10 Mistakes to Avoid When Buying Car Insurance
As a conscientious and smart driver, it's critical to have a decent car insurance policy. Shopping around for the best deal is something that everyone should do, but there are many mistakes that people make when buying car insurance. Ten of those mistakes are outlined below; learn them and avoid them at all costs!
- Not Getting Enough Coverage - Drivers often focus strictly on the bottom line when shopping for car insurance and are happy when that total is low. However, ample coverage is often traded in for that low price - and drivers end up without enough protection.
- Being Unfamiliar With A Policy - Once you've settled on a car insurance policy, learn it from top to bottom. Otherwise, you could go around assuming that various things are covered - when they aren't.
- Letting Your Credit Rating Slide - Many car insurance companies take drivers' credit ratings into account when preparing quotes. If you're going to be shopping for auto insurance soon, make sure that you're protecting your credit rating.
- Not Getting Everything In Writing - Just because you were quoted one number doesn't mean that you'll get billed that number. Before committing to an insurance policy, get every last detail in writing - including a detailed breakdown about what you're paying for.
- Not Disclosing All Prior Claims - Before giving you a quote, an insurance company will ask you disclose any previous claims you've had. Make sure you disclose them all; if more are discovered down the road, your rate could be bumped up.
- Financing Your Premium - Sure, monthly payments are convenient - but they also cost more. Instead of paying for your premium on a monthly basis, pay it in six-month increments. You'll save money in the long run.
- Not Disclosing All Drivers - Be completely straightforward and honest about how many drivers will be using the vehicles on your policy. Insurance companies have ways of finding out about unreported drivers, and you can be penalized with higher rates - or dropped altogether - if any are discovered.
- Buying The Cheapest Policy - Just because one policy is cheaper than another, doesn't mean that it's the right one. Shop based on price and coverage to ensure that you are adequately protected and that you aren't subjected to high deductibles and other issues.
- Not Getting Accident Forgiveness - Be sure to ask any company you request an auto insurance quote from whether or not they offer accident forgiveness. Under such a plan, your first accident won't increase your rate.
- Not Receiving All Of The Discounts That You Qualify For - Most car insurance companies offer discounts for things like being accident-free and for having anti-theft devices installed on a car. Ask for a complete list of the things they offer discounts for, and make sure that you get every single one that you are qualified for in order to get the best price.