Common Insurance Mistakes

Most people have insurance in one form or another these days. We have no choice in the matter really. The fact is that anything can happen at any time and to mitigate that risk, we need to make sure that we are adequately covered. But how do you know you have the correct amount and kind of cover? There are quite a few guidelines that one should follow when considering insurance, but in this article I would like to point out a few very common mistakes people make when choosing their insurance policy.

Too lazy to shop around

Unfortunately this is often the most common mistake people make. The excuses that you may not have enough time to properly compare quotes is really ludicrous considering all the companies out there that will compare quotes on your behalf, only requiring that you fill in a single form with your details. If you aren’t willing to shop around for the best product to suit your needs and your pocket, you have no-one to blame but yourself.

Only comparing monthly premiums

For many people the monthly premium is really the bottom line, but this way of thinking could land you in hot water. Not only is that only a portion of what you need to consider, not looking at other factors such as excesses could really hurt you financially in the event of some disaster. In addition, you also need to consider the company’s track record. Make sure that there are not any major complaints on web forums about the amount of time taken to pay out or declined claims.

Fine print

Who enjoys reading fine print? I certainly don’t! Unfortunately, if we want to be sure that we are adequately covered and know exactly what to expect in the event of a claim, we need to be familiar with the terms and conditions of our insurance policy. Most countries have laws that state that an insurance broker must explain the policy to you in full when you are purchasing it. That person also needs to answer any questions you have satisfactorily.

Buying too many policies

Telemarketers call us very frequently, often with a line to the effect of “You have been specially selected…”This obvious marketing ploy will only take your money and dump it into unnecessary funeral plans, hospital plans, life policies etc. If you already have a policy in place, that should be good enough. If it is not, cancel it and get one that will be sufficient.

These few simple pointers will help ensure that you don’t pay too much for your cover and ensure that you are adequately covered in the event of a tragic event. Regardless of who you insure with, make sure that you follow these simple common sense principles before you sign your name to a contract.