5 Biggest Mistakes to Avoid When Purchasing InsuranceUncategorizedMay 15, 2014 Choosing low deductibles Low deductibles may seem appealing but you often pay higher insurance premiums. Also, with low deductibles you may be encouraged to make small claims losing out your claims free discount. Save extra money in your emergency funds to cover out of pocket expenses by increasing your deductibles and saving on your premiums. Forgetting to ask about discounts For Home and Auto Policies there are usually a hand full of discounts that you may qualify for that you may not know about. Always remember to ask your insurance broker about discounts. Replacement Cost vs. Actual Cash Value Insuring based on replacement cost will make sure that the cost of replacing your property will be covered and does not include depreciation. Insuring based on actual cash value will only insure that you receive cash on a claim based on how much the property is worth after depreciation. Buying based on premium vs. coverage Everyone is looking for cheap insurance but there is no such thing. Some companies may offer lower limits and less coverage to significantly lower the premiums. Always compare the overall limits and coverage to ensure you are covered in the event of a loss. Not combining home and auto Policies You should always insure your home and auto policies when you can. Insurance companies like to give loyalty discounts when you place multiple policies with them. There can be savings of up to 35%