Insurance could be instrumental in safeguarding your finances in the event of an emergency. However, you should never end up paying more than you need to. Whether you are purchasing an insurance policy for the very first time or you have had insurance coverage for many years, you could easily keep insurance expenses under control simply by following a few don’ts or avoiding some of the commonest insurance errors.

You may feel delighted to save money. Shopping around trying to locate the best insurance coverage is a fantastic way of going about it. But just dropping vital coverage or reducing your coverage won’t be of any use in the long run. It would not reap any benefits just like a diet without any exercise regime. There is no point in concentrating on numbers and not focusing on results. The point is you should not put yourself at a risk of being inadequately insured. This would be exposing you to much higher bills in the case of any disaster. Here are some of the don’ts you need to keep in mind while buying home, auto, renters and flood insurance policies.

Don’t Buy Insurance without Doing Ample Research & Shopping Around

People often locate an insurance company and are happy with it. They do not bother to look any further for other insurance providers. You should never buy insurance without adequate research online. You must get free quotes from a number of insurance companies. You could limit your comparative analysis to only a few reputed providers yet you could find a remarkable difference in the premiums that may end up saving a substantial amount of money. If you are buying auto insurance, you should get free quotes from all the leading car insurance providers operating in the USA. This way you could save substantially on your premium.

Don’t Insure a Home as Per Real Estate Value

When you are buying home insurance, you should consider the actual cost of rebuilding rather than the real estate value of your home. When the real estate prices fall, some homeowners would think of reducing the insurance amount on their home. But they must realize that insurance has been designed for covering the cost of rebuilding and it has nothing to do with the actual sales price of your home. You must buy housing insurance that should be having adequate coverage for rebuilding your home, as well as, replacing your belongings and this has no relevance to the real estate market.

Don’t Choose Insurance Company on the Basis of Price Alone

Though it is vital to choose an insurance company with competitive prices, you must also focus on other factors while choosing your insurance provider. The insurance company should have a track record of being financially sound. Choose a company that has made a niche for itself in the insurance sector thanks to highest levels of customer service.

You must always consider checking the financial health of the company you have shortlisted using independent rating agencies. Ask your relatives and friends about their insurance providers and their experiences. Ultimately choose an insurance provider that responds to your requirements and handles claims with efficiency and fairness.

Don’t Drop Flood Insurance

Remember flooding is not included in your homeowner’s insurance policy or renters insurance policies. NFIP or the National Flood Insurance Program offers coverage along with a few private insurance firms. Do not forget that 25% of the floods occur in the so-called low-risk areas. Before buying a home, you must check out with the NFIP for determining if the selected property is located in the acknowledged flood zone. If your home is located in the designated flood zone, you must buy flood insurance.


You must follow the above-mentioned don’ts zealously to keep insurance expenses strictly under control. You must consider looking into multi-policy discounts. If you purchase a number of policies from the same insurer, you could get substantial savings.

Author's Bio: 

Isabella Rossellini is an insurance consultant working with . She is a specialist in home insurance. She loves to read and in her spare time indulges in blogging.