When thinking about insurance, it’s key to realize that having insurance is very important. That said, you want to be correctly and appropriately insured as having too little or too much insurance might have a significant financial impact. Below we explore the main mistakes to avoid when taking up and insurance.
Deciding to not have a basic insurance
Trying to save money by not taking up any insurances is a mistake you do not want to make. There are a few basic insurances that one needs to have (and some of these are mandatory by law) and skipping them might lead to serious financial trouble. Among these are:
- Basic health insurance
- Car insurance
- Renter’s or Home owner’s insurance
Getting unsuitable insurance
It is easy to get lost in the myriad of insurances that are available nowadays. Make sure you understand what it is that you sign up for and that the policies you select are suitable to your needs.
Not shopping around for a new insurance policy
It is important to shop for a new policy every few years to make sure you get the best rates. Additionally, you should look at policies where you work or where you went to college as they might be more advantageous than others. It does not take a lot of time to check out new options every now and again and will help you get the best rates.
Another mistake that people often make is over insuring themselves. It might be difficult to know how much insurance you really need, so talking to an independent insurance consultant is best. Get professional advice and don’t fall into the trap of having to pay for too much insurance.
You can link this one to the one above but is the opposite. Not having enough insurance can be very costly should you have an accident or have a major health issue.
All in all, the best advice we can give in case you are not sure how much insurance you need as well as the type of insurance is to get an independent advisor to consult you on this. The fee to pay might seem steep but it will be worth it in the long run as you will get the right insurance that will protect all your assets should accidents happen and will not be overpaying for too much insurance.
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