5 Insurance Mistakes That Cost Americans Thousands Every Year
Avoid these common insurance pitfalls that drain your wallet. From under-insuring to missing discounts, here's what to watch out for.
5 Insurance Mistakes That Cost Americans Thousands Every Year
Most Americans set up their insurance once and never look at it again. That's a mistake that costs the average household $1,200+ per year in unnecessary premiums and coverage gaps.
Here are the five biggest insurance mistakes — and how to fix them.
1. Never Comparing Rates
The mistake: Staying with the same carrier year after year out of convenience.
The cost: Insurance companies often increase rates gradually. After 3-5 years, you could be paying 20-30% more than a new customer for the same coverage.
The fix: Compare rates at least once a year. It takes 2 minutes with Coverage Cove.
2. Being Under-Insured
The mistake: Choosing the cheapest possible coverage to save on premiums.
The cost: If you're in a serious accident with only state minimum liability ($25K property damage in many states), you'll pay the difference out of pocket. A typical car costs $30K-$50K — the gap can be devastating.
The fix: Carry at least 100/300/100 liability coverage. The premium difference is often less than $20/month.
3. Missing the Bundle Discount
The mistake: Having auto, home, and life insurance with three different companies.
The cost: You're leaving 15-25% on the table. Multi-policy discounts are the single biggest discount available.
The fix: Ask your carrier (or Coverage Cove) about bundling. The savings add up fast.
4. Not Reviewing Coverage After Life Changes
The mistake: Getting married, having a baby, buying a home, or getting a new job — and not updating your insurance.
The cost: You might be paying for coverage you don't need, or worse, you might not have enough coverage for your new situation.
The fix: Review your policies after any major life event. Coverage Cove agents can help.
5. Ignoring Your Credit Score
The mistake: Not realizing that your credit score affects your insurance rates (in most states).
The cost: Drivers with poor credit pay up to 71% more for auto insurance than those with excellent credit.
The fix: Work on improving your credit score. Even small improvements can lower your premiums.
Ready to fix these mistakes? Compare rates now and see how much you could be saving.