Shopping for auto insurance online can be a grueling task. Determining exactly what your auto insurance should cover and how much you should pay for it can be tricky and confusing.
Ultimately what you want is a policy with the maximum coverage for the minimum price. Avoiding costly mistakes can get you to that goal.
In this article, you’ll learn how to avoid costly mistakes made when shopping for car insurance.
Mistake #1: You Do Not Ask For Discounts
Most auto insurance companies provide their customers with a wide range of discounts, such as safe driver and membership. For this reason, you need to ask your insurance company about the discounts they have and apply for the one that you are eligible for.
For a full list of discounts check out: 8 Auto Insurance Discounts Worth Asking About in Connecticut
Mistake #2: You Do Not Combine Your Auto Insurance Coverage with Other Coverages
When you obtain more than one insurance coverage from the same insurance company, you may become eligible for discounts. For instance, if you have obtained homeowners insurance coverage from an insurance company, consider obtaining auto insurance coverage from them as well.
If you need to, you should move the insurance coverage you have with one insurance company to another insurance company. Doing that might be a hassle at first, but it will worth it in the end when you receive discounts and better and more comprehensive auto insurance coverage.
For more information on why its better to bundle check out: Does bundling your insurance make the most sense?
Mistake #3: You Do Not Tell the Insurance Company the Complete Truth about Your Driving Record
When you talk to an insurance company, they will ask you questions regarding your driving record. Make sure to disclose every little detail to them about your driving record. When you are dishonest to them about your driving record, the insurance company will increase your premiums because they will verify the information and details you provided to them about your driving record.
Since most insurance companies have access to ticket and driving record databases as well as out-of-state driving records, not being honest to them about your driving record will not be a wise thing to do, as they will find it out.
Mistake #4: You Lie to the Insurance Company about the Number of Miles You Drive Each Year
The number of miles you drive each year affects your insurance premium. It is crucial that you do not lie to the insurance company about the number of miles you drive each year. Your insurance company may verify this information and when they find out that you lied to them, they will increase your insurance premium.
Mistake #5: You Do Not Consider the Amount of Deductible You Have to Pay and How You Would Pay It
Most people looking to obtain auto insurance will lean towards obtaining auto insurance with the highest deductible to decrease the amount of premium they have to pay each month. In doing so, the insurance company automatically assumes that you do have the money to pay the deductible in the event you file a claim.
If you do not have the money to pay for the deductible and you only opted for this option so you could pay a lower premium, you will find yourself either taking out a debt or defer repairing your vehicle in the event the need to file a claim arises.
Mistake #6: Do Not Ask the Insurance Company About the Amount of Auto Insurance Coverage You Require
You neglect asking the insurance company the amount of auto insurance coverage you require. If you have taken out a loan on your car for instance, your insurance company may require you to take out at least minimum insurance coverage on your car.
To find out the minimum insurance coverage on your car that you need to take out, you need to look at the lending paperwork or in your promissory. If you fail to obtain the specified amount of auto insurance coverage, your insurance company may take it out on your behalf and require you to pay for it. In most cases, the cost of obtaining this auto insurance coverage is normally higher than what a person could obtain on their own.
Mistake #7: You Automatically Renew Your Existing Auto Insurance Coverage
Most people want to remain in their comfort zone by renewing their existing auto insurance coverage. Be sure to get out of your comfort zone and find another insurance company to obtain auto insurance coverage from.
The longer you remain with an auto insurance company, the less money you may save. The reason for this is that overtime, the insurance company may have increased the yearly premiums on older auto insurance policies due to price optimization.
Therefore, the best thing to do at this point would be to research for auto insurance, but if you do not want to leave your current insurance company, you can obtain a lower quote from another insurance company and show it to them. Most likely, your insurance company will not want you to switch to another insurance company, resulting in them lowering your auto insurance premium.
Mistake #8: You Do Not Know the Amount of Auto Insurance Coverage You Need
If you are unsure about the amount of auto insurance coverage you need, you may end up getting either too much or too little insurance coverage. If you are switching to another auto insurance company, adding a new one to your existing plan, or moving to another state, it’s crucial to look at all the coverage options along with the minimum auto insurance coverage requirements of the state.
Do not make the common mistake of buying too much auto insurance, especially if you are a new customer. You should also consider other types of auto insurance coverages, such as pay per mile insurance coverage for people who do not drive their car often to save money.
When shopping for auto insurance coverage, keep these points in mind.
Digital Marketing Director