Choosing insurance policies is difficult and stressful, there’s no getting around it. With all kinds of companies offering all kinds of policies: “bundled,” “floaters,” “umbrella,” it’s hard to even make heads or tails of anything. While you might want to just give up and go with whatever the first company shows you, you’ll be doing yourself a major disservice. By simply avoiding the following 10 most common insurance mistakes, you can save yourself a lot of worry, and money.
Deductible is too low
A lot of people go for a lower deductible and a higher premium, assuming that in the event of an injury or accident they won’t have to pay as much to get full coverage. While this is a nice thought, if you are relatively healthy and you’re a safe driver it makes more sense to raise your deductible for a lower premium on your policies. You’ll save thousands on your premiums over the years, compared to the $500 you spend out of pocket for your deductible.
Failing to read the fine print
If you don’t read your policies all the way through, you could be missing valuable information. Did you know that floods aren’t covered under your homeowner’s policy? Additionally, if you have questions about your policies, you need to ask. If you don’t understand something, it’s likely to cost you more money in the long run if you don’t ask for clarification now.
Not shopping around
You really shouldn’t settle for the first price you find. There are tons and tons of insurance companies out there, and they all have different prices. In some cases, it makes sense to bundle policies, while in others it’s good to purchase different policies separately. But you won’t know what’s out there until you look.
Getting too much insurance
Some people end up getting too much insurance. It’s important to know that there is such a thing. At some point, you end up paying way more for your insurance than you will actually need in a lifetime. Sure, there are benefits to a premium insurance policy, but they come at a cost.
Assuming one size fits all
Just because your relative or coworker got one plan, doesn’t mean it’s right for you. Same goes for companies. There is no one-plan-covers-everything option, so you shouldn’t look for one. You’ll just end up paying more money for coverage that doesn’t fit you. Know what you need, from health coverage to car insurance, and choose plans that best fit those needs.
Skipping coverage because you’re healthy
This applies to both health and life insurance policies. Insurance companies hear daily that their client “doesn’t need” these policies because they’re young and healthy. While that may be true, you never know when you could get hit by a car, or when your luck will run out. It’s much easier to find health and life insurance policies with great coverage when you are healthy, as opposed to when you’ve developed health conditions.
Buying the absolute minimum
While this typically happens with auto insurance, we also see it with health insurance. Just like you can buy too much insurance, you can also buy too little. There’s no point in paying for an insurance policy that isn’t going to help you out in the event of a disaster. It’s much better to shop around and look for something that gives you the coverage you need for a price you can afford, than to just settle for the minimum.
Not considering add-ons
In line with the previous tip, don’t just disregard add-ons or floater policies because they cost more. In some cases, you might just need them. Own a super expensive work computer? Or maybe you inherited some precious jewelry from your grandmother. Either way, if their costs exceed the coverage for your homeowner’s policy, it might be in your best interest to take out an add-on to cover them. Otherwise, if something happens to them, it’s possible you won’t be compensated.
Ignoring discounts
The fact is, if you don’t ask about them, you probably won’t get them. Discounts are everywhere, for all kinds of insurance policies. There are breaks for great drivers, and some employers offer discounts for employees enrolled in a wellness program. Also, anytime you have a major life event, like you get married or move to have a shorter commute, you should notify your insurance agent. Any of these could get you a better price on your insurance policy.
Not considering the insurance company’s claims history
Finally, wherever you decide to finally purchase your policies from, make sure you’ve fully vetted the company. It’s really important that you know how a claim is filed, what happens after a claim, how long it will take to get a claim, and how your insurer will react if you file multiple claims. Some insurers can raise the price of your policy, depending on what you claim. You need to know this going in, and you need to know that they’re a trusted company who will settle your claim fairly, before you purchase a policy from them.
If you’re concerned that you’ve made any of these mistakes, don’t worry! You can always switch policies, and there’s always an opportunity to shop around for better prices. At Doyle & Ogden, we partner with more than 10 insurance companies, which means our insurance agents can shop around for you, to find you better coverage, for the best price. If it’s time to look for a new policy, or if you have questions about your existing policy, call the experts at Doyle & Ogden at 616-949-9000, or request a free quote online today!
