Insurance used to be so easy. A person went to an insurance agent, explained what he wanted then signed papers stating he was covered. It’s a shame those days are gone but they died a quick death from the word more; more drivers are on the road than ever before, more homes are built to house those drivers and more health insurance companies struggle for their business. Insurance has become a gamble and there are four reasons why.
1. The days of driving a ’56 Chevy, living in a modest two-bedroom house and singing in the church choir on Sunday have given way to road rage, condos and singing in the car on the way to work. Sheer numbers have overwhelmed the insurance industry. Consideration number one is where you fit into a demographic. Do you drive a new car engineered for safety as opposed to a clunker you could afford? Does your home exist in a safe neighborhood, relatively free from crime or other disaster? Does your health insurance cover pre-existing conditions such as diabetes or chronic pulmonary disease? More means selectivity on the part of insurance coverage.
2. Everyone is jumping on the green bandwagon. Is your home solar powered? Do you drive an electric vehicle or a hybrid? Do you enjoy good health due to a good diet and healthy lifestyle? Consideration number two is how stable you are in your habits and ownership. If the company has to pay out for an electrical fire in the home, the car skidding into someone due to no anti-locking brake system, or some awful disease contracted through working in unsafe conditions, your rates go up.
3. Just like someone living below sea level won’t stand a prayer of getting flood insurance, so someone living in Tornado Alley will pay through the teeth to get homeowner’s insurance. On the other hand, in the early 2000s, Hurricane Elizabeth cut a swathe through the eastern states from North Carolina to New York that left homeowners dazed. Natural disasters can’t be predicted nor Acts of God, but consideration number three would have to be the area the insured-to-be lives in.
4. It’s not fair and everybody knows it, but the sad fact is that age happens. It also precludes certain types of insurance. Life insurance is increasingly harder to get the older people get. Homeowner’s insurance for first-time homeowners can be dicey if the homeowner is over 40, let’s say. Unfortunately, that’s when some people get to a place where they can afford to pay the premiums, so consideration number four is age. Being able to prove good health, a stable income and good habits will go far toward older people getting coverage.