5 Basic Insurance Mistakes That Cost You Money

Insurance can seem like one of those things that you only need when something goes wrong. But if you don’t have the right insurance, it’s not just when something goes wrong that you will regret your decisions; it’s every single day of your life because of the cost that these mistakes will rack up over time. Here are five common insurance mistakes to avoid to save money and protect yourself from financial disaster.

1) Not carrying enough insurance


One of the most common and costly mistakes is not carrying enough insurance. This can leave you financially vulnerable if you’re in an accident or your property is damaged. Make sure you have enough coverage to protect yourself and your assets.

2) Not understanding your policy


One of the most common mistakes people make is not understanding their insurance policy. This can be incredibly costly, as you could be paying for coverage you don’t even need. Make sure to read through your policy carefully and ask your agent any questions you have.

3) Not paying attention to renewal notices


One of the most common insurance mistakes is not paying attention to renewal notices. Your policy is only as good as the last time you paid your premium, so if you let it lapse, you could be in for a nasty surprise when you try to make a claim.

4) Failing to maintain coverage


Failing to maintain continuous coverage is one of the most common and costly mistakes people make when it comes to their insurance. If you let your coverage lapse, not only will you have to pay more to reinstate it, but you may also be denied coverage altogether.

Plus, if you have to file a claim while your coverage lapses, your claim may be denied.

5) Forgetting about add-ons


Many people think that their insurance policy covers everything, but that’s often not the case. Make sure to ask your agent about add-ons, such as windstorms or flood insurance, which can help protect your home in the event of a natural disaster.