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5 Biggest Mistakes When Buying InsuranceInsurance can be a tricky purchase.  Auto lienholder happy?  Check.  Mortgage lender happy?  Check.


But this simply isn't enough!  Some things on your insurance policy deserve a little more attention.  As an insurance agent, here are some of the BIGGEST coverage mistakes I’ve seen.


Mistake #1:  Buying Only The Required State Minimum Liability Insurance


Every state has a minimum amount of liability insurance that is required in order to drive.  But it’s typically no where near enough coverage!  Choosing only the minimum liability insurance could leave you open to a lawsuit, garnished wages, or potentially losing an asset, like your home. For Ohio, the minimum limit required is $25,000 per person/$50,000 per accident for bodily injury liability and $25,000 for property damage. If you have a bad enough accident, do you think that will be enough to protect you?


Discuss different liability amounts with your agent to see what is necessary based on your income, net worth, and liabilities.  (Tip- the premium difference between limits is usually not much). 


Mistake #2: Not Insuring Your Home For Replacement Cost


Many people think they only need enough coverage to insure their home for the amount they paid for it.  Not true!  You need to be insured for the amount of money it would cost to REPLACE your home.


If a fire or tornado destroyed the house, you would need insurance to replace it.  The total cost could be tens of thousands more than the house would have sold for on the market.  If you’re currently only insured for the cash value of your home, you could be at risk! 


Mistake #3: Buying Life Insurance Through Work


Most people tell me that they have life insurance through work and aren’t interested in purchasing their own coverage.  This is also a mistake.


The problem?  The majority of us don’t stay at jobs for 30 years anymore.  And if you develop health issues and leave your current employer….you might not be able to get coverage again!


When you purchase your own life insurance (which is extremely affordable), you are covered no matter where you work or what health problems you might develop in the future.  It’s the smarter choice!


Mistake #4: Buying The Cheapest Policy


It’s tempting to shop for insurance and just pick whatever is the cheapest, but it’s usually not the best idea. 


First you want to make sure that you’re buying from a reputable company.  You want a solid insurance carrier that you can trust to pay your claims. 


And you want to make sure you’re comparing similar items. Does the cheaper policy only insure your home for cash value instead of replacement cost (like mistake #2)? Does one company exclude water leaks but another cover them?  Big details can be hidden in the small print!


Mistake #5: Not Using An Agent


Best way to avoid ALL of these mistakes?  Work with an insurance agent! 


We've made it our life's work to know the ins and outs of insurance. We’ll make sure your liability limits are high enough, that your home will be replaced after a loss, that you won’t lose your life insurance when you change jobs, and that you aren’t buying an inadequate policy that doesn’t protect you. At the end of the day, we'll do what's right to take care of you and your family.


Call us today at 937.592.4871 or request a quote online to get started! We offer Ohio auto insurance, Ohio homeowners insurance, Ohio renters insurance, Ohio life insuranceOhio health insurance and Ohio business insurance, with lots more available- just ask!

Posted 9:00 PM

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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
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Alan Galvez Insurance
134 W. Columbus Ave.
Bellefontaine, OH 43311

 (937) 592-4871


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