Common Mistakes That People Make When They Buy Insurance

2006-08-18

While insurance is a necessity for most people, there are a lot of mistakes that are commonly made by those who purchase insurance. At the very least, these mistakes can be costly, and if you don't have the proper coverage, you may find that the insurance is not useful when you need it the most. In this article I will go over a number of pitfalls that you will want to avoid when purchasing insurance. The first common mistake that is made by people who buy health insurance is allowing insurance companies to scare them into paying for their products or services.

For example, many insurance agents may try to get you to sign up for their health insurance by scaring you with stories of the costs involved with appendicitis or breaking your leg. However, what they don't tell you is that less than 5% of the population will get appendicitis, and the chances of you breaking your leg is low as long as you are not engaged in any physical activities that are risky like sports. When you pay for health insurance, you should never allow a company to scare you into getting it. Having said that, one of the biggest mistakes people make is not having any health or life insurance.

Because of the high cost of healthcare, getting hurt can not only weaken your ability to earn an income for your family, but you may find yourself in debt that will take years for you to pay off. If you have a family that is dependent on your ability to make money, it is critical for you to get life insurance.

In some situations, not having insurance can be a violation of the law. A good example of this is auto insurance. If you are driving without insurance, you are putting yourself in a perilous situation. If you get into an accident, you will be taken to jail when the police officer arrives to the scene and finds that you don't have insurance.

Read Part 2 of Common Mistakes That People Make When They Buy Insurance

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