You have most probably noticed that insurance firms like to pack as much small print into your policy as possible. Whether you are a little long-sighted or not, you must read every last clause, term and condition before coughing up the premium. Do not sign anything unless you have read it from cover to cover.
There is a statutory cooling off period in which you are allowed to cancel your insurance and not be penalised financially in any way. This is a very complicated area indeed and there are five laws that govern this. Amongst all of these laws comes the agreement that you have to be allowed time to cancel your policy. This is not the same and will be different for each policy. Even if you ask no other questions, find out how long your cooling off period lasts for before committing to a policy.
This period can be as long as 30 days but also as short as just 5 days. This explains why it is important to understand this before you sign the policy. 5 days is less than one week which may not give you enough time to cancel without penalty. This penalty can be severe or really quite light but you won’t get your money or deposit back after this time has elapsed. If you have paid 6 months as a deposit then you must be especially careful.
Every single aspect of your insurance will be governed by a clause or condition in the small print and you have to know every little detail inside-out. If you don’t then it makes it a lot easier for insurance firms to wriggle their way out of paying you. If you sign their conditions then you won’t have a leg to stand on and thus one shouldn’t sign until you are 100% sure.
The small print may look like a boring read but it’s an important one nonetheless. If you sign it then you have to abide by it so make sure you know what it is that you are committing yourself to. The statutory cooling off period is not as long as you might think and reading the policy is a must.
