Why are insurance policies impossible to read?
Reading an insurance policy can be nearly impossible at times. The insurance carriers use standard policy forms, which are catered specifically to you. For the most part, anyway. You may wonder what the policy is actually saying, and rightfully so. It is your money paying for the coverage so you should know what you are able to get out of it, or what you will not.
There are numerous exclusions, add-ons, and terms and conditions that most people skip right over, which is where they get caught with their pants down. The terminology used in a contract is one of the key issues that people have when trying to decipher their coverage. A rocket science degree cannot even help you in most cases.
Unfortunately, there are a few genuinely good reasons why the contracts are so hard to read. Contract attorneys will argue the point, however. Most of them claim that contracts are long and drawn out to point of making it impossible for a normal everyday person to read through the entire thing. And once that is read, there is still the fine print that 90% of people ignore.
Insurance compares state the contracts are so drawn out because everything that is covered within the policy must be outlined. By law, each contract must inform the consumer on what they are getting for their money. It is not like the insurance companies are trying to swindle you. They are just simply being thorough.
If you have noticed it is not just the insurance industries that use this strategy. When you compare credit cards you will see that the terms and conditions for them are just as long, and just as small. It is a good thing that computer generated policies can be downloaded onto your device. This allows you to zoom in and really see what is going on.
Whether you believe that an insurance contract is impossible to read due to the insurance agents, or due to legal requirements, or maybe even a little bit of both, there are a few quick tips you can use to help you understand them a little bit better.
Use the help of a good agent. One that you know you can trust. They will be able to point out the areas of the contract that you need to be aware of, and they can help you decipher it.
Have a lawyer look it over and explain the main sections of it. Or if you have specific questions after you read it, hook up with an attorney to answer them for you.
It is always a promising idea to get a second opinion. Go through the contract with your agent and then double check it with a lawyer.
Pay close attention to any words that are all CAPITAL LETTERS. They are put in that way for a reason. Read carefully what it says because it was meant to call out that specific area, so it will be something that could easily affect you in the case of a claim.
Insurance policies are impossible to read because the length of them, and the terminology used in them. Keep the link above handy because it lists out every definition for every term that the agent will use. If you are in doubt about a meaning, take the time to look it up. Ask questions if there is anything that you still do not understand, or that you feel will negatively impact you in a future date.
Make sure you do not get frustrated and sign the contract because you do not want to deal with reading, and understanding, the entire thing. That is how you get stuck in a policy that is riddled with holes and that will cause you nothing but trouble if you must ever file a claim.