3 Insurance Mistakes That Can Cost You Dearly

1. 3 Insurance Mistakes That Can Cost You Dearly Buying insurance can be a complicated process. Aren’t we all trying to save money on premiums without affecting coverage? Shopping around is good, but don’t believe everything you read about saving money. Reducing coverage only to lower costs is more like dieting without exercising: you’re more focused on the numbers than overall health. Here are three insurance mistakes that could cost you dearly. Underinsuring Insurance is one of those things that people take for granted, until a situation arises where they need it most. The 2014 Commonwealth Fund Biennial Health Insurance Survey report found that nearly 31 million people in the US are underinsured. Paying for more than you need is a waste of money, but not having enough insurance can be far more expensive. For example, the minimum auto insurance requirement usually isn't enough to cover theft, vandalism or natural disasters. Skimping on auto insurance can add a few more dollars to your pocket, but an unfortunate incident can set you back tens of thousands. Hire an experienced insurance advisor to find an insurance that’s right for you. Not reviewing your insurance regularly An insurance policy isn’t something you buy once and never look at again. For example, you may have insured your house for $200,000 when you purchased it a decade ago, but now it could cost you $300,000 to rebuild. Estimating the cost it will take to rebuild your home helps you understand its current worth. $100,000 is a huge gap in what a home was worth 10 years ago, compared to what it's worth today. So it's best to evaluate your insurance policy at least once a year and adjust if required so that you actually receive the coverage you're expecting. Sometimes, you are offered an inflation guard to protect you from price increases, but that’s honestly not enough to protect you. Skipping the details Yes, it is tedious to read every word of an insurance policy. But it is a legal document, and it's well worth it to invest the necessary time and money to read and understand every line – especially the fine print! This can help you avoid nasty surprises when an emergency arises. At Driscoll Insurance Services LLC, we make sure our clients are aware of exactly what is in their insurance policies. We work with almost all major insurance companies in Pittsburgh, and we'll be happy to answer any questions you have about your policy so you can make an informed choice. When it comes to insurance, price isn’t a good indicator of quality. Don’t buy the cheapest policy available. Make sure you're covered by insurance that factors in your requirements the best.

2. About the author: The author manages an insurance agency; his company has partnered with some of the best insurance companies in Pittsburgh and helps families find affordable insurance quotes.