(2) Shopping On Price Alone
It is one of the silliest & highly common insurance buying mistakes to avoid while shopping for policy. You should never purchase a policy with lowest premiums. People often compare insurance policies simply on the basis of price alone.
They often forget to consider the overall reputation of the insurer & the type of coverage provided for a given amount of premium.
Generally, health policy with high premium amount will require you to pay lower amount on healthcare services while visiting the doctor.
Thus, you should avoid this mistake by understanding the coverage, associate benefits of policy coverage, as well as other terms & conditions affecting the claims.
[Read Also: 4 Common Auto Insurance Myths About Shopping Around]
(3) Excessive Reliance On Assumptions Or Outdated Figures
It is another common insurance buying mistakes to avoid while selecting the right policy. Economic conditions changes with time. This even leads to an increase in inflation, price of various raw materials, cost of labors, various household assets, and many more. Now, you might need more coverage as compared to the past situation.
For example, you have selected your life insurance coverage on the basis of current income. If something happens to you & you are no longer around. You need more capital at work to provide same income to your beneficiary.
Similarly, in case of homeowner’s insurance, your home will become under-insured after major renovations. You previous policy can’t meet increase in the cost of constructions due to high cost of materials & high cost of labor.
Thus, you need to review your policy coverage on annual basis to make sure that it still fits your needs. You should not hesitate to consult an agent for any professional help.
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