Common Insurance Mistakes

Purchasing Insurance- There is usually a strange period between that and “Am I being scammed?” Especially when buying insurance in Nigeria, “I know this is a necessity”

Since insurance agents undoubtedly have the nicest mouths (it’s a tie between them and Nigerian men, but we’re getting off topic), it’s reasonable to feel a mixture of responsibility and mild perplexity when you buy insurance.

You are aware of your need, but Is it required? (Repeat after me: IT IS!)

We still make several typical blunders while buying insurance, despite the fact that it is extremely important. We’ve listed these insurance blunders below because we want you to avoid them.

1. Not comparing different companies:

Because of the engaging sales pitch the insurance salesperson provided you, you just signed up for a new insurance plan without comparing multiple companies. You definitely don’t want to make that error. In the long run, it can turn out to be a costly insurance oversight.

When buying insurance, you should compare several providers in the same way that you would when buying clothing or a car. The identical coverage you’re looking for will be offered by several companies at various prices because the data used to determine premiums may not be consistent.

2. Not comparing multiple agents:

Comparing agents can help you save money in the long run because the premiums these agents represent can vary depending on the companies, similar to the first reason. Comparing agents and doing your homework to ensure they are licensed and have a stellar reputation before making a decision is a smart rule of thumb.

3. Not understanding the policy:

The variety and coverage are staggering. However, be sure to elicit definitions from the agents by asking them questions. When you need to make a claim, finding out what kind of coverage you have is not usually a pleasant task.

4. Buying insufficient coverage

Buying insurance is not enjoyable, let’s face it. Particularly when you realize that you are paying money to cover an event that you are hoping never occurs. The majority of us would choose to use it for something else. However, as insurance serves as a safety net for finances, one should not skimp on coverage. Although we are unable to foretell the future, we may safeguard our loved ones and ourselves against some financial disasters.

5. Not maintaining updated coverage

The only thing that is permanent in life is change. You will experience changes as you travel through life. You might upgrade your vehicle, move to a new home, get married, lose a loved one, or move. Make sure you’re updating the policies related to these changes as they take place.

6. Allowing discounts to run out:

Considering that insurance companies frequently strive to increase their market share. They might give discounts on particular products from time to time. Establishing a relationship with your supplier will help you learn about these reductions.

In addition

If they have a newsletter, you can subscribe to it and start a relationship with them by adding them to your social media networks. Your insurance agent and you can become the best of friends—it always works!

7. Not choosing a credible carrier:

Every insurance firm needs to provide excellent service. When it’s time to make a claim, this typically comes into play.

Ask detailed questions regarding the company’s claim procedure from customers who have utilized the business. That ought to help you make a decision about hiring their services.

Conclusion

The newest trend in town is not insurance.

However, it is crucial to feel at ease knowing that your assets are protected. Maintaining the validity of your insurance coverage is essential for a speedy claim settlement procedure.