Let’s be honest: When it comes to auto insurance policies, nobody really reads all that fine print. Estimates say less than 5% ever read their insurance policy. But it’s in the hard-to-understand clauses that the nation’s insurance carriers are shrinking insurance protection, leaving drivers uncovered or under-covered. It’s usually only after a serious auto accident that injured people are shocked to find out that their “full coverage” auto policy is often woefully inadequate when its needed the most.
During the Bush administration numerous legislative changes and court decisions have more often than not favored the insurance industry.
Exclusions within the policies that the policy owner is unaware of are designed to limit payouts by the insurers on claims. Insurers use non-duplication clauses to allow themselves to deduct amounts paid under medical payments coverage when they pay under uninsured motorist coverage although they collected premiums for both types of coverage.
Consumers need to ask very direct and specific questions to their insurance agent about their coverage. Continue to ask until you are satisfied you fully understand what will and won’t be covered. Remember, he’s your agent …he should be working for you. A good conversation with your agent will avoid an unnecessary shock when the time comes for you to make a claim and recover under the coverage you’ve been paying premiums for.
Richard J. Arsenault, 2011
