Whether you’re taking out a home insurance policy or car coverage for your family’s vehicles, insurance is a layer of protection that can literally safeguard your future. If something happens down the road, it’s nice to know that you’re getting help from a reputable provider who is there to assist you throughout the process. Unfortunately, buying insurance can be confusing and can leave you wondering if you’ve made a mistake.
Common Mistakes Made When Buying Insurance
Below is a list of the four most common mistakes consumers make when shopping for and buying insurance.
Not Comparing Companies and Agents
The worst thing that you can do is take out a policy with the first company you find. Not only is this problematic because you’re not guaranteed that you’re choosing a reliable provider, but you might not be getting the best price available. It is all too easy to overpay for insurance coverage, so it’s vital that you do a little comparison shopping to ensure that you’re getting a good price and are choosing a company with a great reputation. Try to avoid agents who are overly pushy, but also look for someone who isn’t going to ignore you either.
Not Fully Understanding The Policy
Your insurance policy has a lot of fine print, coverage options and add-ons. It’s important to thoroughly look over your policy so that you fully understand it before you pay your first month’s premium. This gives you the chance to know what something on your policy means before you actually have to make use of the coverage. For instance, if you don’t know what under-insured motorist coverage means until after you’ve been in a collision, you might be left paying out-of-pocket for something you thought was covered. It is your agent’s job to explain this coverage to you.
Taking Out More Coverage Than You Need, Or Not Enough Coverage
Companies tend to add coverage to policies that the average consumer may not want or need. For example, your car insurance might have roadside assistance on the policy that you know you’re never going to use, but you’ll be paying for it every single month if you don’t take it off your policy. Likewise, you might need additional coverage that you don’t have and you’ll be left with a problematic situation if you need to make use of the insurance, only to find out that you’re not covered for the scenario in question.
Not Benefiting from Discounts
Most insurance companies offer customer discounts when you’re bundling policies. One example of this would be a company offering home and vehicle insurance, and they’ll offer a discount to consumers who bundle the two together on the same account. You can save some serious cash when making use of these discounts, and you’ll wind up paying more for your policies if you don’t even know they’re available.