Insurance Buying Mistakes

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Technically, insurances aren’€™t designed to be simple. More often, they could be confusing to the innocent buyer. Still, it doesn’€™t take an expert to acquire a decent deal. Just knowing the right things and avoiding these mistakes can help you land the best insurance deal out there.

Not reviewing your credit report

A simple rule of thumb in almost every financial undertaking in life is checking your credit score. Your credit pretty much determines everything, from loan applications to paying for insurance premiums. Without checking your credit score, you won’€™t have an idea about the deal you might be entitled to.

Not doing your homework

Hearing about those insurance terms and policies could be very overwhelming at first, which is why it is not advisable meeting with an agent empty- handed. Make sure you familiarize yourself with basic insurance terminologies so that you can understand every explanation and the agent will think twice before setting traps for you.

Buying too much or too little insurance

While the costs are one of your primary concerns, it might not be wise to opt for too little coverage just to get cheaper premiums. On the other hand, too much coverage can rip you off big time as well. Determining your needs, assessing the policy’€™s benefits to you, and calculating the long- term costs can help you avoid coverage mistakes.

Grabbing the first deal offered to you

It’€™s a common error committed by inexperienced buyers. There are many insurance companies out there willing to offer their most reasonable cost to have you as one of their clients. If you say yes to the first deal, you could miss out on cheaper offers from other companies. In addition, if the company sensed your lack of bargaining skills, they might not offer you the best deal you are entitled to, and might even add costly extras to your policy without you being aware of it.

Not reading the fine print

It’€™s not only with insurances, but reading the fine print is a must for just about every important decision or purchase you will make. You can’€™t just expect that every little detail in the policy will be explained to you in plain English. It is your responsibility to read, understand, and clarify everything written in the contract so that problems could be avoided should the time comes to make a claim.

Lying during the Application

Whether it’€™s an innocent mistake or you deliberately lied during application to get cheaper premiums, it could cost you consequences both financially and legally. Failing to reveal any relevant information to your insurance company can result to denied claims in the future, or worse, getting blacklisted from other companies as well.

Failing to ask Discounts

There are various discounts you could qualify for but won’€™t get that easily, unless you ask for them. Naturally, insurance companies won’€™t good- heartedly inform you if you’€™re eligible for a certain discount, such as making annual instead of monthly premium payments. Make sure you clarify this with every company you visit.

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