Common Insurance Mistakes and How to Avoid Them

Insurance is one of the most important financial tools you’ll ever use. It protects your health, property, income, and loved ones. But many people unknowingly make mistakes when buying or managing insurance—and these mistakes can be costly.

At Two Gates Insurance Broker, our mission is to guide you with clarity and confidence. Here are some of the most common insurance mistakes we see—and how you can avoid them:

1. Not Having Enough Coverage

Many people choose the cheapest option without understanding what it covers—or what it doesn’t. Whether it’s life, health, car, or home insurance, too little coverage can leave you exposed when you need it most.

How to Avoid It:
Work with a trusted broker to assess your actual risks and choose a policy that balances affordability with adequate protection.

2. Failing to Review Your Policy Annually

Life changes—marriage, children, a new job, or starting a business. If you don’t update your insurance regularly, you might be underinsured or paying for things you no longer need.

How to Avoid It:
Set a reminder to review your insurance policies once a year with a professional.

3. Ignoring Policy Exclusions and Fine Print

Many people don’t realize that certain situations or damages are not covered until it’s too late.

How to Avoid It:
Always ask for a clear explanation of exclusions and limitations. Don’t be afraid to ask questions!

4. Choosing the Wrong Deductible

Some choose a low deductible and end up with higher premiums they can’t afford. Others choose a high deductible without a savings buffer to cover out-of-pocket costs.

How to Avoid It:
Choose a deductible based on your budget and health or lifestyle risks.

5. Missing Premium Payments

Late or missed payments can lead to policy cancellation, which means losing your coverage just when you need it most.

How to Avoid It:
Set up automatic payments or calendar reminders to stay on track.

6. Overlapping or Duplicate Policies

Some people buy multiple policies that cover the same thing, wasting money on overlap—especially in health, life, or travel insurance.

How to Avoid It:
Have your broker review all your policies together to ensure you're not doubling up unnecessarily.

Final Thought

Insurance isn’t just a monthly bill—it’s peace of mind. By avoiding these common mistakes, you protect your finances, your family, and your future.