Why does insurance get a bad rap?

We all know someone who says insurance is a scam, you never use it, so why bother having it? Though I disagree with this statement, I can completely understand where these people are coming from. 

We spend thousands of dollars a year to cover our home, auto, toys, business, life, etc., only to get turned down on the claim. Really, why are so many losses turned down? I do have my theory. Read a little further, and I will explain. 

When you meet with an insurance agency, do you ask questions about coverage? Do you take the time to learn what the coverages are and how they affect you in the case of a loss? Do you explain to the agent the negative experiences that you have endured during the claims process? 

Here is the deal: agents know coverage, but they rarely know how that coverage will be used in a loss, as we are not claims adjusters. That being said, we do spend several years learning the coverages and asking questions just like the ones you are going to ask us as the client. We want to know the answers to the questions that will eventually be asked of us. 

So why are losses not being covered? Because questions are not being asked. Clients are not asking about additional coverages; they are not asking what the different options are available for covering the home. They are just saying, Give me the cheapest option. This is a case of getting what you pay for. Your claims are not going to be covered if you have the minimum state coverage on your auto or the minimum bank requirements on your home. 

Why? Because you have eliminated everything from your policy and left just the basics. This gives you no claims coverage.