A lot of times, people and companies tend to spend a lot of money on insurance without knowing that the insurance they’re paying for won’t help them too much when something happens. If you haven’t read your policy carefully, you could go on paying for your home insurance every year for decades, and when a flood or fire damages your home, you might just realize that the compensation that the contract offers you will be a lot lower than expected.
To avoid such issues, consider the following tips on how to avoid the most common car and home insurance mistakes:
- Avoid insuring your home for its real estate value. The coverage will have to help rebuild or repair your home in the event of a disaster, so it’s usually a better strategy to save money by raising your deductible instead, as it could help you save up to 25% on your premium payments.
- For car insurance, instead of only choosing the minimum legal amount for your premium – which can lead you to pay a lot more in case of an accident – consider dropping collision coverage if your car is older, and focus more on bodily injury protection coverage. Talk to APCO representatives regarding types of commercial auto insurance Colorado coverages that will work best for your business.
- In both car and home insurance, one of the biggest mistakes is to choose an insurance company based on the price alone. In the world of insurance, you really do get what you pay for, so consider carefully the insurer you choose, and make sure you check their track record and coverage, instead of just focusing on the price.