III urges consumers to prevent being underinsured
Offers tips avoid skimping in the wrong areas
The Insurance Information Institute (I.I.I.) recently offered up tips to consumers to help them start 2012 off the right way by avoiding costly insurance mistakes.
The start of a new year is indeed a time when consumers are often looking for ways to save money on monthly expenses.
But those same consumers need to be careful, the I.I.I. said, to avoid cutting costs on insurance expenses that then, in turn, can leave them vulnerable to costly situations that can arise due to be underinsured.
“There are simple steps you can take to cut the cost of your home and auto insurance while continuing to be financially protected against a catastrophe,” Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I., said in a statement.
One easy way to save money on insurance expenses, the I.I.I. said, is to consider inquiring about multi-policy discounts. Easy savings can often be had if multiple insurance policies are bought with the same insurer (e.g. auto insurance and life insurance).
In its report, the I.I.I. also offered up some common missteps to avoid when it comes to looking for ways to save money on insurance costs:
- Lowering home insurance costs by only insuring the real-estate value (as opposed to rebuilding costs). This leaves the door open for a bad situation if rebuilding needs to occur in the aftermath of a disaster.
- Only considering cost when choosing an insurance company. Customer service and reliability of the company should factor big.
- Opting out of getting flood insurance. This can leave a homeowner knee-deep in problems if a flood hits.
- Only purchasing the legally-required amount of auto insurance. This can leave a driver susceptible to big out-of-pocket expenses.
- Opting out of purchasing renters insurance. Renters insurance can provide both coverage of possessions and valuable liability coverage.