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What should be considered when making an insurance decision?

What should be considered when making an insurance decision?

If you want to obtain adequate insurance against certain risks, you must consider a number of factors as described below. First of all, try to answer the following questions:

to. What do you want to make sure of?

YES. How much do you expect to receive in the event of an insurance accident? How much are you willing to pay the insurance company on insurance premiums?

C. How long do you want to be insured and pay the insurance premiums?

The next step is to find an insurance product that meets your needs (this is a more complex task). How to proceed?

to. Are you convinced to buy insurance?

YES. Do you know how to organize insurance?

C. Did you know that the insurance company must provide you with an information sheet before entering into an insurance contract?

You should have a clear idea of ​​what exactly to expect from insurance and what you want to insure. If you are on vacation and plan to get travel insurance, the appropriate type of insurance will depend on the type of vacation you plan. If you are on foot in Slovakia, you will need insurance to cover the costs of the mountain rescue service, which you had to pay in an emergency. Since local health services are covered by mandatory public health insurance, you will not need any separate insurance for the risks that can make you sick on your vacation. If you travel abroad, you will need travel insurance that also covers the costs of medical care, since as a foreigner you will have to pay for this care. However, if you have a European health insurance card, you are also eligible to receive medical care in other European countries based on compulsory health insurance. You are entitled to the same general medical care as the citizens of the country you are visiting. This means that any free health service for locals will also be free. For additional services, you will have to pay like the locals. If you travel, you may also need luggage insurance in case your luggage is stolen and you need to buy new things during your vacation. If you are traveling abroad by car, your insurance package should include accident insurance in case you need to move your car to a repair shop, or need overnight accommodation, etc.

For example, if you buy a cheap car, you are likely to only take compulsory automobile liability insurance (MTPL) to reduce your insurance costs. This insurance will cover any damage that may be caused to another person in a traffic accident, but will not cover damage to your car. If you buy an expensive new car, you may be willing to pay more for insurance and buy MTPL and Universal Car Insurance (CASCO), which will cover any damage to your vehicle. You should think about whether you need CASCO insurance only for damages to your car in a traffic accident or if you also want to obtain insurance for the condition of your stolen or vandal-damaged vehicle. It is also important if you want insurance coverage for total damages (the premium will be higher) or only part of the damage (the premium will be less).

An insurance contract can be concluded for any period and canceled if it is no longer necessary. However, in certain cases it is very important to know how long you want to pay the insurance. This mainly applies to life insurance, which can be taken out for up to 25 years. After a certain age, the insurance company may refuse to provide you with insurance, because you are a high-risk customer. If you can answer all of these questions honestly, you can get an idea of ​​what you need.

Make sure the actual terms and conditions of the insurance are clear to you. The offers of insurance companies vary, although at first glance they seem the same. Therefore, you should carefully compare the offers of different insurance companies before choosing. If you don't pay enough attention to find the best deal, you can easily choose a bad option. Before making a decision, carefully read the insurance contract, especially the insurance terms and conditions. It should focus primarily on provisions related to the insurance agreement, the definition of an insurance event, periods of protection and grace (during which the insurance terms and conditions do not apply), and insurance exemptions. If you do not read these terms carefully and do not understand them, it may happen that when an insurance event occurs, it will depend on the insurance company paying you the amount of the benefit / claim agreed in the contract, but the insurance company will pay you less or nothing.

What do you do when the insurance company refuses to pay? If you have properly reported an insurance event and have fully complied with your obligations, but the insurance company refuses to pay you the agreed amount, pays you less, or does not respond to your request for insurance benefits / claims payments, defend your rights.

Insurance can be arranged in any of the following ways:

Visit the branch of your chosen insurance company, tell them what type of insurance you need, specify their requirements and you will be offered an insurance product;
Find a suitable insurance product on the insurance company's website and enter an insurance contract online or by phone;
You are contacted by an insurance company employee or financial agent who provides you with an insurance product on behalf of the insurance company.

It is very important that you do not allow your persuasion to sign an insurance contract that is not clear to you in all respects, or that you have not examined in detail. Unless you're absolutely sure, don't sign a contract without reading it. Do not sign a contract on your first visit to an insurance company branch or when an agent calls you the first time. Do not sign a contract with the first insurance company you visit. Take your time and visit more insurance companies, collect all the information you need, compare offers and select the company that best suits your needs.

We recommend that you continue as follows:

Know what type of insurance you need (your idea and expectations);
Ask for a detailed explanation of everything you don't understand.
Request a copy of the insurance contract, insurance terms and conditions, and related documents;
Take the time to think about the insurance product offered, check the contract and compare it with other offers from insurance companies;
Sign the contract only when you are absolutely sure you have found the right product.

What kind of documents should you receive from the insurance company?

As a general rule, you should receive a copy of all the documents you signed. Make sure that the documents you receive from the insurance company are properly signed by the insurance company. You should only sign a document after reading it carefully.

Please note that the insurance contract to be signed is not the only document containing the terms and conditions of the insurance. There are other documents related to you, for example, general insurance terms and conditions, special insurance terms and conditions, list of rates and costs, evaluation tables, questionnaires, etc.

The insurance contract includes a list of these documents, generally at the end of the contract under "final rulings" or elsewhere in the contract. Look in the contract for a list of documents indicating the contract. Request these documents (unless you have received them from the insurance company) and read them before signing the contract. Otherwise, you will not know for sure what you buy from the insurance company.

Before deciding to sign an insurance contract, the insurance company must provide you with a copy of the information sheet called "Important Terms and Conditions for Insurance Contracts". This document must be submitted long before the contract is concluded. If you do not receive it automatically, you must request it. The document contains vital insurance information that will help you make the right decision. You can also download this document from the insurance company's website or obtain a copy from one of its branches. Take the time to read it carefully, preferably at home.