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Texas Department of Insurance
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How to avoid the most common insurance mistakes

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Avoid these big mistakes to save money and get the coverage you need.

Woman stacking coins
  1. Setting your deductible too high or too low

    In general, the higher the deductible, the lower the cost for the policy. When choosing a deductible, think about how much you can afford to pay if your property is damaged. Remember filing small claims may affect how much you pay for insurance later.

    Talk to your agent to find a good balance between premium and deductible amounts.

  2. Not having enough home or auto insurance

    If your house or car is damaged and you don’t have enough coverage, you’ll pay more of the repair costs.

    Also think about how much you need to replace the contents of your house, your jewelry, and other valuables. You can buy more coverage if you need it.

  3. Knowing when to drop your car’s comprehensive or gap coverage

    If your car is older and paid off, you can probably drop collision and comprehensive coverages. Comprehensive pays if your car is stolen or damaged by something other than an accident. Ask your agent if paying for the coverages is in your best interest.

    Gap insurance helps pay the difference between your car’s value and the amount you owe. You don’t need gap insurance if you owe less than what your car is worth.

  4. Not knowing about health care networks and referrals

    Many health plans use networks of doctors and hospitals. Except in emergencies, your plan will want you to only see these doctors and might not pay if you don’t. Some plans let you see other doctors, but you might have to pay more.

    Also know if you need a referral from your primary doctor to see a specialist or need a pre-approval from your plan for treatments. Getting referrals and approvals can help you avoid big bills.

  5. Not telling your family about your life insurance

    If you have a policy, tell your family and give them a copy. They’ll need to know the company name and policy number to file a claim.

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Last updated: 10/20/2021