1. Buying a wrong insurance
If you buy a wrong insurance, you could end up paying for unnecessary policies. Therefore, please read and understand the policy and being aware of its fine print in order to determine whether it will really prove useful to you in the future.
2. Not updating your insurance
Major changes in your life, such as getting or losing a job, getting married, and having a child, could affect your insurance coverage significantly. Do consider updating your coverage whenever you are expecting any major changes to occur. But, please always take time to review your policy before the designated renewal period avoid making unnecessary changes.
3. Not looking around for other deals
One of the most common and biggest mistakes that people make when buying insurance products is not looking around for other insurance deals. Most people just find one insurance agent and rely on that person to handle everything. If you impulsively buy your insurance and don't look around, you might miss finding better coverage or a better price.
4. Comparing the prices only
The price is only one of the important factors to be considered in insurance purchasing. Besides that, you should also make sure that the company you buy from is licensed, credible, and financially stable. It would be meaningless when we are getting a good price but the insurance firm won’t be able to deliver the necessary services later on. Therefore, you should research and solicit feedback about the company from people who know about it.
5. Not knowing how much insurance you need
One of the reasons buying insurance can be a tough task is it is quite difficult to assess how much insurance you actually need. This can result in either over-insuring or under-insuring yourself. To avoid this kind of mistake, you can seek the advice of an insurance agent, preferably someone independent, so personal interests will not be involved. You will also need to determine how many assets you have and whether you have any major illnesses.
6. Not taking time to understand the policy
Understanding and knowing the contents and the fine print of your insurance policy is a fairly basic requirement. Not taking the time to understand your policy can cause disastrous consequences especially when you really need the insurance and realize that it is insufficient.
Always think of insurance as a protection you are making. Therefore, equip yourself with knowledge about this commodity to get the most out of your purchase.
Edited by: Xaivier Chia