5 mistakes people make when buying insurance
“To Err is Human, To Forgive, Devine”
You are human and like every other human being on the planet you are likely to make a mistake or two and although your friends, family and even boss will probably forgive you for those mistakes it is unlikely that an insurance company will do the same. So, here is a guide to help you avoid making mistakes when buying insurance.
Number 1: Not using a Broker or Agent
With endless information at our finger tips and numerous comparison sites just a touch away, why would you use a middleman? Do you worry that it would cost you more and take longer? Well that isn’t always the case.
The problem is that without the advice of a professional and the possibility that you don’t have that much of an interest in insurance you are likely to make mistakes when buying insurance, for example, you may to click on the cheapest option. You probably haven’t given all the necessary information and read little to none of the policy. So how do you know if you are covered for the exact thing that you were looking to be covered for in the first place?
Insurance in a necessary part of our life and although it may seem like a chore you must make sure it is done right. Mistakes made whilst buying insurance cannot be easily undone. Find yourself a Broker you trust and sit down with them to go through the information. It may take a bit longer but you might be pleasantly surprised that it doesn’t cost anything more. Then you can rest assured that you will be covered if something goes wrong and if in the unlikely situation that you’re not fully covered you can go back to your broker for support.
Number 2: Not Reading the Paperwork
You probably find the thought of reading an insurance policy pretty dull, they are generally full of industry jargon which feels like it is made to confuse the you. However, if you have a Broker that can help you when reading an insurance policy and make sure you are covered for everything that you need to be covered for it could make the process a lot easier and you are less likely to make mistakes when buying insurance.
Can you imagine how you would feel if your washing machine springs a leak an flood the kitchen floor and when you call your insurance company they tell you that you don’t have flood cover in your home insurance? All it would have taken to prevent the rejected claim was a bit of your time to read through the policy.
Number 3: Not Explaining Past Claims
Transparency is key to an efficient insurance policy. You may think that hiding a few claims in your past may prevent the premium going up but you’ll be looking at a lot more money if you’re not covered when you need to be. It is best to be completely open and divulge all information, you could be surprised, the premium may not go up at all.
Making this mistake when buying insurance will cost you more money in the long run.
Number 4: You Get What You Pay For
You probably know that in life this is a rule of thumb. Buying insurance is a cost that most people begrudge paying as you don’t see anything for your money until something unplanned happens like you have a car accident or a hurricane blows away your roof.
Cost is factor that should be considered but only after ensuring that the policy covers everything it should, only then should you consider price.
Don’t make the mistake of choosing price over value.
Number 5: Not Paying Attention to What the Policy Says About Reporting Claims
If an incident happens that may turn into a claim, you must report it to your insurance company straight away. Most policies will refuse to pay out if you delay. Even if you are involved in something like a car accident and there is no damage on your car that you want to make a claim for you still MUST report it to your insurers.
All of the mistakes listed here are easily avoidable with a tiny bit of prior planning and thought. If you can avoid making these mistakes when buying insurance, then your insurance will work hard for you.
If you have experienced a rejected or disputed insurance claim and would like some advice please do not hesitate to get in touch with us at Flaxmans…