5 Common Insurance Mistakes to Avoid

November 16, 2012

Everybody needs insurance coverage, whether for your home, car, business or all of the above. But insurance can be a confusing topic and making mistakes is common if you go it alone.

As a basic guide, we’ve compiled six common insurance mistakes to avoid when shopping for insurance. For more information and help purchasing insurance in Ohio, Kentucky or Indiana, contact Burkhart Insurance Agency.

1. Insuring Your Home for Its Real Estate Value

Home insurance is designed to cover the cost of rebuilding your home if it is damaged or destroyed in a fire or other covered event. The cost to rebuild a home is often different from what you payed for it. Research construction costs in your area and work with your insurance agent to come up with a solid estimate.

2. Not Shopping Around for the Right Price

Shopping for insurance is nobody’s idea of fun, and it can be tempting to “just get it over with” by choosing the first insurance provider you find. You could end up paying too much for coverage when you could get the same coverage for less somewhere else.

3. Choosing an Insurance Provider by Price Alone

While shopping around for the best price is crucial, you should avoid choosing an insurance provider based on price alone. Don’t forget to compare coverage options and customer reviews. Cheap coverage is cheap for a reason. Make sure you’re not sacrificing anything important to you for the lowest rate.

4. Selecting the Minimum Amount of Coverage for Your Car

Ohio law requires that all drivers carry a minimum amount of liability coverage, but these minimums are often not enough to cover damages in a serious car accident. Work with your insurance agent to make sure you have enough coverage, or you could end up paying thousands of dollars out-of-pocket.

5. Not Purchasing Renters Insurance

Renters insurance covers your possessions and additional living expenses if you have to move out of your rental due to a covered event. It can be tempting to neglect this type of insurance to save money, but renters insurance is usually inexpensive and could end up saving you a lot of money.

Buying insurance can be a real hassle. But the more you know, the easier it will be. Avoid all these common insurance mistakes and many more by working with an independent insurance agent at Burkhart Insurance Agency. We’ll help you shop around and find the best coverage at the right price for you.

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