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- Not updating your insurance needs. Consult with your insurance agent once a year, preferably in January when you begin to assess your tax situation.
- Setting your deductible too low. Insurance premiums drop dramatically when you raise the deductible. Check it out.
- Not taking advantage of group plans. Business and professional organizations to which you might belong frequently offer group health or disability coverage at substantially lower premiums than anything that’s available from an agent.
- Not shopping for the best cost. You comparison-shop for a car, so why not do it for insurance? Just because you’ve always dealt with one insurance company doesn’t mean your getting the best deal.
- Failure to have disability insurance. It’s three times more likely that you’ll be disabled before age 65 than it is that you’ll die. Disability insurance is particularly important for professionals and self-employed individuals.
- Not considering insurance as part of your personal financial planning. For example, life insurance can be used to generate interest income or to reduce estate taxes.
- Doing business with a disinterested insurance company agent. You’re much better off dealing with an independent agent who’ll shop around for the best coverage at the lowest cost.
- Buying insurance you don’t really need. Examples: life insurance for children, travel insurance that probably duplicates coverage you already have, collision insurance for an old car, and car rental insurance that might be included in your homeowner’s policy.