Nobody likes paying for insurance every month, whether it’s health, auto, life or another type of insurance. Because you realize that having insurance for these things is a necessity, you try to make the best choices regarding each type of insurance. How certain are you that you haven’t made any insurance mistakes?
Every day, millions of consumers make insurance mistakes that could cause them untold financial trouble. See if you’ve made one of these four common insurance mistakes.
1. Homeowners Insurance Mistakes
If you own or rent a home or apartment, you most likely have homeowner’s or renter’s insurance. You might think basic coverage is enough, but if you have items in your home that would be extremely costly to replace, such as jewelry, artwork, expensive furniture or antiques, they might not be covered. Often, you need to specifically list them and add them to your policy. You may pay a little more each month, but it’s worth if for your peace of mind.
2. Car Insurance Mistakes
When it comes to car insurance, most people don’t realize you can adjust your rate by selecting different types of coverage. For example, you might not want complete coverage if your car is old and not worth too much. Or you might want more liability coverage if you are often driving with children in the car. Choosing a higher deductible, getting a car alarm system and taking a defensive driving course can all lower rates.
3. Life Insurance Mistakes
One of the most common life insurance mistakes is simply waiting until you are older to get a policy. However, the longer you wait, the more costly your monthly premiums are apt to be.
Start shopping for life insurance policies when you are in your early 30s. You might discover that not only are premiums less expensive, but there are also options to fit different times of your life.
4. Health Insurance Mistakes
The most common health insurance mistake is simply choosing the wrong policy. Health insurance can be confusing, especially if you have a large variety of policies to choose from through the health insurance marketplace. To make the best, most informed decision, take the time to carefully compare the different policies available to you. Check deductibles, co-pays, prescriptions costs and what exactly is covered by each policy.
Hopefully, you haven’t already made these mistakes, and now, you’ll be sure not to make them in the future.