Fear is an important motivator when it comes to buying insurance. We all worry about what could happen to assets like cars or homes, so we buy insurance to help us maintain financial stability if something bad should happen.

When we pay annual premiums over and over again, we expect our insurance policies to perform for us when we need them. Unfortunately, the outcome isn’t always what we anticipated and usually it isn’t because something is inherently wrong with the policy, but rather, it results from insurance “mistakes.”

Here are a few of the most common insurance “mistakes”:

Purchasing Inexpensive Insurance.  Insurance products often follow the trusted saying of “you get what you pay for.” Saving money by purchasing the cheapest policy you can find may not necessarily be your best option.  Initially, those low premiums seem like savings; but if a loss isn’t paid because a peril isn’t covered or a loss exceeds your policy limits, then those expenses come out of your pocket instead. We will always recommend options that we perceive to be your “best insurance value.” We define your “best insurance value” as the policy with an affordable premium that includes quality coverage that is provided by a trusted and financially strong insurance company.

Paying Too Much Premium.  You may be able to reduce your premiums by eliminating coverage you don’t need or increasing your deductible. Submitting claims because you have a low deductible can cost you a claims-free premium discount or cause your insurance company to drop you, so consider increasing your deductible and receive a significant premium discount. Also, make sure you’ve talked to us about applying for any premium saving discounts you may be eligible for.

Not Paying Premiums On Time.  Failing to pay your premiums on time, or not at all, can cause your coverage to cancel during the policy term or upon the expiration date of the policy. From our perspective, it really doesn’t get any worse than that! To avoid any disruption of coverage, please pay your premium when you receive the first premium notice or set up automatic payments through your bank or insurer.

Not Reviewing Policies.  Making assumptions about what is covered can burn you. All policies have limitations, so never assume all situations and all possessions are covered. Please review your policies and endorsements carefully when they come in and let us know immediately if something doesn’t look right. When in doubt, ask us just to be sure!

Not Reporting Changes.  Failing to inform us about changes that could affect your insurance needs in a timely manner could lead to a disastrous situation. If you make improvements to your home, buy a new car, or experience any other “change” that may affect your insurance program, let us know as quickly as possible so we can add coverage to your policy before the coverage becomes necessary.