7 Most Common Mistakes When Shopping for Insurance

a man and woman striking a deal via handshake in an officeWhen shopping for insurance, many people make costly mistakes that result in them overpaying for their policies. In fact, Americans overpay for car insurance by close to $37 billion. By understanding and avoiding these common mistakes, you can save money, find better coverage options, and avoid a lot of stress.

Do you want to learn more about shopping for insurance and how you can find the best deals on each of your policies? Keep reading these 7 mistakes to avoid while insurance shopping!

1. Not Comparing Insurance Providers

One of the biggest mistakes people make when they are shopping for insurance is not comparing different insurance providers. Often, to get the best coverage possible, you need to shop around. By comparing insurance providers, coverage options, and more, you can save hundreds of dollars each year.

One reason many people do not shop around is that it can be difficult or frustrating to get quotes and emails from so many companies. However, there are third-party websites that can compare the prices for you!

By comparing insurance providers, you can find the best coverage that fits your budget.

2. Getting The Wrong Amount of Coverage

Another huge mistake that many people make when shopping for insurance is getting the wrong amount of coverage. While each state has a minimum amount of coverage required for car insurance, this isn’t the case for other types of policies.

It is generally a bad idea to only get the minimum coverage required. If you were to get in a car accident, your minimum coverage would pay for the damage done to other people or their property. However, you would be left to pay for your own damages out of pocket.

This can cost you a lot more than it would cost to pay for extra coverage.

While you do not want to have too little coverage, you also do not want to buy more coverage than you actually need. While you may feel more protected, excess coverage won’t do anything for you. In fact, you will just be wasting money each month.

It is also beneficial to make sure your coverage from different policies does not overlap.

3. Not Researching Online

Researching insurance companies online is an easy way to find a company you can trust that offers great coverage.

First, you want to do a quick search through the reviews of an insurance company. If they have too many complaints, you may have a hard time making insurance claims and receiving your coverage.

As mentioned before, there are third-party websites that will also help you compare quotes for different companies. This can save you hours of time finding companies and learning more about their insurance coverage options.

4. Using Several Insurance Companies

Next, a mistake that you want to avoid when shopping for insurance is using several insurance companies for each of your different policies. While you may find the low-priced policies for each of your different needs, you may save more money by using the same company for each of your policies.

For example, many companies will save you money when you bundle your insurance coverage. If you have car insurance policies and homeowners insurance policies with the same company, you can often get a discount.

Make sure you learn more about bundling options with the insurance companies you are considering.

5. Forgetting To Update Policies

Forgetting to update your insurance policy is a huge mistake that many people make when shopping for insurance as it can be very costly. For example, if you have insurance coverage for your home, it will protect your home and personal belongings they are aware of if they are damaged.

When creating these policies, you have to list each of the assets that you need to be covered. If you remodel your home or make changes you forget to add to your homeowners insurance policy, these will not be covered in the event of a disaster or other type of accident.

It is also important to update your auto policies if you have a new driver. For example, if your teenager has recently gotten their license and drives your car without being added to an updated policy, they may not be covered in an accident.

Updating your insurance policies when you are shopping for new coverage can keep you more protected and may even lower your rates.

6. Not Understanding What Coverage You Need

Many people cannot understand what type of coverage they need. Because your situation is going to be unique from other people, learn more about what type of protection you actually need.

Some people also avoid getting an insurance policy that is not required. For example, renters’ insurance because they think they will not need the coverage.

However, if you have a lot of valuable belongings in your apartment, you need this to be covered in the event of a natural disaster, robbery, or another issue.

If you are unsure of the coverage you need to be protected, you can consider getting a consultation from an insurance agent to learn more about coverage options.

7. Focusing Only on Price

Finally, it is vital that you take each aspect of your insurance coverage into consideration when you are shopping for new coverage. If you only focus on the price of your insurance premium, it can cost you in the long run.

While you may save money on your monthly bills, you may find that you have less coverage and will need to pay more out of pocket in the event of an accident or damages to your property.

Shopping For Insurance? Find the Best Provider Today

When you are shopping for insurance, it is easy to get caught up in trying to find the best price possible. However, there are many other things that you should consider when finding the best coverage for your unique situation. Whether you are buying a homeowners insurance policy, car insurance policy, or anything else, you find the best provider by avoiding these mistakes.

If you need help with coverage, McMahon Insurance Agency can help! We offer business and personal insurance and can cover anything you need. Contact our team today to learn more about our coverage options or to request a personalized quote.