Insurance isn’t exactly the most fun topic in the world. But there are costly consequences if you don’t give insurance the attention it deserves. You can save money and manage your insurance effortlessly so that you’re protecting the things that are important to you —without spending tons of time and money. Here are some of the top insurance mistakes you need to avoid:
1. Not shopping around for insurance quotes
Comparison shopping is incredibly common when it comes to everyday household items, yet few Americans shop around for their insurance policies. We recommend getting at least three insurance quotes once a year and also whenever you experience a major life event, such as getting married or having a baby. Shopping around is the easiest way to ensure you’re not leaving money on the table every month.
2. Not asking for discounts or earning rewards
When’s the last time you picked up the phone and simply asked if there are additional discounts available? It usually only takes a few minutes of your time and can lead to a decent amount of savings, especially if you have a history of being a good customer.
3. Being uninsured or over-insured
Choosing your insurance policies is a delicate balancing act between making sure you’re insured enough, but not insuring so much that you’re wasting money on a high monthly premium. For example, if you have an old car worth just $500 and can afford to pay for a different car out-of-pocket, you probably don’t need comprehensive coverage.
4. Making a claim for every little thing
Insurance is there to protect you when something goes wrong, but that doesn’t mean you should make a claim for every blip you encounter. Here’s why: Filing a claim can affect your insurance rate and could impact you for several years. If something happens and it’s inexpensive to fix, you’re likely better off paying out of pocket than involving your carrier.
5. Not buying renters insurance
Renters insurance is relatively inexpensive as far as insurance products are concerned, yet only 37% of renters have purchased insurance. According to PolicyGenius, the average annual cost of renters insurance, which covers both your personal property and personal liability, is $180. Given its low cost and huge potential savings if something were to happen, renters insurance should be a no-brainer.