Here are some common traps policy holders fall into that can cause premiums to increase or make you realize later that you do not have the right coverage. Avoid these common policy pitfalls and turn frown on your insurance policies upside down.
This will also provide some insight into things you need to think about related to your policy as well as policy offenses to avoid that negatively effect your policy and consequently your premium.
- Late Payments- if you do not pay your policies on time and your policy lapses or cancels you’ll be facing a higher rate when you buy another policy. Life Insurance policy lapses are even more costly, as this is a policy that you qualify for you may not be able to replace the policy nor at the same price.
- Don’t give the Ex the “X”- don’t forget to change the beneficiary from your ex spouse to your current spouse. Legally, the benefits have to be paid to the listed beneficiary. Talk about family drama.
- Not sharing important facts- don’t “lose” a insurance policy for your family. tell your beneficiaries who your life insurance is with so they will have this when the time comes.
- Fail to take advantage of open enrollment for health insurance- Don’t miss this chance to add or remove dependents from your health plan, This is also the time to change deductibles and other coverage options. You can also make the individual plan a family plan.
- Adding the addition to the health plan-When your child your child is born you have 30 days to add the baby to your health plan or you will be paying all of their healthcare out of pocket.
- The new car secret- That new car is only covered for a short period of time with your broadest coverage on already owned autos. If you don’t let your agent know you will be without coverage in a few weeks.
- Drive for Uber- be careful when you agree to use your personal vehicle with traditional coverage for commercial purposes. This is considered business use and must have a commercial policy to be covered.
- Get a DUI-drinking and driving will hit your insurance policy hard. It will not only increase your rate by a large amount if you have a prior offense you will not keep the policy. This will put you in a non-standard market which will raise your rate even higher. Yet another reason to call the taxi and not drink and drive.
- Loaning the car out- Keep in mind coverage follows the car, you are responsible for what happens to the vehicle when you lend the car to family or friends.
- Small Claims- Making a claim for every little scratch and dent can cost you. Don’t bother making claims for damage less than your deductible. Piling up small claims can cause a big increase in your policy premium.
- Neglecting Home Inventory-Not having a items list or recorded home inventory can cost you in the event of a large home claim(ex: fire or tornado), it is hardto recall from memory all the items of value which means you will not be reimbursed for them.
- Review your insurance policies every year- this goes back to the insurance resolutions post earlier this month. Failing to do this can result in being over or under insured. Insurance needs change.