InsWeb.com (NASDAQ: INSW), a leading online insurance comparison provider, today released a list of 6 common insurance mistakes Americans should avoid during a job or career transition.
If you’re looking for work, going back to school or preparing to strike out on your own, avoiding these common pitfalls will help you save money and maintain a solid financial safety net.
Mistake #1: Reducing Your Home and Auto Insurance Coverage Levels
While reducing your coverage levels may save you money in the short run, this may be the worst time to take on more financial risk. Consider increasing your home and auto deductibles as an alternative. You’ll save money on your rates, but the risk of financial ruin may be far less. (Keep in mind you’ll owe more money out of pocket at the time you make a claim, but the lower rate may make it worth it.)
Mistake #2: Ignoring Alternatives to COBRA Maintaining health coverage via your former employer is not your only option. If you’re in good health, individual health insurance — also called “major medical” or “high-deductible” insurance — could cost considerably less overall. An individual policy is probably not your best bet if you or a family member require frequent care, but it may still be worth running the numbers.
Mistake #3: Not Comparing Rates from Multiple Insurers With every type of insurance, different insurance companies are going to look at you differently. All companies use different underwriting criteria to determine rates, and if you don’t shop around you’ll never know if you could be paying less. And remember, shopping for insurance isn’t like applying for a loan or other financial product — your job status won’t necessarily affect your chances of finding a lower rate.
Mistake #4: Neglecting to Tell Your Auto Insurance Company Your Commute Has Changed If your employment situation has changed, you may be driving fewer miles than you did when you purchased your current auto insurance policy. Talk to your current insurer and review the annual mileage you’re currently being rated for. If your new annual mileage is lower, you should save some money.
Mistake #5: Not Buying Term Life Insurance as Soon as Possible While an extra expense may be the last thing you need at this point, failing to address your life insurance needs could make a bad situation even worse if you were to pass away. Many families don’t realize how affordable term life insurance can be, and with the wide range of term lengths and coverage amounts available you may be surprised to find that you can fit some peace of mind into your budget even during trying times. Plus, you can easily cancel the policy or extend it to a longer term when your situation changes.
Mistake #6: Ignoring Your Credit Score Yes, in most states your credit score also impacts your insurance rates. This means that if your credit score begins to decline, you might also see an increase in your insurance costs. The best thing to do is to watch your credit score closely and do everything you can to keep it as high as possible. And if your credit does suffer, don’t assume all is lost. Insurance companies use proprietary methods to determine how much your credit impacts your rates, so you may find that shopping around and switching to another insurance provider will save you money.
To learn more about the different types of insurance options available and to find common-sense ways to reduce your premiums, visit the InsWeb Insurance Learning Center.
About InsWeb InsWeb Corporation (NASDAQ: INSW) owns and operates a network of leading insurance marketplace and education websites. Founded in 1995 and headquartered in Sacramento, California, InsWeb’s primary properties include InsWeb.com, InsuranceRates.com, LocalInsuranceAgents.com, and AgentInsider.com. InsWeb has invented multiple e-commerce and online insurance distribution technologies and owns the following patents: 6,898,597; 7,107,325; 7,389,246; 7,640,176 and 7,707,505.
Media Contact: Jonathon D. Tudor InsWeb Corporation (916) 853-3386 Email Contact
SOURCE: InsWeb Corporation