Whether you are starting a business, buying a car or a home, you will most likely need an insurance. However, no matter how straight forward this might seem, there are things to look out for. Big banks and insurance companies all over the world are in most cases offering more than people have even signed up for. One in four people are victims to junk insurance. This term is reserved for any additional and unwanted features that you end up paying for in your insurance package or any other offer. The problem is that people do not even ask for it. The good thing is that people can refund their junk insurance if they get the right help. Targets are usually young people looking to buy their first home, or elderly people who are seeking health insurance. There is always something that can be easily overlooked. Junk insurance is usually sold by giving obscure information about the full extent of the coverage. In most cases, you will not receive the full comprehensive insurance. And this can result in serious problems in addition to money lost. Here is everything there is to know about getting a junk insurance refund.
The extent of the problem
In order to understand whether you can claim junk insurance refund it is important to become familiar with the extent of this problem. Some policies can rack up costs well over $2000 annually, and they give you no additional value. It can come through a number of things. Some of the most prominent tactics used include putting a lot of pressure on the clients and using unfair sales practices. In other instances, junk insurance will simply overlap with other packages that already cover the same thing. This is done by using different wording for the same feature. If you are unsure about the insurance you bought, you can contact the experts in the field and refund junk insurance with no additional worry. Lastly, the add-on insurance is also mostly sold without the person’s consent, which also makes your eligible for a refund.
The CCI insurance
Banks and insurance companies will try to sell consumer credit insurance (CCI) along with personal loans, credit cards, home loans or even car loans. This type of insurance is completely optional and it is sold to clients when they apply for a credit card or a loan, usually without them even knowing. It is supposed to provide coverage when a person is not able to meet the monthly repayment deadlines in case of sickness, unemployment, injuries or even in fatal cases. The reality is that most people do not ever benefit from this type of insurance or they are rarely eligible to claim it. No one is excited about owing money to a bank or an organization. However, the people selling the services will put clients under even more pressure and use predatory tactics to sell them this common type of junk insurance.
GAP insurance
Guaranteed Asset Protection is also another common type of add-on insurance which is designed to cover the difference between the amount owed under a person’s car loan and the amount of money that the insurer will pay. The problem is that without a comprehensive insurance, GAP insurance shouldn’t even be in your contract. People are also eligible for an insurance refund claim on these, since unfair sales practices are commonly employed.
Insurance on your warranty
Extended Warranty insurance is commonly sold under the premise that the warranty provider will offer any repairs or replacements in case of mechanical breakdown or failure. The common problem is that people cannot actually benefit from this coverage if they are buying a pre-owned vehicle. In this instance there will be far too many exclusions for the insurance to actually pay off.
How to spot junk insurance
The problem with junk insurance is that most people have been unaware that they were sold unnecessary insurance years ago. If you suspect that something similar could have happened to you. Make sure to look for any clues on your loan or credit card statements. You can request these statements from your local financial services provider and look through the list for any suspicious words. Some terms to keep an eye out for include: mortgage protection insurance, CCI, GAP, loan protection insurance, extended warranty insurance etc. If you run into any limitations make sure to contact professionals.
Getting an insurance is such a common and wide-spread practice nowadays that people often take it for granted and overlook important caveats in the process. This leads them to become victims of predatory sales tactics and junk insurance. In order to protect oneself against this extremely expensive scam you can learn more about the extent of the problem first. Distinguish between the different types of junk insurance such as: CCI, GAP or Extended Warranty insurance. Lastly, make sure to spot any important clues in your bank and loan statements before contacting professionals to help you get your refund.
