Insurance traps to steer clear of
Buying car and home insurance is easier than ever. Make one call or go online and you’re sorted… Or are you?
The thing is, just because insurance is at the touch of our fingertips, it's possible to make the wrong decision in a moment of haste.
Here are some pitfalls to avoid when it comes to insurance: Info by KingPrice
Cheaper isn’t always better
When shopping around for car insurance for the first time, it's tempting to pick the cheapest cover on the block. But paying less for the time being, can actually lead to having to fork over thousands later. How does this work? Well, let's say you pick third party cover (which only covers other people's damages in case of an accident).
You’ll enjoy a lower premium every month, but if you end up in an accident, you’ll have to cover your own damages yourself. The cost of fixing accident damage or replacing your car can easily be way more than what you would have saved by not taking comprehensive cover.
Aiming too high
So here's the deal: If you find yourself in a situation where you have to claim for damage to your car, you have to pay your insurer an excess amount. If you don't pay this amount, your claim won't be paid out. Not fun, right?
That's why you need to pick a reasonable excess amount. Because, while a sky-high excess means your premium is lower, you'll still be left stranded if you can’t scrape the excess amount together when you need to claim.
It’s in the details
Once you’ve signed on the dotted line and bought insurance, you get a little thing called a policy document. Basically, it’s a breakdown of what you're paying for. And if you don’t read it, not only do you risk being under-insured, you also end up paying a monthly premium with no idea why.
So knuckle down and read what your hard-earned money’s going towards. Better yet, insure with the king of price and get a policy document in everyday English (oh, and it’s entertaining to boot).
Keep your insurer posted
Life can be quite the rollercoaster. Every day something changes, however big or small… And the same goes for the valuables in your home. You might have received a movie-screen-size TV for your birthday or upgraded your student futon to a big fancy leather lounge suite, and your insurer needs to know about these high-value items that affect the overall sum you’re insured for.
Don't let the excitement of new toys distract you from the important stuff like updating your insurance. If you don't update your policy, you’ll be under-insured and left to cover any extra expenses on your own. Update your home insurance at least once a year to make sure everything’s covered for its current replacement value.
The second mouse gets the cheese
The early bird gets the worm, right? But the second mouse gets the cheese. Especially when it comes to getting the right insurance for your needs. Simply put, you’re not very likely to find the best deal the first time around. You need to take some time, compare prices and do your research.