While it might seem tempting to delay buying insurance, doing so could leave you exposed to financial risks. Insurance is designed to help protect you from unexpected losses, so getting coverage sooner rather than later is usually the better approach.

Insurance companies often offer a discount for paying your premium in full for the year, rather than paying monthly.

When applying for insurance, always provide accurate and honest information. Misleading or inaccurate information can lead to a denial of coverage or even policy cancellation.

It’s just as important to avoid overpaying for unnecessary coverage as it is to ensure you have adequate protection.

Before purchasing an insurance policy, understand how the insurer handles claims. A company with an easy, responsive claims process can make a huge difference when you need them most.

Many insurers offer discounts that can lower your premiums. It’s worth asking about available discounts to make sure you’re getting the best deal.

Your deductible (the amount you pay out-of-pocket before your insurance kicks in) and policy limits (the maximum payout your policy will cover) have a significant impact on your premiums and your coverage.

One common mistake people make is underinsuring, where they opt for cheaper premiums but don’t have enough coverage when a claim is made.

Life changes—whether it’s getting married, buying a house, having a child, or starting a business. Regularly review your policies to ensure your coverage reflects your current needs.

The financial stability of the insurer is crucial—if the company faces financial trouble, it may struggle to pay out claims when needed.