Common Mistakes People Make When Purchasing Insurance
Insurance coverage is not only beneficial but is also mandatory in some situations. When purchasing insurance, it is vital to understand how the policies work to ensure you avail the best plan for your needs and budget. To help you avoid making the wrong choices and enable you to take advantage of your insurance policy, Jones Deslauriers Insurance has put together a list of the most common mistakes people make when purchasing insurance.
1. Not getting enough coverage.
It may be tempting to try and save money by getting a minimum level of coverage. However, this can backfire if you have a claim, especially when there is personal liability involved. Though it is up to the consumer, it’s better to be safe than sorry. So, make sure you have at least the minimum coverage that your agent or broker recommends.
2. Choosing the wrong deductible.
The deductible is the amount you agree to pay toward a claim before your insurance takes over. At times, it can get set either too low or too high as your deductible can be manipulated to help save money on your premium. In simplified terms, the higher the deductible, the lower the premium payment is. However, it can be problematic if the deductible amount is too high and you can’t come up with it when disaster strikes. If it’s too low, you could pay more than you should in premiums each year. The best solution is to speak with a broker that can help you find the right balance.
3. Failing to understand your policy exclusions.
Every home and commercial insurance policy comes with exclusions, and it’s crucial that you know them. For example, did you know your home insurance policy doesn’t cover flood damage? Neither does it include earthquake damage. We recommend purchasing additional coverage to cover specific perils (like flooding, earthquakes, etc.). Avoid taking chances with your home and its contents. Thoroughly review your policy with a licensed agent to make sure you understand which perils are covered and which are not.
4. Not informing your insurance company of major changes.
Your insurance company or broker, need to be notified if there are material changes to your property or the way you use it. For example, if another driver is added to your vehicle, such as a child or someone else who lives with you, your insurance agent needs to know immediately. You also need to let your insurance company know as soon as possible if you are in an accident or your car is stolen. Also, mention if there is a change in how you use the vehicle, such as for business purposes. All of these variables must be updated as soon as possible, to ensure appropriate coverage.
5. Not paying your premiums on time.
If your insurance premiums are not paid on time, you risk having your insurance policy canceled. Usually, a notice is mailed out, indicating that your premium is past due. However, as more companies go paperless, you cannot count on receiving a letter. If your policy is canceled for non-payment, you will have a tough time finding insurance with another company, because a canceled policy stays on your insurance record. It may be best to set up a pre-authorized withdrawal from your bank account so that you won’t forget, and your premiums are paid on time.
6. Not taking advantage of the discounts available.
Did you know that most insurance carriers offer a variety of discounts? Some include having multiple vehicles insured on the same policy, or by having both your home and auto insurance with the same company. There are also good student discounts, driver’s training discounts, and paid in full discounts. You may also discover that driving a hybrid vehicle, having winter tires, or even not having a mortgage can land you a discount! It is definitely worth asking your broker.
For solutions to avoid common mistakes like these as well as others, reach out to the experts at Jones Deslauriers Insurance. We offer convenient home and commercial insurance in Toronto, ON, that meets your expectations and budget. Our insurance agents have the right connections and training to meet your demands. Plus, we are responsive to your needs before and even during the life-cycle of your long or short-term insurance plan. For your convenience, we work flexible hours and have multilingual staff to bring down any barriers you may otherwise experience.