor. Insurance companies are in the business to make money. That is why sometimes they seem to do everything in their power to under-compensate you. If and when you have some kind of accident, you need to be very persistent about collecting evidence and submitting your claim.

Your Credit Score Will Affect Your Insurance Rates

Your credit score is more important than many people think. Many insurance companies will check your credit before they provide you with insurance. You may have to pay more for insurance if your credit is not up to par.

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A Picture's Worth a Thousand Words

If your property or vehicle has been damaged, then it is important for you to take photos of the damage. You will need to provide evidence to the insurance company in order to get them to approve your claim. Pictures are the best type of evidence that can be used to support a claim.

You Can Save Money by Paying Your Premium in Full

Many insurance companies will allow you to pay your premium every month or every year. If it is financially feasible for you to do this, then you will need to pay your premium in full at the beginning of the year. You may be able to save money if you pay upfront. Many insurance companies will charge you convenience fees if you pay each month.

Having insurance is one of the best things that you can do to protect your finances. However, it is easy to lose money if you do not know key facts about the insurance companies. That is why it is important to learn all you can about your insurance policies.

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We do our best to provide helpful information but we cannot guarantee the accuracy or completeness of the information presented in the article, under no circumstance does the information provided constitute legal advice. You are responsible for independently verifying the information if you intend to use it in any way. Additionally, the content is not intended to be reflective of First Alliance Credit Union’s products or services, for accurate and complete details about our product and service information you must speak to an advisor at First Alliance Credit Union.