Insurance is one of those essential things you need to have, yet most of us spend little time thinking about it. While it is important to make sure you are covered, having the wrong type of insurance or inadequate coverage is as detrimental as not having any insurance at all. Here are some of the common insurance mistakes to watch out for when shopping for an insurance plan.
Insuring at the Bare Minimum
While it is good to be thrifty, you should avoid the temptation to go for the bare minimum when shopping for an insurance plan just because you want to save money. The incremental cost between paying the bare minimum and paying for the right amount of insurance coverage is usually minimal and definitely not worth the risk.
Getting the Wrong Insurance
Does your homeowner insurance policy cover flood damage? Do you know that most collision coverage doesn’t cover the stolen car? Insurance can be complicated, but it is wise to verify your insurance policy to make sure you have the right coverage.
Staying Too Loyal to Your Insurer
While your insurance company may have the best rate for you during your initial enrollment, they may no longer offer the best deal. Whenever you experience any major change or after the expiration of your insurance plan, you should get several quotes from different insurance companies to get the best deals. You may also want to shop for a good rate whenever you are hit with a rate hike.