We all know insurance can be overwhelming and can leave us a little confused about whether or not you have the best insurance for yourself, your home and auto, or even your business. It is frustrating to hear that someone has experienced a significant financial loss because they did not have the correct insurance.
The following reasons are some of the most common mistakes that people make when getting insurance:
Get Quotes from Multiple Companies
Insurance companies base their premiums from statistical data that they collect to try to determine the likeness of a claim. The information that each insurance company uses to determine their rates can vary significantly. Your age, driving record, credit, where you live, and other details are all used to calculate the insurance premium. If you take the time to get quotes from multiple companies can save you a substantial amount of money. Independent insurance agents usually represent many companies, so you are able to get in touch with several companies, receiving many quotes.
Not Comparing Agents
The agent is the person who is on the frontline who works to find the best policy for you. It is important that you make sure that the agent is properly licensed to give you fair advice and also has a good reputation. This is key to having a good experience. You should speak to several agents to ensure that you feel comfortable with their experience level and the advice they are offering to you.
Not Understanding the Policy
All of the different coverage options can be confusing and overwhelming. It is a good idea to ask for examples and make sure that you understand the coverage options available. It is important to understand the plan you are choosing. Finding out what your coverage means after a claim can be an unfortunate experience. Having a solid understanding of your policy can help you make a better decision.
Not Buying Enough Insurance
Buying insurance is not anyone’s favorite thing to do. Who would be excited about spending money to cover something you hope doesn’t happen? Although having insurance can bring peace of mind to some, most people buy insurance just because they are required to do so. It is common for people to buy the minimum amount of insurance that they can; however, you should always buy the proper amount. Insurance is a financial safety net. You cannot predict the future but having the appropriate insurance can protect you from an unfortunate incident.
Not Updating Your Coverage
Our lives are constantly changing. Whether you are getting married, divorced, buying more property, your child is learning to drive, or having a child go to college, or any other life-altering change, you must let your insurance agent know. It should not be assumed that your current policy is fine without making changes that reflect the changes being made in your life.
Not Taking Advantage of Discounts
A mistake that people make when buying insurance is not taking advantage that is available to you. Companies have been known to offer good student discounts, driver’s training discounts, and even paid in full discounts. You may even discover that belonging to a certain association, working in a specific profession, or even driving a hybrid vehicle can qualify you for a discount.
While searching for insurance brokerage remember to do your research, do not go for a policy simply because it is cheap, make sure you cover all your bases and are not just obtaining the minimum.
To help with your insurance needs, find out more how You Matter Insurance & Financial Group can assist you.