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Insurance Mistakes Could Cost You (Fall 2012) << Back
 
Fear is an important motivator when it comes to buying insurance. We worry about what will happen to valuable assets such as our cars, homes or personal property if they are involved in a disaster, so we buy insurance to help us maintain our financial integrity if something should happen.  In spite of the fact that insurance is designed for this purpose, sometimes it doesn’t give us the outcome we expect. That's not because something is inherently wrong with the policy, but rather the result of human failure.
 
Here are some common mistakes that could end up costing you money:
 
Thinking you're saving money because you bought the cheapest policy you could find - Initially those low premiums will seem like a savings; but if coverage is not afforded by the policy or the cost of an accident ends up being more than your policy coverage limits, the rest of the expenses will be out of your own pocket. If other parties are involved, they are likely to sue you, and you could end up losing a large part of your personal assets.
 
Failing to pay your premiums on time or not at all - There could be a legitimate instance in which you don't pay on time. However, when you don't pay and your policy cancels, your insurance company will not cover you.  Whenever possible, set up automatic payments through your insurer to avoid disruption in coverage.
 
Making assumptions about what is covered - There are limitations to the coverage a homeowner's or auto policy will provide for certain items. You should never assume that all of your possessions are covered. Call our staff if you have any questions.  What we can do is add extra coverage to your policy with an endorsement, which gives you coverage and/or higher limits on these types of items.
 
Overlooking the importance of umbrella liability policies - These policies got their name because they protect you from a financial downpour.  Buying from the insurer you already have usually entitles you to a premium discount.  Umbrella policies are usually sold in increments of a million dollars. Generally you can expect to pay approximately $150 to $300 a year for the first million dollars of coverage depending on how many cars or homes you own.  Keep in mind that when determining your premium, your insurer may also take into consideration such factors as the number of traffic tickets, accidents or losses you've had over the past few years.
 
Failing to inform us about changes that could affect your coverage needs - If you've added on to your home, or purchased expensive jewelry, or bought a new car, you need to contact us to see if the policy you have still meets your needs. Your insurance professional at AHTKY can also find ways to help you save money on premiums that won't affect the quality of your coverage such as enrolling in a driver safety class, installing a home security system, increasing your deductibles or taking advantage of multi-policy or good student discounts.
 
 
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AHTKY Insurance Agency, LLC
1451 W. Artesia Blvd, Suite A, Gardena, California 90248
CA License: 0C46036