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7 ways you're being foolish with insurance

Michele Lerner

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Fixing foolish insurance mistakes
Fixing foolish insurance mistakes copyright Kellis/Shutterstock.com

Playing an April Fools' joke on a friend can be fun, but being foolish with your insurance can be costly. Skimping on your coverage can result in financial ruin, or at least a hefty bill that will part a fool (you) and his money.

Penny-pinching might be smart in some circumstances, but trying to save by reducing your insurance protection can be foolhardy, says Tom Bigoski, owner of the Thomas Bigoski Insurance Agency in Gainesville, Va.

"A foolish person will take low liability coverage and low deductibles," Bigoski says. "A smart person will get high liability coverage with a high deductible."

Whether you are purchasing car insurance, homeowners insurance, life insurance or disability insurance, leave off the dunce cap, and think before you make an expensive mistake.

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