Insurance companies limit their risk by specifying exclusions and (sub)limits. Looking for and understanding exclusions and sub-limits is especially important because they can be used to lower the premium of seemingly identical coverage from different companies.
Here’s an unsurprising fact: Very few people read the legalese terms of service contracts - less than one person in 1,000 (according to this Forbes articles). So what are people doing:
- Some blindly trust the fine-print based on their view on the overall trustworthiness of the insurer
- A common approach is to ask a friend who they buy insurance with, hoping they didn't use method 1
- Other people rely on online social networks e.g. BoughtByMany makes this approach easier by identifying groups of similar insurance buyers such as those with Crohn's disease (for travel insurance), or owners of French Bulldog (for pet insurance) etc.
- Or if you want an expert, you can always buy insurance through an insurance broker - they have a good knowledge of the differences in fine print and also how smooth the claim process is with different insurer. Of course you have to pay for this service either directly or implicitly through an commission.
- broad supplemental cover to fill those gaps in your health/life/property insurances,
- minimal fine-print (see our T&C's) without the legalese/medicalese,
- your friends, family and others concerned about your welfare, decide how much we pay you