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Thanks to fellow S&S reader, Leah, for today’s post. Don’t fall for these insurance mindset tricks!

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Sage Advice on How to Avoid Your Insurer’s Dirty Tricks

Insurance is one of those areas of life we all love to hate. And it’s not surprising, really. It seems we pay into a vast array of different plans and either never get to use it, or don’t get the compensation we think we deserve when we make a claim.

Similarly, if you think you can get away without being insured, Murphy’s Law suggests you won’t for long! It’s almost guaranteed that you will have an accident or break something when you don’t have any coverage.

All of this causes a huge problem. Because many of us have a natural distrust of insurance companies, we tend to treat it with a little disdain.

But the reality is, you will be opening yourself up for major issues later on down the line. With this in mind, here are some of the things you need to avoid when taking out insurance policies – let’s take a closer look.

The ‘everything is fine’ mindset

Bad things happen every day, to the vast majority of the world’s population. You might have been lucky up until now, but the reality is that any event – even the ones you hear about on the news – could possibly happen to you next.

If you treat your insurance as an afterthought, you can expect the insurance company to do the same to you when the inevitable happens.

The ‘I’m covered’ mindset

It’s not enough to take out insurance coverage. You also need to know what’s in your policy.

For example, as you can see from the rather checkered past of Unum insurance claims, you won’t always receive disability benefits if you become unable to work after a disabling illness or injury.

It’s the same with simple household insurance. Every time you buy a new product you should be informing your insurers, or you may not get the coverage you need in the event something goes wrong.

The ‘my employer has insurance’ mindset

Everyone should be happy to have insurance from their employer, of course. But is it enough?

The reality is that you should never rely on your employer to give your family what you need in the event of a serious accident.

It’s vital that you have your own, separate plans in place – life insurance for those with a family to support, for example. You can never guarantee your family will be taken care of if the worst happens, for sure. But by taking out separate policies you will be increasing the chances of their financial security.

The ‘cheapest deal’ mindset

Everyone loves a great deal – but is it worth it when it comes to insurance?

The truth is that good coverage for a rock bottom price is rarer than hen’s teeth.

The ‘no small print’ mindset

Finally, make sure you read the small print.

Ignoring the small print is something we’re all guilty of. And while insurance policy documents are possibly the most boring thing to read on the planet, you need to go through it. All of it.

Failure to do so will result in huge disappointment – and possible financial loss – for you.