5 Reasons We Overpay On Our Insurance Policy
Unfortunately, we could make so many mistakes that we end up overpaying on our insurance policy. Here are things that we should avoid to do:
1) We show everything off:
It is a mistake to not keeping it on the down low. We should know that our expensive cars or motorcycles can be stolen, if we flaunt unnecessarily. These vehicles should be brought out in special events or other occasions, not for our daily commute, especially to areas with higher rate of crime. Some cars can be more likely to get stolen or more expensive to repair.
If we drive or ride our vehicles too often without considering the overall risks, we could face higher premium rate. This is something that we should try to avoid whenever possible.
2) We don’t check insurance rates before buying the car:
It is obvious that we should know about the insurance rate before we buy a car. Too many people have a desire to get their first dream car at all cost. When they do this, they never contact their insurance company and could be surprised to know that the total annual insurance payment is equal to a quarter of the value of the car. It means that they buy a brand new “car” every four years on the insurance costs alone.
3) We purchase more benefits than necessary:
This is something that we should try to avoid and it shouldn’t be a difficult step to determine the coverage that we need. We should have a rough idea on the overall value of our assets and whether our insurance policy is significantly higher than it should. We should know more about our assets before we determine the amount of proper liability.
As an example, unmarried people who rent a house don’t have significant liability compared to married couple with a house on a mortgage. In this case, we should make sure that we have enough liability to cover our overall expenses. A slight increase in coverage could cost us some amount of money. We should have careful consideration when dealing with liability insurance.
As an example, if our car is only priced at a few thousand dollars, it is probably a good idea to drop the collision insurance component, which is often the most expensive. This will make sure that we spend much reduced amount of money for insurance-related purposes.
4) We don’t show our professional certificates:
Many insurance companies provide discount for highly experienced and skilled professionals. If we have certain occupations, good experience and good education, we should let the insurance company know about this. Our professional certifications and educational background could be included in the overall calculation.
5) We don’t shop carefully:
It is a bad mistake if we don’t shop around. In some cases, changing insurance companies can provide us with significant savings. Insurance companies can be quite similar, so we may compare them apples to apples. As an example, they may have similar deductibles but different details in coverage.