For beginners especially, insurance mistakes are a common occurrence that could have been avoided had the buyer been properly educated first. Although one of the costliest mistakes one can make is by failing to invest in insurance all together, there are a few important insurance mistakes to avoid when buying for the first time or renewing.
Mistake #1: Not Getting Enough Insurance
The bare minimum coverage plans may have an appealing price tag, but the price tag of the damage the plan doesn't cover can be a bit less appealing. The truth is, no one expects an accident to occur to their home, car or other valuable item, so it's difficult to prepare for these situations. Try to be as cautious and practical as possible when it comes to your own insurance plan.
Mistake #2: Getting Too Much Insurance
Believe it or not, you actually can have too much insurance coverage for your needs. For example, you shouldn't have snow insurance protection for your home if your live in Florida. Find the coverage plan that fits your unique needs, according to your situation. Before investing in auto insurance, determine the resale value of your car based on its make, model and condition in addition to your ability to buy a new car in the event of an accident. If you're in good shape, you may just need a plan that covers liability.
Mistake #3: Failing to Compare Quotes
It may seem time consuming and tedious at first, but one of the costliest mistakes you can make is going with the first agency you see instead of shopping around. The Internet makes shopping around easier than ever, so there is no excuse why you shouldn't do your research and get quotes for a variety of insurance companies before settling on the best value for your needs.
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