Insurance: Make Sure You Are Avoiding The Common Mistakes

Regardless of your profession, you will always need insurance because insurance makes sense. Why would you not protect yourself personally or your business against external threats that could destroy your life? It is a simple choice to make and one that you have to make. But, that doesn’t mean it is an easy choice to make. Choosing correctly is just as important as making the decision to buy insurance as the wrong policy won’t cover your needs. You would be amazed how many people make a mistake when insurance is involved.

You cannot afford to make those same mistakes as everyone else, so here are the ones you should be aware of making.

Setting Low Deductibles

Low deductibles sound good, right? It is a cheaper option on the face of it, but when you delve deeper, it costs you more. You end up paying more on premiums than you can claim back should there be an accident or reason to claim. Low deductibles are mainly associated with auto and home insurance. So, if your car or home is damaged, you might not receive the money you need to make the repairs. By increasing your deductibles, you could save yourself a fortune in premiums.

Not Asking For Discounts

As the old saying goes, ‘if you don’t ask, you will never receive’. Insurance companies are not the easiest people to deal with because there are a lot of loopholes and political maneuvering. As a result, people just assume that they won’t be open to offering discounts. Still, they are like any other company and need your trade to beat off the competition. Plenty of people are paying far too much for their policies, and there is nothing wrong with playing the field and looking for a discount.

Staying Loyal

There is a lot to be said about product loyalty, as long as you are getting something from the relationship. For the most part, people like to be loyal because they know the quality is high, and the price is affordable, so why switch? There are no arguments with that scenario, but when the scenario changes you should, too. If another company has a better, cheaper policy, make the switch to save yourself a lot of time and money. Just know that your current insurance company will drop you as soon as you become too much of a risk.

Ignoring The Signs

If they have a bad record with their customers, stay well away from that particular insurance company. You are dealing with the most important parts of your life, so you cannot afford to play around and takes risks. If you get the feeling that they won’t pay out the first chance they get, they are not the company for you.

To make ends meet, businesses will often take risks, especially if they are new to the industry. Cutting back costs is going to be a big part of your business, but it is the biggest mistake you can make with insurance.