Common mistakes in insurance
Buying Insurance – It’s always a weird phase between “Am I getting scammed?” and “I know this is a necessity” especially buying insurance in Nigeria
Insurance agents probably have the sweetest mouths – it’s honestly a toss-up between them and Nigerian men (but we digress), so honestly, the feeling of mild confusion mixed with the sense of responsibility you’ll feel when you purchase insurance is valid.
You know you need it, but… Is it necessary? (Let’s repeat it, IT IS!)
While insurance is absolutely necessary, we still make some common mistakes when buying insurance. Because we want you to avoid these insurance mistakes, we have listed them below.
Not comparing multiple companies:
You just subscribed to a new insurance plan without comparing multiple companies, because of the interesting sales pitch the insurance agent gave you. That is one mistake you don’t want to make. It could be a regretful insurance mistake in the long run.
Just like how you would compare different vendors for an outfit or a car, the same goes when you’re purchasing insurance. Different companies will offer different prices for the same coverage you’re seeking – this is because data collected for calculating premiums may vary.
Not comparing multiple agents:
As with the first point, differentiating agents may save you in the long run because depending on the companies, these agents represent their premiums may vary. A good rule of thumb is to compare agents and do your research to make sure they license it and have an excellent reputation before we decide
Not understanding the policy:
Coverage and options are overwhelming. However, make sure you are asking agents questions, so you know what the terms mean. Finding out what type of coverage you have when you need to file a claim is not always a pleasant experience.
Not buying enough coverage:
Let’s face it; buying insurance is not a fun experience. Especially when you realise you are spending money to cover something that you hope doesn’t happen. Most of us would rather spend it on something else. However, because insurance is a financial safety net, coverage is not something one should skim on. We can’t predict the future, but we can protect ourselves and loved ones against some financial calamity.
Not updating your coverage:
Change is the only constant thing in life. As you go through life, changes will happen. You may get married, lose a loved one, move to a different house, upgrade your vehicle. As these changes occur, make sure you’re updating the policies attached to those changes.
Letting discounts expire:
Since insurance companies are usually looking to get more market share. From time to time, they may offer discounts on certain products. Make sure you build a relationship with your provider, so you are aware of these discounts.
You can create this relationship by signing up for a newsletter if they have one or adding them on your social media platforms. You can also be best friends with your insurance agent – that always works!
Not choosing a credible carrier:
Great service is something that every insurance company must-have. This usually comes into play when it’s time to make a claim.
Make sure you ask questions from other people that have used the company and specifically ask about their claim process. That should give you some insight into deciding on using their services.
Insurance is not the hottest gist in town.