How to Avoid the Worst Insurance Slipups
Tuesday, February 21, 2017, 6:00 AM | Leave Comment
Purchasing insurance is supposed to give us peace of mind. It is protection that keeps our homes, cars, possessions, and families safe.
But there are some common mistakes that can do more harm than good if you aren’t sure what you are doing during the buying process.
Here are some of the worst ones you need to avoid.
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Carrying Bare Minimum Auto Insurance
Although it is wise to shop around, you still need to be mindful of cutting costs to the bone.
When choosing auto insurance coverage, make sure you carry more than the state minimum liability coverage. Experts advise at least $100,000 in bodily injury coverage per person.
And if you own a car outright valued at $10,000 or more, that’s no excuse to drop down to just liability coverage, as you will not be able to replace your vehicle if you have an accident that’s your fault.
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Not Carrying Flood Insurance
It is important to remember that homeowner’s insurance does not cover flood damage.
Even if you live in a low risk area that does not mean you will not experience flooding. A quarter of floods occur in what are defined as low risk areas.
You may be putting you and your family’s belongings in serious jeopardy by removing this coverage.
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Not Purchasing Renters Insurance
Whether renters realize it or not, the landlord is not responsible for any of your lost, stolen, or damaged goods.
It is the responsibility of the renter to protect his or her belongings. This protection also pays living expenses if you must evacuate.
Fortunately, renter’s insurance is relatively cheap and can be purchased for just a few dollars a month in most cases.
If your landlord isn’t providing basic protection however, you might need to ask more questions (http://www.caveylaw.com/).
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Purchasing Too Much Health Insurance
Purchasing health insurance has changed dramatically since the Affordable Care Act, and many people, especially the younger generation, have to purchase coverage.
If you are a relatively healthy person looking to save money, you may want to have a higher deductible and a lower premium.
You may pay more out of pocket when you go to the doctor, but since that will not happen frequently, you will end up saving more money than if you went with a more costly and comprehensive plan.
The pitfalls of insurance can be many. Always keep in mind that the purpose of insurance is to save you money in the event of an emergency.
Making sure you have quality coverage in the areas of greatest risk in your life, such as auto, home, and health, is the wisest decision you could make.
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