insurance

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Shopping for insurance cover, be it home, car or even travel insurance, should be a fun experience. Unfortunately, many of us take the fun out of it by committing numerous insurance mistakes that can easily lead to one spending twice as much on their insurance cover. Therefore, it is very important to avoid insurance mistakes at all cost. With this in mind, this blog post will highlight 3 common insurance mistakes many people make when shopping for insurance cover and how to avoid them.

Paying Too Much Attention On Price

When choosing an insurance cover, going for one that is cheap is not always the best way to go. Having this mindset while shopping for insurance cover might make you overlook important information about a company or the insurance cover you are going for and as a result, you might end up paying the cost a few months down the road.

How To Avoid It: The solution here is simple, stop paying too much attention on price. Instead of price, you should find out what the insurance policy you are purchasing covers and whether the company you are purchasing the insurance cover from is reliable and financially stable. Their customer service also has to be good. If this information checks out and a company offers competitive prices then you have a green light.

Assuming It’s Expensive/Out Of Reach

Many people assume getting insurance cover is expensive (actually three times as much) or out of reach and as a result they don’t give it to much attention despite it’s importance or even worse they end up seeking out cheap insurance cover. This assumption is not right, insurance covers are not expensive and are not relatively cheap either, but if you play it right, for instance asking for some discounts on your cover, you will end up with the right cover for you at a reasonable cost.

How To Avoid It: The key here is to stop looking at insurance cover as something only for the rich or individuals who are well off because you can take various steps to get an insurance cover at a reasonable price. In addition, you can always seek financial help when buying an insurance cover so don’t let price determine the quality of the insurance cover you get.

Understand What Your Insurance Covers

Understanding what your insurance policy covers is something many people fail to do when purchasing an insurance cover. In most cases, as surprising as it might sound, many people tend to find out the areas their insurance policy covers when they have an accident. This as you can tell, is way too late and if your accident is not covered in your policy then you will have to deal with the issue yourself and this might end up costing you too much money for no good reason.

How To Avoid It: The best way to avoid this mistake is by knowing everything about an insurance cover before taking it up. One way you can go about this is by reading the insurance policy and always contacting your insurance agent if there is something you find unclear with the policy or if you simply need more information on your insurance policy.

By Arnold Obat