Avoid These 10 Mistakes When Buying Auto Insurance

Avoid These 10 Mistakes When Buying Auto Insurance

One of the biggest lapses you can make as a car owner is not getting car insurance. However, it is important to avoid buying the first insurance policy you find. As purchasing a car is a huge decision, you should avoid leaving it unprotected, and getting auto insurance also helps you avoid hefty fines. Before getting the car insured, you should do your research, find the best provider, and avoid the following mistakes.

Not comparing policies
You should get quotes for multiple auto insurance policies offered by various providers. If you don’t compare the premium amount and coverage, you might end up getting an expensive policy with inadequate coverage. So, exploring all options is a crucial measure for getting a good deal. It is also important to analyze the benefits and costs and avoid making a decision until you have checked out multiple policies.

Not updating the policy
One of the most common mistakes car owners make is forgetting to update their auto insurance policy. For instance, if you don’t add your teenage driver to the policy and if your child continues to drive the car, you might have to face legal consequences in the form of penalties or trouble seeking insurance money. So, it is always a good idea to ensure timely updates to the insurance policy.

Not knowing the coverage you need
Vehicles must have a minimum insurance coverage stipulated by the authorities, but you don’t have to get just the minimum coverage. To get the best coverage, you should consider your unique protection needs, which are influenced by factors like:

  • Price of the vehicle
  • Type and model of the vehicle
  • Regular usage and driver’s experience behind the wheel
  • Weather conditions of the area of residence

As full coverage is quite expensive, you should look for providers that offer affordable yet suitable plans. If you are unsure about the coverage required, consult an insurance agent to help pick the best plan.

Lying on the application
While filling out an insurance application, you should avoid missing or manipulating your personal details. If you are not truthful in the form, the insurance company can deny claims in the future. The two areas where most people tend to give false information are:

Listing young drivers on the policy
Details regarding how the vehicle is being used

Choosing a minimal-coverage plan
The main purpose of buying auto insurance is to get monetary assistance in an unforeseen event. But with minimal policy coverage, you might be able to meet part of the costs, say legal expenses, but you won’t get adequate damage cover. If the insured car collides with another vehicle car, you may have to pay for damages out of pocket. To avoid this, consider choosing a comprehensive plan which may be expensive but is far more practical.

Not looking for discounts
Did you know that even insurance companies offer discounts to policyholders? You can qualify for discounts in the following cases:

  • If you get a policy like home or life insurance from the same insurance company
  • When you only use the vehicle seasonally
  • You use a telematic device to record the vehicle’s usage
  • Setting up automatic withdrawal for your insurance premium
  • When your vehicle has safety features like lane assist

Not checking reviews and ratings
Not all popular insurance companies would offer good services or be entirely reliable. Some will offer good rates, but they might have lousy customer service. Before you finalize an auto insurance company, you should check out the ranking, reviews, and ratings for the best agencies and figure out which works best for you.

Overlooking online insurance companies
You can also make the most of online insurance companies that help you save money. You can check out various traditional insurance companies’ websites, get quotes, and compare them. When you go for online car insurance, be sure to give accurate documents. Here, you may not get an agent to double-check the forms. So, online options might be feasible, but you need to be cautious and proactive while applying for auto insurance online.

Getting excessive coverage
You might end up getting unnecessary coverage with an expensive policy. If you have an older vehicle, an expensive plan or full coverage may not be the best idea. You might get a policy where insurers have included add-ons like towing and roadside assistance. Many new cars already come with roadside assistance coverage, so it is better to know the warranty coverage you have and the additional coverage you need to avoid paying twice for the same service.

Sticking to one provider
Many policyholders tend to pay their auto insurance bill when it is due without giving it a second thought. If you wish to save money, renewal time is the best to look for better plans. You may figure out that you are getting a better deal somewhere else, or you might be overpaying because you have been with the same company for a long time. At the time of policy renewal, you can look up all options online and request a quote for the same coverage from different companies. As you already know what insurance plan you need, getting quotes online will be easier. If you are happy with the existing company, but find cheaper premiums for a similar policy elsewhere, consider talking to the agent and see if they beat the price.

Buying auto insurance might be an extensive process, but it is a crucial step to becoming a car owner. After doing your research and shortlisting suitable providers, you should ensure you are getting maximum coverage for the minimum price. Some policies are limited to specific types of cars and liabilities, so consult an expert to ensure you are getting the most out of the policy.