Acquiring insurance is a crucial step to protect your loved ones, finances, property, and health.

Parsing through the bevy of options, though, can be a time investment. On top of that, the details of certain plans can leave you wondering how exactly to select the coverage you need and choose between competing insurers.

Next time you need to shop for any type of insurance, including home, auto, medical, life, and other policies, review this guide to common mistakes you should avoid to help sidestep any pitfalls and find suitable coverage without overpaying.

Accepting the first plan you find

Different insurers are likely to offer different rates for the same level of coverage, so it’s essential to shop around before you select a plan. You should always seek out at least three different quotes. If you’re shopping independently rather than through a broker, compare prices, sift through customer reviews, check out each company’s Better Business Bureau rankings, and consider requesting a referral from a loved one.

Once you decide on an appropriate insurer, don’t simply accept the first policy quoted to you. Instead, assess whether you need to make adjustments or customize your plan to get ideal protection. For example, if you receive a tempting quote for a life insurance policy, make sure to review the plan’s death benefit amount before enrolling. While $100,000 is a common offering, this may be insufficient to compensate for funeral costs, lost wages, and ongoing financial needs for your loved ones after you pass. Some life insurance companies recommend covering seven to ten times your current annual salary. Taking the time to sift through your options may make enrolling more tedious, but precaution can serve you in the future when it’s time to file a claim.

Shopping cheap

As when shopping for many goods and services, seeking good pricing is only reasonable, but shopping for the lowest price may be to your detriment. Take, for instance, how price affects health insurance policies. When you receive an initial quote for a plan or scroll through offerings on an insurer’s website, you may notice that they each offer different patient costs, including the coinsurance, deductible, and copays for primary, specialty, and hospital care. These variables tend to increase as the monthly premium cost decreases.

So while a health care plan may seem cheap, this may mean shouldering more costs when you visit your doctor. A plan with a high deductible, for example, may only be suitable for you if you’re in excellent health and do not intend to seek out health care very often. If you plan on seeing a doctor regularly, examine how raising your premium may reduce your costs per claim and ultimately serve you in the long term.

Opting for cheap insurance may also mean receiving insufficient coverage and therefore losing out on compensation for losses. The Ascent offers the perfect example: “If a homeowner only buys $100,000 in dwelling coverage and their house is worth $200,000, they wouldn’t get back the full amount of money needed to rebuild their home if it was destroyed.” While you will likely pay a higher premium for an insurance plan with a greater coverage limit, it

can pay you back dividends in compensation should you need to file a claim for damages.

Not checking for discounts

While shopping cheap can cause you trouble in the future, you by no means need to put yourself in debt to buy insurance. Reflect on your coverage needs and budget as you compare plans, and consider other routes to reduce your rates. For one, actively seek out discounts.

Are you a nonsmoker? Do you have no history of serious health complications? Are you willing to enroll in autopay for your premium costs? These and many other qualifications may earn you some satisfying discounts for various insurance plans. Auto insurers offer discounts for driving a vehicle with safety features such as antilock brakes, while home insurers may reduce your premium costs if you recently installed a new roof. There are surprising ways to save on insurance if you’re willing to hunt them down.

Ignoring the policy exclusions

Insurers may exclude certain features from your coverage, some of which you may assume are in place. For instance, home insurance policies often exclude flood protection, even if you live in a flood-prone region. Meanwhile, auto insurance may not cover vandalism if you only have basic collision coverage.

To avoid any surprises when you attempt to file a claim down the road, go over what a given policy includes, and then tack on any additional coverage areas that are of concern to you. Some plans offer simple tools for configuring your insurance plan online. Naturally, these additions will cost you more, but weigh what you can afford now alongside what may save you money in the future.

Shopping alone

Needless to say, insurance is intricate. These policies are riddled with jargon that shoppers may struggle to comprehend without investing significant time in research. What’s the difference between comprehensive and gap auto coverage, and which type do you need now? What’s the difference between liability and medical payments coverage, and which is relevant when a nonresident is injured in your home?

Working with an insurance broker could be the safest way to shop for virtually any type of insurance. They can walk you through what’s included and excluded in a given policy, recommend a coverage level for your needs and budget, and answer any general questions you may have throughout the process. Going it alone may seem faster, but unless you plan on reading dozens of pages of policy documents, reviewing plans with a broker may be the best way to avoid any unexpected mistakes. Once you select a plan with their assistance, you can walk away with peace of mind that you, your loved ones, your property, and your health have sufficient protection.