Biggest Insurance Mistakes You Can Ever Make

At one point or the other, we all make mistakes in life. Some, we correct and do the right thing but some – it's spoilt milk, we only regret and get to live with the consequences.


I know life happens, but at the same time, we have an opportunity to make choices, let’s be true to ourselves and make the right choices. One of such choices is getting it right when choosing an insurance service provider and type of insurance while avoiding the below major mistakes.


1. Getting the wrong insurance

know Insurance service providers in Kenya are very aggressive and convincing while at it. Yes, they sound very reputable and the best option but do not jump to conclusions. Take your time and do your homework, shop for an ideal insurer that meets your needs. Scan the document, look out for exclusions, limits and clauses that do not align with what you are looking for. Above all, look for a policy that fits your budget and will serve you right. 


2. Ignoring your insurance exclusions

You must have signed some documents when taking up your cover. Did you read it to the end? That document was a contract and like any other agreement, there are always dos and don’ts commonly known as exclusions in Insurance lingo. 

Exclusions are a list of circumstances in which your policy won't pay. If you're not careful, you'll be uninsured even when you think you're protected. So, it's always important to read your policy document or contract to the latter for you to know what the insurance won’t pay for. 


3. Insuring at the bare minimum

Yes, you want to save money and yes, your ideal type of cover may look expensive for now, but it's worth it. Avoid the temptation to go for the minimum available premium, it's not worth the risk of having inadequate protection for you, your family or your assets. 

4. Buying more insurance than you need

While going for the bare minimum is not an option, going for more than you can chew is also not advisable. One, avoid going for something that will strain your finances and secondly, avoid paying for something you may not need or use. Save the money or find a better use for it. 


5. Going for a higher deductible

You may opt for a plan with a higher deductible and a lower premium. That means incurring lower monthly or annual insurance costs. But when the deal is too sweet, think twice. 

For instance, you may choose a six-figure deductible on your car or home insurance monthly. You’ll be paying low premiums yes, but it also means you won’t be able to receive anything for property damage or loss under the six figures, like your work laptop for instance. 


Choose wisely.