Day: December 14, 2022

Many times, business owners rush to obtain insurance out of obligation or financial necessity, and as a result, they fall into the various traps that insurance policies can establish. We have listed three common pitfalls that you will encounter when buying business insurance.

First and foremost, it is normal to think about insurance in order to have protection for many elements of our lives. For instance, auto insurance to protect you from a collision on the way to work, home insurance to protect your house from damage and theft, and life insurance to provide for your family. But, hidden behind the needs that we all have are some dark secrets that insurance companies are not willing to reveal.

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Expensive premiums on your car insurance

Why do insurance companies always ask you to pay a very expensive premium for what they offer? Not every insurer provides the same service, and each insurance company has a very distinct target audience.

So, when your premiums seem to go through the roof for no reason, it could simply mean that you are not your insurer’s target audience. Being loyal to your insurance provider is only effective when you are exactly the type of customer that they want to serve. In the meantime, it is a good idea to shop around for an insurer whose policy matches your needs and your budget.

Other important factors that can affect the price of your auto insurance premiums:

• A sudden change of address, as some locations may be deemed less secure for car owners, and therefore, your insurance will increase premiums.

• Adding your teen to the insurance policy.

• Increased mileage or cross-state travel.

• A history of accidents or insurance claims.

Ineffective home insurance cover

The main problem when it comes to finding the right insurance for your home is that you need to understand the potential risks that can threaten your property. If you don’t have good insurance, you could pay for a lot of cover that won’t protect you when you need it.

These are the most common problems that people report when trying to find the best home insurance policy:

• Not understanding which DIY work is policy authorized, and cause damage accidentally that is outside the scope of the policy.

• Belongings of high-value are not covered by home insurance.

• They have been forced to delay home improvement works to keep the cost of the home insurance policy low.

• They didn’t know that some events, such as natural disasters, required additional purchases for adequate protection.

Inadequate life insurance

Life insurance acts as a shield in the event of your death. For business owners, life insurance coverage is especially important as it will help replace your income and continue to support your family. But it can be tough to make the right decision when choosing your policy:

• Not knowing the difference between a whole life policy and a term life policy and how they affect your family.

• Choosing an unnecessarily high amount of coverage on accident, meaning you pay higher premiums for an amount your family may never need.

• Not adjusting the policy coverage to reflect your financial situation, such as standing debts.

• Postponing purchasing life insurance because it is “only for old people”.

Finding insurance coverage that suits your needs is tricky, because many business owners have a lot of assets that need to be protected, including their property, their income and the value of their vehicles. Insurance advisers like those at Engarde Financial Group in Pittsburg can offer you the right advice and help you choose the right policy for your home or business needs.