5 Common Mistakes to Avoid When Buying an Insurance Policy – Advice from an Insurance Broker in the Dominican Republic

Purchasing insurance—whether for your car, home, health, or life—is one of the most important steps in protecting your future. Yet many individuals, including expats and property owners in the Dominican Republic, make critical errors when selecting their policies. These mistakes can lead to denied claims, unexpected expenses, or even total lack of coverage when you need it most.

As a trusted insurance broker in the Dominican Republic, we’ve seen firsthand the consequences of these oversights. In this article, we’ll walk you through five common mistakes and how to avoid them when buying insurance.

1. Not Understanding What the Policy Covers (or Doesn’t)

Many people skip reading the fine print.

They assume that all insurance policies are more or less the same, but that couldn’t be further from the truth. Each plan has its own set of exclusions, limits, and deductibles. For instance, a basic property insurance plan might not cover damage from earthquakes or floods unless specifically added.

Tip: Always ask for a clear summary of coverage, and make sure your policy includes the risks that matter most in your location and lifestyle.

2. Choosing Price Over Value

It’s tempting to choose the cheapest premium, especially when comparing quotes. However, cheaper doesn’t always mean better. Often, low-cost policies offer limited protection, higher deductibles, or slower claims processing.

Tip: Focus on the cost-to-benefit ratio. Work with a broker who can explain why one policy might be a better long-term choice—even if it costs a bit more upfront.

3. Failing to Disclose Relevant Information

When applying for insurance, some people omit details thinking it will lower their premium. However, inaccurate or incomplete information can lead to claim denial or policy cancellation later on.

Tip: Always be honest when declaring health conditions, property modifications, or driving history. Transparency helps ensure you’re properly covered when it matters most.

4. Not Using a Licensed Insurance Broker

Many buyers go directly to an insurance company without realizing they have no one on their side if something goes wrong. An independent broker works for you—not the insurer—and can guide you through claims, renewals, and policy updates.

Tip: Choose a broker licensed and based in the Dominican Republic who understands the local market, laws, and risks—especially important for foreigners and expats.

5. Forgetting to Review and Update the Policy Regularly

Life changes—so should your insurance. Yet many people leave their policies untouched for years, only to find out that their coverage is outdated or insufficient.

Tip: Set a reminder to review your policy annually or after major life events (buying property, getting married, starting a business, etc.). Your broker should help with this.

Why Choose Hernández Peguero Insurance Brokers?

At Hernández Peguero, we specialize in helping expats, property owners, and residents in the Dominican Republic secure the right coverage with peace of mind. As independent brokers, we compare offers from the top insurers and help you understand every clause of your policy. Whether it’s health, auto, home, or life insurance—we’re here to protect what matters to you.

Ready to Get the Right Policy?

Avoid these five mistakes and partner with a broker who puts your interests first.

📞 Call or WhatsApp: +1 849-514-9838
📧 Email: info@hernandezpeguero.com
🌐 Visit: www.hernandezpeguero.com

Our team is ready to assist you in English or Spanish. Get personalized guidance, free quotes, and trusted support every step of the way.