How to cope if you owe an insurer money
Unexpectedly large insurance bills can create quite a financial strain. If you’ve lost a stream of income, are suffering from an illness or have unexpectedly large bills you may have difficulty meeting your insurer’s financial obligations.
We’re going to look at how you can cope if you owe an insurer money. By tackling the issue head on in a proactive manner, you can get back in the black as soon as possible.
Owing money as a direct customer
This sometimes happens when people have to pay for a policy and for whatever reason can’t meet a payment. If you ever find yourself in a situation like this, it’s recommended you contact your insurer as soon as possible and discuss alternate payment options. If you fail to do so, you might find your insurer will cancel your policy, which can leave you exposed.
Owing money to a third party
You may also find yourself in a situation where you have a debt to an insurer you are not a customer of. Probably the most common example of this would be if you were the cause of a car accident and didn’t have a policy. In this instance, the insurer of the other vehicle may seek payment for the damage caused. If you find yourself unable to meet financial obligations, it’s essential you talk to the insurer about options that may include reducing the amount of each payment or postponing the payment until you’re in a better financial position.
What else can I do?
Even if you’ve tried the measures above, you may find yourself unable to meet your financial obligations. In this instance, online insurance guide Understand Insurance recommends you contact a financial counsellor. Understand Insurance writes, “A financial counsellor can help you work out your options. When you call the national financial counselling hotline on1800 007 007, you will be automatically put through to the free financial counselling service in your state.
Were you aware of the options if you faced financial hardship?
If you’re comfortable, let us know in the comments.
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