7 Insurance Mistakes That Could Cost You Money
We get it: insurance isn’t exactly the most fun topic in the world.¹ But there are costly consequences if you don’t give insurance the attention it deserves. At Marble, we want to help you save money and manage your insurance effortlessly so that you’re protecting the things that are important to you —without spending tons of time and money. That's why we put together a list of the top insurance mistakes you need to avoid:
1. Not shopping around for insurance quotes
Comparison shopping is incredibly common when it comes to everyday household items, yet few Americans shop around for their insurance policies. We recommend getting at least three insurance quotes once a year and also whenever you experience a major life event, such as getting married or having a baby. Shopping around is the easiest way to ensure you’re not leaving money on the table every month.
2. Not asking for discounts or earning rewards
When’s the last time you picked up the phone and simply asked if there are additional discounts available? It usually only takes a few minutes of your time and can lead to a decent amount of savings, especially if you have a history of being a good customer.
Luckily, discounts aren’t the only way to save on insurance. It’s no secret that Marble rewards you for organizing your insurance policies into our seamless digital wallet. If you have to have insurance anyway, you might as well make some money off it.
3. Being uninsured or over-insured
Choosing your insurance policies is a delicate balancing act between making sure you’re insured enough, but not insuring so much that you’re wasting money on a high monthly premium. For example, if you have an old car worth just $500 and can afford to pay for a different car out-of-pocket, you probably don’t need comprehensive coverage.
4. Making a claim for every little thing
Insurance is there to protect you when something goes wrong, but that doesn’t mean you should make a claim for every blip you encounter. Here’s why: Filing a claim can affect your insurance rate and could impact you for several years. If something happens and it's inexpensive to fix, you’re likely better off paying out of pocket than involving your carrier.
5. Assuming your policy includes things like flood insurance
Before signing off a new policy, you should double check for any gaps in insurance and mitigate those immediately. For example, many people assume they are covered for flood damage under their standard homeowners policy, but it’s actually a separate product they would need to purchase. While homeowners insurance covers water damage if a pipe bursts, it will not cover water damage from a storm.
6. Not buying renters insurance
Renters insurance is relatively inexpensive as far as insurance products are concerned, yet only 37% of renters have purchased insurance. According to PolicyGenius, the average annual cost of renters insurance, which covers both your personal property and personal liability, is $180. Given its low cost and huge potential savings if something were to happen, renters insurance should be a no-brainer.
7. Not organizing your policies
In our experience, creating an organized financial life is the best way to set yourself up for success. Not only does disorganization come at a cost — the average American wastes almost one hour a day searching for things — but it can also waste valuable time if you’re in an emergency. We think Marble is an easy way to store all of your important insurance documents in one secure platform, but whatever your preferred organization method is will work!
¹ A non-exhaustive list of topics that are more fun to talk about than insurance: skydiving (by a lot); the latest Netflix original movie; even root canals.