The Top 5 Reasons Why People Are Ignorant About Their Insurance Coverage

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The Top 5 Reasons Why People Are Ignorant About Their Insurance Coverage

Are you ignorant about your insurance coverage?

C’mon, be honest. Do you have a clue?

If I asked you to tell me exactly how much coverage you have, for what, by whom and who your benefactors might be…would you know?

Truth be told, I am always amazed at how little people really know about their insurance policies.  More often than not, they know more detail about the latest Bachelorette series than they do about their coverage.

I think that in order for you to gain a sense of control and understanding of your insurance landscape, you first need to acknowledge why it is people are so ignorant in the first place.

So here are my top 5 reasons why most people are ignorant about their insurance coverage.

They are just plain scared

For a lot of people, insurance is a scary topic.  It often involves considerations relative to death, money, disability – these are really heavy notions and it’s easier, sometimes, just not to go there.

But the irony, of course, is that it’s arguably scarier not to have those discussions. By sifting through the scary stuff and making plans for the unknown, those possibilities become a lot less daunting.

They are confused

There is a lot of ‘jargon’ used in insurance policies.  Page after page of legalese can be very overwhelming and difficult to understand. It’s no wonder people are confused about their coverage.

But beyond the language and meaning, people are commonly confused about their insurance needs. They may think they need ‘x’, when really they need ‘y’. And the distance between those two points may be too confusing to contemplate.

And so they do nothing. They just assume they understand; they leave things ‘as is’ and they put their insurance policies on the figurative back burner.

It’s not a priority

Insurance is one of those things that you don’t know you need until you need it.

People think that they are exempt from those worst-case-scenarios. But they are not. And that is precisely why they need coverage.

To think that insurance isn’t a top priority is a defence mechanism. It’s not only important to be adequately covered, but you need to know what coverage you have and the details of those policies.

They defer

It’s important to have a knowledgable and skilled insurance broker. But you don’t want to defer entirely to the professional.

Take control of your policies.  Be responsible for your coverage. Don’t leave it entirely in someone else’s hands.

They assume

Sometimes people will be holding policies for years…decades even…without checking in with their broker. They assume that because they were assertive and informed when the signed on the dotted line that everything is copacedic.

Well, you know what happens when you assume….

Your turn

So, what do you think of these reasons? Do any of them resonate? Do you know about your coverage in a manner that makes you feel comfortable?

Share your thoughts and questions in the comment section below, and if you found this post helpful, tweet it and share it!