Understanding Basic Insurance
It always amazes me when someone thinks that just because they pay a monthly insurance premium, they should be able to recover the insured item without having to pay a deductible.
I overheard a woman in a mobile phone store, who wanted to get a new phone because hers broke. She was completely shocked to hear that even after she paid $12 a month for 18 months, that she couldn’t get a new phone without having to pay a $175 deductible.
You don’t like it? Its not fair? It doesn’t matter what she likes or thinks is fair. No amount of explaining would have satisfied her. The clerk could have given her a class in how insurance companies work, their profit and loss and business structure, and she still wouldn’t have thought it was fair.
Just because someone thinks insurance should work a certain way, doesn’t mean that it does or will.
Imagine what she would think about title insurance. Paying money just incase someone, some day, might come back and say that they have an ownership interest in a home; piece of real estate. And, imagine if there was fraud involved in the mortgage transaction.
Hopefully, you won’t be as much of an idiot as the customer if you have a basic understanding of how insurance works.