When it comes to buying insurance, fear is an important motivator. We are right in our worries about protecting our assets such as homes and cars, and we purchase insurance to protect our financial integrity. Despite our best efforts, sometimes our insurance does not live up to our expectations. This isn’t always the fault of the insurance policy; it can sometimes be the result of human failure. When purchasing an insurance policy, many people only look at the cost of the coverage, and not the actual amount of coverage that is necessary to restore the assets to their pre-disaster conditions. Always shop for the lowest priced insurance policy, but make sure you first know exactly the coverage you need. Here are five common insurance mistakes to avoid at all costs:
*Trying to be your own insurance agent – Shopping for insurance is difficult, and it is best to seek advice from a professional and independent insurance agent. The Internet is a great tool, and you should use it to educate yourself, but in the end it is best to work with an independent agent who can offer many options from numerous carriers for your review and consideration. An agent will help you unravel the issues involved in purchasing the proper amount of insurance coverage at the most competitive price available. Ultimately it isn’t just about getting the cheapest insurance; it is getting the insurance coverage you need at the most affordable price.
*Understand what you are getting – Do you remember the saying “if it sounds too good to be true, it probably is?” When it comes to buying insurance, you often get what you pay for. A company that promises large discounts is most likely offering less coverage. Be sure that you are comparing offers from multiple insurance companies, and make sure you understand the discounts they are offering.
*Cutting it too close – In a tough economy, many people try to cut their living expenses to the bone. While it may be wise to cut out some of the “extras” we enjoy such as eating out and going to the movies, reducing the coverage of your insurance policy can be risky. If disaster strikes, you’ll be glad you didn’t cut back on insurance coverage too much, which can result in thousands of dollars of uncovered damages.
*Skipping your annual insurance reviews – How much has your life changed in one year? Five years? Ten years? If you’re like most people, the answer is a lot! For instance, has the value of your home gone up or down over the last few years? Have you purchased a new car or boat? Has a teenager just gotten their driver’s license? Did a child just graduate from college? These are just a few of the changes that can affect the amount and cost of you insurance policies. Just like your taxes, your insurance should be reviewed by an independent insurance agent at least once a year.
*Restricting your options – There are many insurance companies that advertise a “one size fits all” approach to your insurance. In some cases, these companies do not have your best interests at heart. It is best to consider multiple options, rather than limiting yourself to one choice. Many times placing all of your policies with one company will save you the most money on your insurance, but not always. There are times when placing your insurance policies with different insurance companies will get you the most insurance coverage for the lowest price. An independent insurance agent will have access to at least 50 insurance companies, insuring you are getting the best deal on your insurance.
Protect the loved ones in your life by learning more about insurance. Request a quote from a professional independent insurance agent like Journey Insurance Agency, and let us sift through the hundreds of insurance programs to find you the most competitive rates available. Let us do the paperwork and you can focus your precious time on something you enjoy.
Journey Insurance Agency * Irvine, California * 888.323.7480
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