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. Obviously, if this is not done, you could be assuming that various items are covered when, in fact, 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 - Even if you are verbally quoted an amount, it doesn't mean that you'll actually get billed that amount. Never commit to an insurance policy without getting every last detail in writing - including a detailed breakdown of 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. Any insurance company can find out if there are unreported drivers, and you will be affected with a higher rate - 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 anti-theft devices being installed on the 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.