February 15, 2023
Whether it’s for your car, health, home, or another need, insurance is something you may be forced to have but not want to use. Every penny paid for it can seem like a waste until you finally need to use it. But that’s the thing. When you need it, you need it. Should the unexpected happen, you don’t want to find out you’ve saved a few dollars just to be on the hook for thousands.
So you don’t want to make a costly insurance error. Avoiding these five common insurance mistakes can help you make the right choice.
When choosing car insurance, it can be tempting to go with whichever company offers the lowest prices on policies. But lower-priced options might not offer the most expansive coverage. Plus, price doesn’t always determine the coverage amount — two companies may charge the same price for significantly different policies.
This is why it’s best to do your homework. Instead of choosing car insurance based solely on price, shop around to make sure you get the most bang for your buck.
There are multiple types of car insurance. And while basic liability will cover the cost of an accident, it won’t cover your medical bills or your auto repair like other, more comprehensive policies will. If you’re at fault for the accident, it will pay for the medical bills and auto repair for the other driver — plus any of their passengers — and their car, but you’ll have to pay your own expenses completely out of pocket.
These unexpected expenses can easily add up to thousands of dollars. A lot more than you’d pay for a more holistic car insurance policy. So, purchasing full coverage for your car can be a much better option to protect your pocketbook in the event of a car accident.
If you have a life insurance policy at work, you might not feel the need to get a private policy. But if your work policy is under six figures, it may be best to consider getting more life insurance.
A funeral can cost up to $12,000 on average. The average end-of-life care for older adults with cancer — a disease 1 in 4 people get in their lifetime — is nearly $34,000 in the year before death alone. These end of life costs, your loved one’s living costs, and other common costs (i.e., your child’s college tuition) can add up quickly, creating a financial burden you don’t want your loved ones to have to shoulder on their own.
There are multiple types of supplemental life insurance you can get outside of your work policy. Some, such as whole life insurance and universal life insurance, even come with a cash value component that earns interest or other investment gains and grows tax-deferred. So, if you want to protect your family financially, purchasing an affordable supplemental life insurance option can be a great strategic move. And a loving one.
Guess what? You’re never too young for life insurance. In fact, the earlier in life you get it, the better.
Buying life insurance at an early age allows you to not just be covered, but avoid paying higher premiums. The older you get, the higher your premiums will be, especially if you’re facing any of the many health issues that come with age — which could potentially disqualify you from many policies.
Word to the wise? Don’t delay. Sign up for life insurance as soon as you’re able to.
You shouldn’t wait until you own a house to insure your belongings. If you’re renting, it’s best practice to cover everything in your home with a renters insurance policy.
Many people fail to do this, often thinking that they’re covered by the landlord’s policy. But that’s not the case. Without renters insurance, your items will be completely lost if there’s a fire, flood, or theft.
With renter’s insurance, your items are covered — and not just when they’re at home. Some renter’s insurance policies will cover your items when they’re in transit. So, if you’re moving from one apartment to another, you may be able to recover items lost due to theft or a car accident. Plus, renter’s insurance can help you pay for more than your physical belongings when the unexpected happens. It helps cover minor injuries to others, legal costs after an accident, and even temporary housing should your home become uninhabitable. And it does this without breaking the bank.
Of all the insurance types out there, renters insurance tends to be one of the least costly. Depending on where you live, your monthly renters insurance bill may even cost less than lunch at your favorite fast-food spot. So don’t skimp on this financial protection option — protect your wallet by covering your home.
Your privacy is important to us. We will never sell your information and we promise not to spam you.
