Top 5 Mistakes to Avoid When Purchasing Insurance

Top 5 Mistakes to Avoid When Purchasing Insurance

April 05, 2023

As an insurance agency, our goal is to find our clients the best possible coverage for their needs. However, we know that purchasing insurance can be a daunting task, especially if you're not familiar with the process.

Avoid These Mistakes When Purchasing Insurance

To help you avoid common mistakes, we've compiled a list of the top five mistakes to avoid when purchasing insurance.

#1 Not Understanding Your Needs

One of the biggest mistakes people make when purchasing insurance is not understanding their coverage needs. Before shopping for insurance, take the time to assess your risks and determine what types of coverage you need. For example, if you own a home, you'll need homeowner’s insurance to protect your property and belongings. If you own a car, you'll need auto insurance to protect yourself in case of an accident.

#2 Choosing the Cheapest Option 

While it's tempting to choose the cheapest insurance policy available, it's important to consider the coverage and benefits provided. A policy that seems cheap at first may end up costing you more in the long run if it doesn't provide adequate coverage. Make sure you're comparing policies with similar coverage to get an accurate idea of the cost.

#3 Not Disclosing All Relevant Information

When applying for insurance, it's important to disclose all relevant information to your agent. Failing to disclose information could result in your policy being cancelled or claims being denied. For example, if you recent car accidents, it's important to disclose this to your auto insurance agent so they can provide you with the most accurate pricing and best coverage for your needs.

#4 Not Reviewing the Policy

Before signing on the dotted line, it's important to thoroughly read and understand your policy. If there are any terms or conditions that you don't understand, ask questions to ensure you're fully aware of everything the policy entails. Make sure you understand the deductible, premiums, and any other details of the policy.

#5 Not Reviewing and Updating Your Policy Regularly

Insurance needs can change over time, so it's important to review and update your policy regularly to ensure you have the coverage you need. For example, if you purchase a new home or have a child, you may need to update your homeowner’s or life insurance policy to reflect these changes. Reviewing your policy on an annual basis is a good practice to ensure you have the right coverage at the right price.

Ensure You Have the Right Coverage

By avoiding these common mistakes, you can ensure that you have the right coverage for your needs and protect yourself and your family. If you have any questions about insurance or need help finding the right coverage, don't hesitate to contact our team of experienced insurance agents. At Fiorentino Insurance Group, we're here to help you make informed decisions about your insurance needs.