Everyone has a friend that has their own ‘my two cents’ on buying insurance, so when being offered advice, take it with a pinch of salt. Don’t get me wrong, opinions can be great, you just have to know when you should seek expert assistance. Insurance money saving ‘tricks’ could save you a few dollars on your premium, but if something were to happen, you could lose everything. To illustrate this point, and to help you when buying insurance, here is a list of five worst pieces of insurance advice that you will get.
1. Sugarcoat the insurance application a little for a better price
Adding a few small lies or inaccuracies may be tempting to save a few dollars, especially when it comes to a pre-existing health condition or car malfunction, but stop and think. If it’s the insurance agency’s job to know when someone is not telling the truth, they would be out of work if they couldn’t spot when someone’s fabricated some information. Not only will this stop an insurance company paying out the benefits, but lying on an insurance application form is a felony in most states.
2. You can save a few dollars on disaster insurance
You can certainly save some money by not covering yourself against earthquake, tornado or flood disasters but if the unthinkable does happen, you will lose everything. If you don’t have natural disaster insurance, you will not get a cent, so you need to consider it as a possibility. It all depends on your location.
Let’s take floods as an example. If you live in an area where there is a body of water that could overflow, then there is a high risk of it happening and you need to protect yourself, if the risk of flood is low, then your insurance premium will cost very little.
3. Renters insurance is a waste of money
If you’re renting an apartment and something awful happens and all your stuff is gone, unless you have renters insurance, you will lose all your belongings. That’s right, your landlord may have insurance on the apartment, but your belongings and the cost of alternative accommodation are not covered. So if you rent, it’s a wise choice to pick up some aptly named renters insurance.
4. Get the cheapest car insurance possible
Most states have laws that dictate the minimum level of insurance that you need to buy when insuring your vehicle. So a lot of people tend to go with just that. Some of these laws are just there to put a minimum in place, but it would be smart to educate yourself on car insurance and figure out what you need, so you can actually pay a claim if it comes to it.
You can also get uninsured motorist coverage, where if you get hit by an uninsured individual, you will still be covered. It may sound unnecessary, but the number of uninsured or underinsured drivers is on the rise, so this kind of cover can be invaluable.
5. The price of gadget insurance could buy you a new phone in itself!
Sigh, I speak from experience here when I say that gadget insurance is a good idea. I have broken my phone twice this year, and it cost a lot to fix more than a smartphone insurance premium. If you add up the price of a tablet, a desktop PC, a television and a laptop, it comes to a lot of money, which is why it’s not wise to have valuable electronics lying around uninsured. It might be a good idea to look into that if your tech is valuable to you.
Saving some cash is always a great idea, and don’t get me wrong, you can save money on insurance too. Just don’t leave yourself exposed to risk. If you want some professional advice on insurance, ask one of our experts.