Insurance is a complicated matter. People who do not work in the insurance industry may struggle to understand many of the complexities. This can cause them to make mistakes when buying insurance.
Do you want to avoid common insurance mistakes anybody can make? Follow these tips.
Auto Insurance Mistakes
One of the biggest auto insurance mistakes you can make is getting into legal trouble behind the wheel. For example, you might have a DUI or have been caught driving without a license. In order to get your license back, you would need to file an SR22 form demonstrating that you have an adequate insurance policy.
Another significant mistake people make when purchasing auto insurance is selecting only the legal minimum requirement of liability coverage. You may be sued for anything extra that does not fall under your current liability coverage. If you absolutely need to save money here, you might consider speaking with an insurance agent.
Lying to your auto insurance company is another big mistake. Do not base a quote or claim on a lie, as this could cause you not to be covered in the event that you do get into an accident. In fact, the company could even cancel your policy. This will make you look like a bad customer to other insurance companies in the future.
People also often forget to update their auto policy when they have a new household member or when they get married. You may be able to lower your insurance rate when you get married, so you don’t want to forget to update your insurance policy at this time.
Home Insurance Mistakes
Failing to read your home insurance contract to determine what types of disasters your plan covers is a big mistake. Do you know if you are covered for a flood? What about a landslide or fire? If you live in an area prone to these natural disasters, you need to pay close attention to your insurance coverage.
Another mistake people make is not knowing how much it would cost to rebuild their home. While you can easily look up the value of your home on the real estate market, you might not know how much it would cost to build your home again after a disaster.
Renters Insurance Mistakes
Not having renters insurance is the biggest mistake a renter can make. These policies cover not only your possessions, including expensive electronics, but also potential living expenses if you encounter a disaster like a fire or hurricane. This form of insurance also covers liability protection if somebody is injured in your house.
When you move, ensure that you report the event. Depending on local crime rates, your insurance could actually go down substantially. You also need to take photos of your belongings before you can file a claim. Ensure that you keep these reports updated to recoup the funds for anything stolen or damaged in an incident.
Save Yourself From Easy Mistakes
The biggest mistake you can make is not having insurance at all. Insurance costs money, but lacking insurance is even more costly. If somebody is hurt in your home or you are in a car accident, you will lose a lot of money.
You do not have to fall prey to insurance mistakes everybody else makes. For you, the process of insuring yourself could be as easy as speaking with a professional who offers an understanding of everything from SR22 to renters insurance.
Rowell Insurance Agency can help you through an insurance debacle. Not sure what to do? Call today to set up an appointment with a professional who understands the common mistakes and how you can avoid making them yourself.