Whether you're shopping for a new insurance policy or renewing your old one, it's important you don't make mistakes that could cost you money or leave you vulnerable. Davidson Insurance Agency, an experienced seller of auto, life, and homeowners insurance in Lincoln, NE, offers some suggestions to help you get the right coverage at the right price.
3 Important Mistakes to Avoid When Buying Insurance
1. Setting Deductible Too Low
Many people automatically choose the lowest deductible amount to make sure they pay as little out of pocket as possible if they ever have to file a claim. However, when you're buying insurance, don't forget about the “if” factor. You might never have to file a claim, especially if you are a defensive driver, live in a safe neighborhood, keep your property in good repair, and have few high-risk habits. Meanwhile, to get the lowest deductible, you must pay out of pocket every month in the form of higher premiums. Unless the peace of mind you receive from having a low deductible is worth the extra expense, consider raising your deductible amount and cutting your monthly payments.
2. Choosing Coverage Based Solely on Price
Another insurance mistake people make is to choose their coverage based solely on price. Instead of focusing on a dollar amount, consider the value you receive for your money. Can you increase your coverage limits considerably if you pay more? Does the cheapest policy have important exclusions that another insurer covers for slightly more money? Instead of looking for the most-affordable option, try to get the most bang for your buck.
3. Using Outdated Pricing
When renewing an existing policy, many people forget their situation may have changed during the previous year, and their current coverage or pricing is no longer up to date. For instance, if you've gotten married, grown your family, refinished your basement, added security systems to your home or car, or made other important changes, you should ask your insurance agent to recalculate your coverage and premium amounts to reflect those changes. Otherwise, you could be paying too much, or you could be woefully underinsured.
Davidson Insurance Agency in Lincoln helps you avoid making the above mistakes by working closely with you to design a policy that fits your individual needs and your budget. Visit their Facebook page to view hours of operation and driving directions, or call (402) 423-4357 to request an insurance quote from a friendly, knowledgeable professional.