If you have any form of insurance, you may have a false sense of security. You’ve paid the premium, so you’re safe, right?
Unfortunately, many Americans have underinsured coverage.
What Does Underinsured Mean?
Someone who is underinsured does not have a comprehensive insurance policy, and they don’t have the protections they need in every circumstance that could play out. They could also be underinsured if their out-of-pocket expenses are more than 10 percent of their income, or if their deductible is more than 5 percent of their income.
For example, a person might have liability-only auto insurance, but drive an expensive new car. This means if someone hits that expensive new car and doesn’t have their own auto insurance policy, the insured driver will be paying out of pocket for the damages.
Why Are So Many People Underinsured?
So how do so many people end up with underinsured coverage? This might occur when someone doesn’t read the fine print of their insurance contract. After all, it’s quite common to skim over contracts and sign on the dotted line without knowing what you’re really getting into. A person might easily overlook important parts of the policy and then find out they’re underinsured when it’s too late.
Tips to Avoid Being Underinsured
Luckily, it’s relatively easy to avoid being underinsured. All it takes is some extra effort and care in reading the details of your insurance policy. Follow these tips to avoid being underinsured:
Make sure you have a trusted insurance advisor
Read all contracts closely before committing to a policy
Avoid having only group life insurance
Make sure your insure your valuables
Check your liability coverage limits
Adjust your insurance if:
Your family grows
Your income changes
You or your spouse lose insurance
Get Complete Insurance Coverage Today
If you suspect you may be underinsured, contact Insurance Center Associates today. As a trusted name in insurance, we’re happy to help you get proper coverage so you’re protected no matter what life sends your way. Learn more about our wide range of insurance products today.