Are You Making Any of These Common Insurance Mistakes?
We all make mistakes. It’s a natural occurrence as a human being. It’s how we learn. Once we understand why what we did was a mistake, we can make better decisions the next time around. Typically, we make mistakes when we don’t know any better. Knowledge is the key to avoiding mistakes.
How much do you know about insurance? Are you fully informed about the contents of your policy? The truth is, some of us are not. Some people simply haven’t learned the meaning of certain insurance terms, which makes it somewhat difficult to shop for the coverages you need. Unfortunately, though, when it comes to making mistakes with your insurance policy, the lessons come the hard way. You learn the hard way that you should have added that coverage, or asked for higher policy limits. The “hard way” includes putting your finances at risk. Insurance mistakes are mistakes that we want to avoid at all costs–literally.
Become aware of the following common insurance mistakes to avoid making these mistakes yourself.
#1 Buying the “cheapest policy” without understanding your coverages. Spending more on your insurance policy up front saves you money in the long term. A more extensive policy is usually going to be pricier, but worth it. Having proper coverages protects you from having to pay out of pocket if the claim exceeds your policy limits. Don’t make this mistake–instead, speak directly with an insurance professional who will help ensure you get all the coverages you need.
#2 Declining coverages that you may need in case of an accident. Make sure you fully understand what the coverage is and what will happen if you do not have it (in case of an accident) BEFORE you choose to decline that coverage. For example, if you get into an accident without collision coverage, the repairs for your car are not covered by insurance.
#3 Buying insurance online without any insurance knowledge. It is in your best interest to talk to an insurance agent about your specific needs, i.e., how valuable your car/house is, how valuable your belongings are, what kind of health insurance you have, etc. With an understanding of your personal life, an independent insurance agent can make sure you have the proper coverages to avoid putting any of your assets at risk. Though online insurance is convenient, it can be risky.
#4 Not exploring your options. Another reason that buying your insurance policy with an independent agent is so great is that they have access to multiple markets. However you are buying your insurance policy, be sure to shop around to get the best policy for the best rate.