5 Common Insurance Mistakes That Cost You Money (and How to Avoid Them)!
Insurance is an essential protection tool for our car, home, health, and family. However, many policyholders make mistakes that can cost them dearly when they actually need their coverage. This article highlights the 5 most common insurance mistakes and explains how to avoid them.
1. Choosing insurance based only on price
One of the biggest mistakes is selecting an insurance policy solely based on the lowest cost. Cheaper insurance often means limited coverage or many exclusions.
What to do:
- Compare coverage, not just prices
- Ask for a detailed breakdown of what is and isn’t covered
- Consult a professional insurance advisor
2. Underinsuring property or vehicles
Underinsurance is common, especially in home and business insurance. When the insured value is lower than the actual value, compensation in case of damage will be reduced accordingly.
Example: If a property is worth €150,000 but insured for €100,000, you will not receive full compensation in case of damage.
Solution:
- Regularly review insured amounts
- Update your policy after renovations or new equipment purchases
3. Not reading the terms and exclusions
Many policyholders never read their policy terms. This leads to misunderstandings, especially when a claim arises.
Important:
- Every insurance policy has exclusions and conditions
- Some coverages apply only if specific requirements are met
Tip: Ask your insurance office to explain the key points clearly and simply.
4. Not reporting changes in your life or property
Changes such as:
- buying a new car
- moving to a new home
- family changes
- changes in professional activity
must always be reported.
If you don’t notify your insurer:
- your claim may be rejected
- your policy may not apply correctly
5. Delaying the reporting of a claim
Every insurance policy has a specific time limit for reporting a claim. Delays can cause serious issues with compensation.
Remember:
- Notify your insurance office immediately
- Keep photos and documentation
- Follow the instructions you are given
Conclusion
A regular review of your insurance policies can save you from unpleasant surprises and financial losses. Proper insurance is not a cost – it is an investment in your peace of mind and safety. By avoiding the above mistakes, you ensure that you will be truly covered when you need it.
Find an insurance advisor who:
- guides you properly
- tailors the insurance to your real needs
- stands by you at the time of a claim
Contact us for a free review of your policy by clicking here.