Insurance News

The world of insurance can seem complicated at times, and it’s understandably easy to get confused with the full range of cover available without guided help.

Common Insurance mistakes and how to avoid them

March 2021


The world of insurance can seem complicated at times, and it’s understandably easy to get confused with the full range of cover available without guided help.

Once you've obtained the right policy, there are a number of common but avoidable mistakes that could lead to a claim being unsuccessful.

Here are some examples that you should bear in mind to safeguard your personal and commercial interests.

Home insurance

One of the worst mistakes a homeowner can make happens before an incident even occurs; failing to read your insurance policy carefully can cause serious problems and leave you vulnerable when you need to make a future claim.

Where you're unclear of the policy limitations and specifications, please speak with your usual Baxters contact.

Likewise, one of the biggest errors in judgement we see is failing to lock all windows and doors when exiting the property, or failing to use a home alarm system when it has been included within the initial insurance quote and cover.

Opportunistic burglaries can happen at any time, so even if you're going somewhere close by, you need to make sure your home is secure. 

Business insurance

A common issue business owners can run into is all to do with their business description not being accurate enough.

It is important to ensure the insurers fully understand your business activities and the business description.

Missing out key information in your business description can lead to all sorts of problems. Lack of detail often means an insurer can’t fully understand your business and can make the claim process difficult.

Estimations and guesswork also have a huge impact on the success of any future claim.

Six out of ten (62%) cyber insurance policyholders have reported that their premiums are based on averages and other unknown factors, rather than an accurate analysis of their own needs.*

This leaves them vulnerable should a cybercrime attack actually happen.

Car or fleet insurance

Not updating information can trip you up. This includes changes to the vehicle, changes of address, employment or factors related to the named driver(s).

As well as keeping your policy provider up-to-date, it's of utmost importance that only those covered to drive are permitted to do so. It is also imperative you only drive the vehicle for the purposes allowed under the insurance policy.

Tens of thousands of pounds in insurance claims are lost each year from vehicle owners allowing uninsured drivers behind the wheel or when using a vehicle for wrong purposes. For instance using a car for business purposes when it is only covered for Social, Domestic and Pleasure (SDP).

How we can help

Struggling to understand if your insurance plans are right for you?

Speak with a dedicated member of our team now and get the insurance clarity you’re looking for.

*GOV.UK