Costly Insurance Mistakes

Costly Mistakes - Burns Hole in PocketInsurance is a subject that many people do not completely understand. If you own a home in California and drive a car you probably know that you need to carry California homeowner insurance and California auto insurance. But, do you know what kind of insurance to carry and how much you should carry?

The two biggest mistakes a California resident can make when it comes to insurance are not buying enough insurance and buying the wrong type of insurance. If someone tells you that insurance is insurance and all companies are basically the same, you should absolutely not listen to them. When shopping for automobile or homeowners insurance in California try to avoid the following costly mistakes.

Not Enough Insurance

Without doubt, the number one problem California residents face when it comes to any type of insurance is not having an adequate amount of coverage. Insurance is designed to help you get back to the level you were at before a loss occurred. It might be a house that burned to the ground or a car that was totaled in a bad accident. Family members and beneficiaries will be well taken care of if you had the foresight to buy enough life insurance.

Instead of trying to save a few dollars by buying only the minimum amount of California car insurance or California homeowner insurance, you can be much better protected with more coverage for not that much higher a monthly premium.

What Type of Insurance to Buy

When it comes to California auto insurance, you need much more than the state mandated 15/30/5 coverage. In today’s world, an auto accident can easily rack up $100,000 or more of bills. To protect yourself and your assets, a minimum of 100/300/100 coverage should be carried. Many people with more substantial estates should have even higher coverage.

In addition to liability coverage, most vehicles should also have comprehensive and collision, especially if the are worth more than a few thousand dollars.

Homeowners should also buy more than the minimum amounts required by law to protect themselves and their homes from lawsuits filed by anyone that may have been hurt on your property or any type of damage to your house.

Top Seven Costly Insurance Mistakes Made by Texas Consumers

Texas Consumers - Beware!Too often Texas consumers get in a hurry when it comes to purchasing auto and home insurance. The result can be any one or more of these top seven mistakes:

1. Getting too little insurance.

If you don’t have enough coverage you may end up paying more out of pocket than if you had a slightly better policy.

2. Getting too much insurance.

Determine the resale value of your car based on its model year age as well as it’s condition. Depending on these findings, as well as your ability to purchase another car should yours become totaled in a wreck, you may be able to get by with just liability.

3. Not comparison shopping.

Auto and home insurance rates do vary among companies. Take the time to get several quotes.

4. Not “bundling”.

You can “bundle” phone, cable, and internet services and you can also do the same thing with home and auto insurance. If possible, get both policies with the same company.

5. Not taking advantage of each and every discount the insurance company offers.

Insurance companies offer a lot of discounts; make sure you’re getting every one that you’re entitled to.

6. Not re-examining your policy every few years.

Things such as your age, not having an under-25 driver on your insurance, and good driving records can all add up to savings.

7. Not having insurance at all.

In many states, it’s now mandatory to have auto insurance and failure to do so can subject you to severe civil and criminal penalties. You may not be required to have home insurance, but how will you replace things lost due to fire, theft, or damage?