There’s no doubt about it, insurance is one of those necessary evils in life. None of us likes paying for it, but when the time comes to make a claim, we will be incredibly happy we have taken the time, effort and money to get coverage. At least, that’s the theory.
Unfortunately, a lot of people make a lot of mistakes when it comes to insurance. Even when they decide to get a plan, they often end up losing out – either by fair means or foul. However, by treating your insurance payments, plans and coverage as important rather than a secondary thought, you will go a long way towards making sure you get the right results and compensation when you need it.
With this in mind, let’s take a look at a few different insurance areas that can often cause you trouble. We’re going to dive into life and home insurance, auto insurance and a look into getting the right coverage for your working life or business. Read on to find out more!
Your Life and Your Home
There are a few different things to think about when it comes to getting cover for your life and home. And make no mistake about it, there are a lot of issues that can arise when you are looking for a plan that suits your needs. Let’s start this little exercise by going through some of the basics of insuring yourself and your home.
The Golden Rule
Insurance is a simple idea, but we’re all guilty of overthinking it. Essentially, there is only one golden rule that you need to know. Consider all the important things in your life that you couldn’t do without – your car, work computer, perhaps even your TV, for example. If you can afford to replace them immediately in the event they break or are stolen, you don’t need to insure them – but if you can’t afford to replace them, you need it. It’s an astonishingly simple way of looking at your insurance, yet most households are guilty of insuring the wrong items or failing to make sure the right ones are included in your plan.
If Something Bad Can Happen, It Will
The unfortunate thing about life is that if something bad can happen, it probably will – and when you can least afford it, too. You can look up Murphy’s Law for more details on that. Ultimately, it’s vital for you to be prepared for crises of all kinds, and make sure that you are covered for the inevitable. Research is critical, here, and it’s kind of like playing the odds. For example, if you live in an area that has a history of earthquakes, it doesn’t matter how much your premiums are each month – make sure you get on a relevant plan. Similarly, if you are planning on taking a vacation in foreign climes, you can guarantee that the one time you don’t get coverage will be the time you or a family member ends up injured.
Read the Small Print
You might think you are covered for absolutely everything in your home. But even if you buy full cover one year, by the next it could be out of date. Every time you buy something new, you could be stretching your insurance beyond its coverage. To make matters worse, you may think you have cover for something, but the insurer’s liability could be negligible. Always read the small print and make sure you have a full understanding of the plan terms and conditions, and also your responsibilities.
A Good Price Isn’t Necessarily the Cheapest Price
We are all exceptionally attracted by low prices, but the reality is that it doesn’t mean we should plump for them every single time. An insurance price is only good if it gives you what you need, as and when you need it. And in the case of life and home insurance policies, the truth is that few of us can really guarantee that for the simple reason that we are often too fixated on price. Here’s how to ensure you are always on the best possible plan. First, look into each plan very carefully, go through the small print with a fine tooth comb, and take a look at the history and reputation of the company you intend to use for coverage. Have they been around for a long enough time? Are they reputable enough with enough people? Do the terms contain any conditions that seem a little awry or worrying? Putting money into an insurance plan is always something of a gamble, but reducing that risk is critical when you are playing the game.
Your Business and Work Life
Anyone with a business understands the importance of getting the right insurance. You need to cover yourself for liabilities, employees, and perhaps even get yourself on a commercial property policy amongst many other things. However, as a general rule, far too many business owners settle for insurance plans that simply aren’t good enough. Similarly, if you are an employee, you should never assume that because you work for someone else you will get the necessary compensation is something should happen. Always take the view that you are responsible for yourself – here are some of the biggest mistakes you might make with business and work life insurance.
Failure to Cover Yourself
First and foremost, far too many people won’t bother insuring themselves for work purposes. It’s a simple case of thinking the worst will never happen, but the truth is that accidents can occur in any field. For example, let’s say you are a doctor in the early stages of your career, with a mountain of student debt to pay off. As one disability insurance guide – you can read it on Insurestat – if you have an accident leaving you debilitated, you may still have to pay off all that money if you don’t have insurance. You should also insure the parts of your body that help you make money – models often insure their legs, while pianists might insure their hands, for example. If you won’t make an income after damaging the part of the body you use to work, consider insuring yourself.
After your home, your car is likely to be the most expensive possession you own. And it’s also a lifeline to many other things in your life, from getting out to buy food through to traveling to work. Take away your car, and it can impact your life in hugely negative ways, particularly if you live in an area where driving long distances is par for the course. So, make sure you have the right kind of insurance cover to give you a fallback if you should ever need it. Also, make sure that you understand what you are paying for – take a look at these major auto insurance mistakes that can end up causing you serious financial strife.
Failure to Shop Around
Like most insurance plans, the introductory deal on your auto insurance will eventually run out. And unless you change it before it automatically renews, you’ll end up paying a lot more for the pleasure. All insurance cover has a tendency to do this, but with autos, it seems to be at the extreme end. Make sure you shop around well before your current plan runs out and you can save hundreds of dollars over the course of a year.
Little White Lies
If you do have to make an insurance claim, it can be incredibly tempting to be a little economical with the truth. However, if you are dishonest with an auto insurer, it’s likely to end up being completely uneconomical. So, if you plan to allow a new driver to use your vehicle, tell them. If you pick up a ticket, tell them. And if you run over your mileage allowance, tell them too. Ultimately, insurers have ways and means of finding out whatever they need, and if they catch you being dishonest, you’ll face enormous extra charges, and may be dropped and blacklisted completely.
A final point on your auto insurance. There are a lot of little mistakes you can make that could end up costing you a lot of money. For example, if you let your pet roam free in the car without the relevant harnessing, it can void your claim completely – as could hanging fluffy dice or objects from your mirror. It’s the same if you wear high heels or flip flops in the car, or fail to do the little maintenance tasks you know need doing. Ultimately, your insurance company wants you to take care of your vehicle as if it was theirs – and they will punish you if you don’t.
As you can see, there are many areas of life that require insurance – whether we like it or not. But because of busy lifestyles, lack of care, or just plain old oversight, many of us are covered by the wrong plans, paying too much or too little, and will have a nasty shock when the time comes to make an insurance claim. Hopefully, these mistakes we have highlighted today will help you identify some of the areas you might be lacking in – now go check that small print!