By Julius Choudhury
Your first mistake, of course, would be not buying insurance at all.
It is important that you have adequate coverage for all of your basic needs, whether you're buying car, life, home, business, or travel insurance.
Without insurance in place, your financial position could be put at risk. If disaster struck, and you weren't adequately protected, you would regret not getting insured in the first place.
So, don't make that first basic mistake.
Then avoid these mistakes when buying insurance.
Mistake #1: Not researching insurance companies
When searching for an insurance company, you really do need to put the research in. There are several factors you need to consider, including:
How long they have been in business - The more established they are, the more trusted they will probably be.
The financial strength of the company - If they can't pay out on an insurance claim because they don't have the finances needed, you will be stuck.
Efficiency - The quicker they can help you the better. After all, you don't want to wait an age for a payout, as your finances could be threatened.
When researching insurance companies, use the independent rating agencies that can be found here, and look online for customer reviews too.
And check for the third-party services insurance companies use too. The services provided by recordrs.com would make retrieving medical records easier in an accident case, for example, so check with the insurers you consider.
By committing to research, you will rule out those insurance companies who won't serve you well, so do your homework first.
Mistake #2: Over or under-insuring yourself
You need adequate coverage for your needs. If you over-insure yourself, however, you will end up paying more than you need to. And if you under-insure yourself, you will become financially unstuck when you later realize you won't be compensated for the expenses you have incurred.
To avoid this mistake, speak to an independent insurance agent. They will advise you on the best way to protect your assets and will instruct you on the amount of coverage that you will realistically need. Be sure to read through any policies before signing too. This way, you will be able to assess whether or not you are going to be adequately covered for your personal needs.
Mistake #3: Not shopping around at renewal time
Whenever renewal time rolls around, don't assume you need to stick with the same insurance company. They aren't your friend, so you don't always need to be loyal to them. Of course, if they offer you an incentive to remain with them, you might want to consider it. But you might save money by making the switch to another insurance company, so make the effort to shop around.
You should also let your current insurance company know of any better deals you have found, as they might be willing to alter their renewal price.
Insurance: You need it, but you don't want to make a mistake in the buying process. Consider our suggestions then, and look for other advice online.
