65. Did Your Car Insurance Go Up? Fix These 4 Coverage Mistakes

I’ve noticed that many people don’t fully understand their home and auto insurance coverage, often just relying on default options or what the agent recommends. I want to highlight four common mistakes I see: (1) Having low deductibles, which results in higher premiums for minor claims; (2) Low liability limits, which can expose you to significant financial risk in serious accidents; (3) Coverage mismatches, especially in home insurance, where the policy may not reflect the current replacement cost or include umbrella coverage for those with a higher net worth; and (4) Not shopping around for better rates every couple of years, as insurers tend to gradually raise premiums over time. The key takeaway is that insurance should be for covering major financial risks, not small, routine expenses. I recommend regularly reviewing and adjusting your coverage to make sure you’re getting the best protection and value.

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Key Takeaways:

• Many people don’t fully understand their home and auto insurance coverage and often rely on default options or agent recommendations.

• Having low deductibles can lead to higher premiums for minor claims, such as windshield repairs or small damages.

• Many people neglect to shop for better insurance rates regularly, leading to higher premiums over time as insurers tend to increase rates gradually.

• Insurance should be used to cover major financial risks (like a house burning down or a serious accident) rather than small, routine expenses (like a cracked windshield).

• Regularly reviewing your insurance policy ensures that your coverage, deductibles, and liability limits are appropriate for your current needs and financial situation.

Key Timestamps:

(00:00) - Common Insurance Mistakes

(00:51) - Mistake 1: Low Deductibles

(04:30) - Mistake 2: Low Liability Limits

(07:38) - Mistake 3: Coverage Not Matching Home Value

(08:48) - Mistake 4: Not Shopping Policies Regularly

(10:03) - Conclusion and Final Thoughts

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show, Car Insurance, Home Insurance

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More of Baskin Financial Planning:

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Questions or comments, drop me a note at: erik@baskinfp.com

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