8 Common Insurance Mistakes – And How to Avoid ThemDecember 9th, 2021 by rrteam
The world of insurance can seem overwhelming – but it doesn’t have to be. Don’t feel bad if you are falling into the common pitfalls listed in this blog. Many people are in the same boat!
Here at Rehm Insurance, we are here to help. First of all, forgive yourself. You aren’t the first person to make these errors, and you won’t be the last. Second, the good news is that you can do something about it.
Here are some of the most common errors we see in the world of insurance:
1. Opting Out of Basic Insurance
The budget can be tight, and you are always looking for ways to cut back. Opting out of your basic insurance needs should NOT be one of those cost-cutting measures.
There are some “bare necessities” you should never consider dropping, such as basic health insurance. You never know when you may need this life-saving coverage.
Additionally, it is illegal to drive without basic coverage. You also will want your belongings covered, whether you own or rent your home.
Having these basics covered isn’t really an option. You don’t want to consider the alternatives. If funds are tight now, and affording insurance is difficult, just imagine the consequences if you don’t have coverage at all.
Lacking basic insurance could mean financial disaster in the long run. While footing the bill today seems costly, the price for not doing so is more than you can handle.
2. Under Insuring Yourself
The flipside of the coin is also true. For every person I know that is overinsured, there is certainly the counterpart: the underinsured. Be sure you know precisely what your needs actually are. And, when you aren’t sure, seek the advice of a trusted professional.
Opting for the bare minimum can leave you high and dry in the event of unforeseen accidents. There are legal levels of insurance required in many cases, but that doesn’t mean that’s the best option for you.
Make smart choices to be sure you don’t have too little (or too much) insurance.
3. Not Asking for Discounts
This may sound like a simple one, but you’d be surprised how many clients aren’t asking for the discounts they deserve.
Many insurance agents can offer discounts when you “bundle” packages, like when you use the same company for home and auto insurance. Additionally, some insurance companies will offer age discounts, safe driver savings, and ways to save money via classes you can take.
Ask your company what you can do to save. Often, a simple phone call can save you money each month. Sometimes it is truly just as simple as asking.
4. Staying “Loyal” to a Company
Do you have the same insurance company as your parents? Have you ever truly shopped around for a new one?
I have seen many clients remain with a company because, quite frankly, it is simple to do. Change can be hard, and no one enjoys the process of shopping for insurance.
There is seldom a reward, however, for staying in one place. Ask your company if there is a loyalty discount. If not, consider shopping around. Sticking with a company just because it is easy is not going to save you money in the long run.
5. Shopping By Price Alone
There are many factors to consider when purchasing insurance of any kind. Price is usually at the forefront of most shoppers’ minds. But, it is not the only thing.
While you want to budget wisely and get the best bang for your buck, you also need to consider customer service, track records, and reputations.
Check reviews of the company you are considering, and see what its own customers have to say. You can also research using neutral parties such as the Better Business Bureau or Nerd Wallet for fair information.
6. Providing the Wrong Information
Before filing with your insurance company, you are going to have to do some homework. You need to gather facts, such as your home’s value, the year it was built, the size of the property, and any historic issues it may have had (if you’re shopping for home insurance.)
Having the wrong information on file can truly cost you big time. Additionally, you will want to keep this information up-to-date with your insurance company. Adding expensive items, upgrading facilities, or adding on to the home can really increase your home/property value. Be sure your files are updated and include all that you own.
7. Not Reviewing Your Policies
Just like you should add to your files when you make large additions to your home or belongings, you should also take some time to refresh your files on a regular basis.
Doing so will give you the opportunity to check for any errors or omissions. You will also have a built-in chance to add discounts or check for new rates or savings you may be missing out on.
Take the time to regularly check in on your policies. If you aren’t getting all that you want from your current agency, it may also be the time to shop around.
8. Trying to Navigate Insurance Alone
In the end, this big world of insurance doesn’t have to be overwhelming. You don’t have to go into it all alone. There is a great resource here in your own backyard.
Seeking the help of a professional is a wise choice, especially if you are unsure of any part of your coverage needs. An agent can walk you through many choices, offer different rates, and clue you in on discounts you are eligible for along the way.
Get in touch with a member of my team today, for all the trusted advice you’re seeking! Let’s sort out any mistakes you might have inadvertently been making.
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