Car Insurance Oversights to Avoid

Car Insurance Oversights to Avoid Car insurance can be a sticky subject. Most times people dislike having to pay for a service they may or may not use. There are so many misconceptions about auto insurance, that it clouds your judgment and influences your decisions when buying insurance. Here are 4 rookie mistakes to avoid when buying your policy.

Mistake 1: Buying coverage based on the minimum state requirement rather than considering your needs and requirements.

While it is important to meet the state’s coverage requirements, it’s more important to make sure the coverage you choose adequately protects you, should you ever need it. Keep in mind that while it’s important to meet your state’s minimum requirements, choosing minimum coverage could leave you with additional expenses that you might not be able to afford should you ever have to make a claim. Choose a higher limit if you think you might not be able to pay for damages out of your pocket. Choose your coverage wisely. You’ll be glad to you did.

Mistake 2: Buying the cheapest policy, rather than giving a thought to what you can get for the price you pay

It’s always a good idea to get multiple quotes from at least 3 different vehicle insurance companies, true. But if you decide to go ahead with the cheapest quote, you might be making a mistake. Think about it- yes, it’s great to get a cheap deal. Who doesn’t like to save money! But car insurance is not just about finding the cheapest deal. There’s so much more to consider. Do they offer 24-hour claims service? How prompt are they with following up claims? Is their service hassle-free? Do they pay for original manufacturer parts? Sometimes, you might have to pay a little extra, but for the service you get, it might well be worth the extra money, especially right after a stressful accident.

Mistake 3: Lying about your driving history on your car insurance application

Honesty is always the best policy. Especially when it comes to buying car insurance. Lying to your vehicle insurance company is never a good idea. Failure to disclose tickets, past accidents or other moving violations on your application could result in serious repercussions. For starters, your vehicle insurance company might cancel your policy or even deny your claim. Going forward, other insurance companies might view you as a high risk candidate and charge you higher rates. So, if you’re thinking about lying on your policy to save a few bucks, think again. Insurance companies have a way of finding out about such things. They do check your driving history, driving records, credit rating etc, so your lie is sure to be found.

Mistake 4: Assuming your insurance provider doesn’t need to be informed about life changes.

Car insurance rates depend upon a number of factors. These include your age, sex, marital status, where you live, credit and driving history etc. So if there have been recent changes in your life- relocating to a different city, marriage, divorce, retirement etc, let your insurance provider know as soon as possible.

Make a mental note to avoid these mistakes before buying your car insurance. You’ll be glad you did.