If you’re in this position, don’t panic. As a general public insurance agent working for A-Risk, we are all guilty of making minor mistakes that can quickly become expensive. Here’s the thing about life, there is no such thing as perfect. In fact, one bad decision often leads to several later ones. That’s why it is extremely important to always do your homework before making any major decisions concerning insurance. Read on for five common slip-ups and how you can avoid them.
1) Ignoring Exceptions
One big mistake many insurers make when they apply for new or renewal policies is assuming everything will be covered. There are exceptions which are not covered by standard coverage. Examples would be paying an unexpected bill, losing possessions during the time of accident and even being a victim of an act resulting from drunk driving. Be sure to read through each policy carefully and check if there are any exclusions. This way, when an insurer is notified, they will be able to take the appropriate steps. Finally, consider asking questions if you have the opportunity to speak with the insured about their experience. Even if a client has never been involved in a serious incident, they may still want to know what the company did to help. It could save both parties the hassle and unnecessary money that would come along with having to contact the business. And if you don’t need to know anything specific, use Google to find out more information about the topic. For example, here is some information about accidents caused by distracted drivers. Keep in mind, however, that these examples do have some exceptions, and insurance companies tend to offer at least basic coverage regardless. Be aware that there will likely still be exceptions. Still, if a claim does occur, the policy holder may want to work with other resources such as a lawyer to determine who should investigate the matter and why.
2) Waiting Around While Your Partner Lives Abroad
Unless your partner resides abroad, you probably shouldn’t wait around for them. However, you may want to consider doing so if you are going through something stressful and you have limited options. The last thing you want is to find yourself stuck without insurance while your loved one is abroad (or worse, dead). Make sure that you are familiar with all the rules and regulations associated with international travel. Also, keep in mind that international travel requires planning and preparation. You may have to get passports in order to go back to the U.S., so it can be difficult to plan ahead. So, it is important to prepare. Plan everything in advance. This includes packing essentials, purchasing necessary insurance and researching insurance companies. With this knowledge, you can leave room for unforeseen events in case you need emergency assistance. And if your main goal is to stay away from foreign risks, you can always contact friends and family back home for support.
3) Not Making Sure All Policies Are Current
A lot of people like to think they get affordable insurance because they have great credit scores. They might think that they’re protected because they have good credit scores. However, depending on where their financial lives are located, insurance rates may vary. Most households spend thousands of dollars per year on insurance premiums and it’s usually impossible to predict exactly where your premium will go. Because of this, it’s best to understand your options before renewing your policy. Depending on how long you’ve had an insurance policy, it’s possible to reduce costs by switching providers. However, if someone is using multiple types of accounts for different businesses, this can cause problems down the line. Find out which type of company you keep (if you have many), and talk to the provider directly to see if they have any discounts that may help with your rate. Remember, though, that sometimes companies may offer lower prices in the short term. Some products may also qualify for incentives or rebates. Always shop around. Know your current provider so you are prepared to make informed choices.
4) Getting Into An Accident Without Knowing Why It Happened
One big mistake for most adults is getting into an accident when they don’t know the reason why it happened. Many insurance companies provide free consultations. These can be very beneficial for you if you are confused or just want to determine whether or not your car is worth your money. Take note that even if there is no clear cause of the accident, a quick trip to an auto repair facility may give you valuable insight into what took place. Another option is to work with a professional injury attorney who will investigate the circumstances surrounding the accident to determine exactly what occurred. This way, they can give you advice on what course of action is best for you. Once you have decided to pursue legal action, you can hire an experienced personal injury lawyer with expertise in your area so he or she can fight for compensation. It’s essential to seek treatment and seek emergency medical attention if necessary. Letting untreated injuries damage your vehicle can put your finances at risk, especially during the winter months. Don’t let this happen to you again! If you need to visit a medical clinic for minor injuries, look for facilities that allow walk-in appointments. Doing so will help ensure that you receive safe care and won’t waste your insurance company’s money.
5) Insuring Yourself For Things You Can Outsource
If you’re currently employed, chances are that if you lose your job, you would receive unemployment benefits. Under the Unemployment Act, employers must pay employees a percentage of their wages as an “employee benefit,” which includes disability, life insurance and workers compensation insurance. Although you may not have received employee benefits, or you may not be eligible, it would be wise to secure extra protection in the event that your employment status changes. Consider looking into non-traditional coverage such as life insurance to protect yourself if you lose your job. Life insurance policies include funeral expenses, mortgage payments and debt repayment. At AIS, our agents will review your situation, discuss options, determine if a traditional life insurance policy would be the best fit for you, and can even assist with designing a customized policy. No matter how you feel, whatever happens next, your life is important, and that means you need to do what is right for it.