If you’re a complete newbie in the world of insurance, all the complicated words might be scary to you. However, fear should not keep you away from getting insurance, because it protects you and your family from many harms. In some cases, you have all the right to be wary of insurance because it’s very easy to get scammed and end up paying for completely useless things. Whenever you’re getting out a new credit card or applying for a loan, you get offered all sorts of insurance types, most of which are called ‘junk insurance’ because they do nothing for you. So how can you protect yourself from these scams and get a refund if you fall for them?
What is junk insurance?
Extra expenses you might be paying for are not only annoying and damaging to your wallet, but also unethical. Scam companies use various techniques to sell you insurance that requires a ton of provisions and conditions for the insurance to be valid, yet you still need to pay for it. This junk insurance is add-on insurance to your regular insurance plan, but it’s simply useless. Sometimes, this insurance looks like a rational policy that the user can never use, but other times, it’s worded poorly and vaguely, and you’re not even informed of its existence. When signing any documents, make sure to keep an eye on words like “add-on insurance” if you don’t understand any of the other purposely-complicated words.
Do I have unwanted insurance?
Do you think you’ve been duped into paying for junk insurance? If you’re not sure about whether or not you’re paying for anything unwanted, examine your loans and credit card bills. You might be paying regular insurance to these accounts, but also doing some interest as well. Even if you don’t have your previous statements at hand, you can still contact your financial institutions and request your statements so you can review them. When you dig out your statements, keep an eye on words like Asset Protection Insurance, Consumer Credit Insurance, Guaranteed Extended Warranty Insurance, Mechanical Breakdown Insurance and any of their acronyms.
Can I get my refund?
People who realize that they have been paying for unwanted add-on insurance might be happy to know that they can get a refund. It’s possible to get your money back and get compensation for your financial loss. The best thing you can do is approach an agency offering junk insurance refund to assist you with the case. These professionals will go over your statements, identify fraudulent insurance, take care of any forms and court proceedings and keep you informed of the happenings during the court process. This is undoubtedly the easiest and safest way to get your money back. It’s very easy to submit your claim and you don’t even have to pay any fees if you don’t win the case. You can get back thousands of dollars in different cases!
How to avoid this in the future
It is possible to avoid any insurance scams in the future and here’s what to keep an eye on. Firstly, if you’re changing insurance providers (or getting your first insurance provider ever), make sure to do your research. Check out all the websites that regulate insurance and study the company’s records. In some countries like Australia, there is something called the Securities and Investment Commission which collects a database of insurance firms as well as banks, auto dealers, warranty providers and other companies that sometimes sell junk insurance. If you can find the name of the company you’re planning to work with in the database, it’s best to give up on your business deal and continue searching for something better.
Don’t let this new information deter you from getting a new credit card, insurance or loan. As long as you’re careful when choosing your provider and know where to turn for help, you can rest assured your money is safe and sound and you don’t have to pay for any garbage plans.
