The danger of saying too much

"Facts do not cease to exist because they are ignored." -Aldous Huxley

The ending of the article discussed yesterday, 5 things never to tell your insurer, is so good that I wanted to give it a day of its own.

Here are things NOT to do after a car accident.

* Do not give a recorded statement to the other driver's insurance company. It will be used against you later on. Insurance companies must ask you for your permission in order to record an interview. Talk to your own insurer first.

* Do not make friendly conversation with adjusters. Stick to business and only tell them the "who," "what," "when" and "where." Don't tell them the how – that is just your opinion.

* Do not give out any information about your family. Do not give out the names of your doctors.

* Do not sign a medical release. Federal law protects your medical records. The insurance companies may use your release to dig through your medical history looking for a cause like dizziness.

Bottom Line

As children we are taught to be nice. To be helpful and friendly. But it can be a mistake to treat an insurance agent or any official as "a friend". I was very impressed with my wife's estate lawyer when introduced. We had a long friendly chat. Imagine my shock at learning later that our "chat" was being charged at lawyer hourly rates!

If a profressional (like a medical insurer) is super-friendly and starts asking personal questions, stop and ask yourself, "why?" Is this person actually trying to help up or are they hoping you'll let something slip that can be used against you?

When buying a house most people assume that the real estate agent is on their side. Often they are not. Some get a commission on the price of the house sold so it's in their interest for you to spend as much as you can. Others take a flat fee for their services and will put your interests first. Find out in advance whom the agent is working for - you or the home seller.

I learned this the hard way about Human Resources. I thought they existed to help employees. But they work for the company first. I once reported a concern only to have the HR person laugh at me and then blab about the absurdity of my concern to higher management.