Columbus, OH (PressExposure) May 06, 2009 -- Whether purchasing a dream car, dream home, moving into that amazing loft in the city, or just changing jobs, the same dilemma is presented each time: How much insurance should be purchased? Too many consumers are prone to mistakenly buying too little insurance or much too much insurance. And when youâve finally built up the amount of savings needed to make that big purchase, erring on the side of overinsuring is preferable to underinsuring, right?
Wrong. According to a recently released article at Insuranceagents.com, both are mistakes a consumer doesnât want to make. Overinsuring a home or car is throwing money down the drain. Consumers must know just what kind of coverage they canât do without, as well as what kinds of coverage are unnecessary and least likely. In tough economic times, the dollars saved on the hiked premiums could make all he difference in the world. Thereâs no better time than the present to learn how to manage the risks when it comes to buying insurance.
âWith good reason consumers pay close attention to their insurance coverage, although over-insuring becomes the problem because they are not thinking about the risks of going overboard on coverage,â according to the Insuranceagents.com article, Managing Risk and Purchasing Insurance. âEvaluating individual insurance needs is all about making smart decisions that are not related to the benefits of purchasing high risk insurance. In the long run, consumers end up paying too much for insurance when they do not have to.â
According to the Insuranceagents.com article, many consumers make two very common mistakes when it comes to buying insurance. One of the most common mistakes a consumer can make is trying to insure everything they own instead of finding an alternate solution to coverage. Another common mistake a consumer can make is falsely believing that âfull coverageâ always applies to every little detail relating to the property, car, etc. (depending on the kind of policy).
âAs an example, if a homeowner owns a number of valuables such as jewelry, collectibles, etc., instead of purchasing more insurance to cover the valuables in case of a burglary, perhaps purchasing a safe would be the better decision,â suggests the Insuranceagents.com article.