Insurance plays an incredibly important role in the life of every human being. Whenever we experience some misfortune or accident, the insurance helps us to recover, bounce back and get back on our feet. If we want to engage in some business enterprise, the insurance helps us to start this venture with full confidence knowing we will be able to come on top of any situation. Still, insurance is only useful when it’s used deliberately and to address the problems we have a chance of experiencing. Selling policies that hold no real value for the buyer is therefore not only considered unethical but also against the law. Let’s see then try to learn more about this issue and see if it can be turned to your advantage.
What is junk insurance?
The practices we have described above are usually under one umbrella term which is ‘junk insurance.’ Even though this description covers a broad set of different policies and insurance packages they all have one thing in common – they are added to the contract without the explicit agreement from the buyer and are stipulated in such a way the insurance holder has no chance of claiming the insurance. Since they are practically useless they can be sold only by using misleading, deceptive, and unethical practices. That being said, if you have any suspicion you have been sold such a policy, here are a couple of things that should help you understand the situation a bit better:
- Junk insurance is, in most cases, sold in the form of consumer credit insurance, guaranteed asset protection, mechanical failure insurance, extended warranty, tire and rim insurance, and loan protection insurance. If you have recently purchased any of these policies be sure to go through the agreement or get in touch with a legal representative.
- If you have been subjected to some malpractice or sold any of these policies, you have a legal basis for asking the compensation. So, if you are wondering can I get my junk insurance refund the answer is yes. But, due to the legal complexity of such cases, it is advisable to ask for professional help from a third party.
- Junk insurance requires thorough investigation and these issues are usually dealt with in the form of class-action lawsuits where legal representatives hold legal proceedings on behalf of a wider group of people. Such cases have a much higher chance of a positive outcome.
How filing for a junk insurance refund can benefit your personal finances
Now that we’ve covered these important considerations let us see why filing for a junk insurance refund is actually worth your time and effort. Well, let us start by saying that junk insurance creates the so-called ‘phantom expenses’ which make effective budgeting virtually impossible. Getting these funds under your control will give you much more room when handling the budgeting challenges in the future.
Furthermore, the savings you are going to make don’t need to sit idly. You can put this money in your savings account, or even better invest in some venture that will generate long-term revenue. Keeping in mind the overall theme of this article, the money spent on junk insurance or reclaimed as a part of the legal action can be used for purchasing some policy that actually holds some value for you. Last but not least, we would like to point out that filing a lawsuit and bringing the scams related to junk insurance to the public makes a significant stepping stone in the struggle to once and for all move the unethical practice of selling junk insurance off the table.
We hope these few considerations give you a general idea about what junk insurance actually is, and how recognizing these scams and filing for a refund can improve your personal finances. Even though insurance products practically keep our society going, we should do our best to avoid being gullible and paying for the things that have no real value in our lives. Not only are we running a danger of ruining our personal finances but also supporting the system that is essentially rigged. The time has come to draw a line and take a stance. You are called to join the struggle.