Top 5 insurance mistakes to avoid
Not shopping around
When it comes to insurance, one of the biggest mistakes people make is not shopping around to learn more about the different products and cost structures available on the market. We normally chat to one insurance provider and if their quote seems decent, we take it. Exploring your options could save you tons of money in the long run, so be sure to chat to at least three to five different insurance providers.
Choosing the policy that’s the cheapest
Sadly, it’s true… Price isn’t the be-all and end-all when it comes to insurance. Au contraire, your main concern when shopping around for insurance should be getting the most value for your money. This might mean that you have to fork out a wee bit more to get all the benefits or coverage that is right for you.
Not reading (and re-reading) the Ts and Cs
Nobody cares about the nitty gritty details, right? But you should! The whole point of getting insurance is to cover yourself so you need to understand what you are being covered for. Find out under exactly which circumstances your insurance will pay out. Does your home insurance provider, for example, require that you have security cameras in your yard otherwise they won’t cover stolen goods? There’s nothing worse than thinking that you’re covered when you aren’t. Be sure to study your policy’s Ts and Cs so that you can stick to them at all times.
Buying unnecessary extras
It’s a trap many of us fall for. Your insurance advisor tries to “up sell” you and you bite hook, line and sinker. You take on extra benefits that you don’t really need, or worse, you sign up and pay extra to get a no-claim bonus at the end of a set amount of years. Why would you do that? Accidents happen and you could lose good money as a result of being forced to claim! Instead, put that extra bit of money into an investment or savings account where you are certain that it grows regardless of whether you have to claim from insurance. On the other hand, if it is a free value add, then by all means, take it.
Lying to your insurance provider
Insurance fraud is a big deal (and a crime, of course). While it might seem like a good idea that you lie about where you park your car or how often you use it for business, it sure will come back to haunt you in the event of an incident for which you have to claim. Uh huh, if your insurance provider even slightly suspects that you lied to them or left out relevant information during the inception of your policy, they may opt not to pay out your claim. What’s the point of having insurance if they will likely not pay out anyway?