When it comes to insurance, you should definitely be aware of your rights!
There are consumer rights in every state when it comes to all forms of insurance. Generally at a minimum, insurance companies can’t make their coverage decisions off of single aspects of your history, and they have to be truthful to you about what they cover and don’t cover, so you can make informed decisions about your policies.
Insurance companies must provide written disclosure of their policy benefits, regardless of the type of insurance. They must tell you different coverage options, what the different benefits cost on a monthly basis, and to what extent the policy will cover you. You also have the right to accurate information when you’re making your insurance decisions. Insurance companies are legally prohibited from providing any incorrect or misleading information when it comes to their policies. They also can’t promise introductory rates that then go up, as this can coerce people into buying policies that are unnecessary.
While insurance companies may pull your credit report when determining the coverage you are eligible for, they are not legally allowed to base their coverage on this alone. They may look at other relevant information, for instance, your driving record when it comes to an auto policy, but they can’t base their offer of coverage on your credit rating and nothing else.
As a consumer, you have the right to cancel your policy at almost any time. Some companies may have requirements based on how much notice you must give, but you can always cancel. They should also then refund you whatever premiums you had paid in advance for periods after the cancellation date. The insurance company must also give you notice before canceling your policy. They have a window of time at the beginning to cancel it for any reason, but after that window (usually thirty to sixty days) they must have a reason, such as nonpayment.
Once you have coverage, you also have protections and rights in place when it comes to filing an insurance claim. Once you’ve filed a claim, in most cases the insurance company will send a claims adjuster to examine the damage. You should certainly cooperate with the insurance company while they investigate your claim, but also keep track of the conversations you have about the claim.
Once the adjuster has assessed the damages and has determined an amount that the insurance company should reimburse you for, you do not have to agree. If you feel you are being offered an unfair amount, you can have the adjuster meet with a contractor, to discuss repair costs and whether they’ll be covered by the insurance company’s proposed reimbursement. If the insurer won’t resolve the issue, you have the right to hire an attorney to make your case.
Being aware of your rights when it comes to your insurance can help you be sure to get the coverage you need, and that you will be treated fairly.
