Don’t Drive Off with These Auto Insurance Buying Mistakes
While you can find low cost auto insurance in today’s market, you can also drive into a heap of trouble with insurance that is not only what you need as far as coverage, but proves costly.
So what are some of the common mistakes that one should avoid when shopping for auto insurance?
Among them are:
- Keep in mind that the insurance agent is there to sell you insurance, so look at him as an additional car salesman and haggle when and where you have to. While not always the case, many agents are paid on commission and it is in their best interests to direct you to purchase coverage that you may not even need.
- Take note that both your deductible and your premiums are tied together, so shop wisely. If you keep a larger deductible, your premiums will be lower and you can use the difference to save in the event you may need it somewhere down the road for your deductible. Even though you may be considering maintaining a lower deductible so you can file a claim for any and all fender benders, etc. all claims increase the chance that future premiums will go up.
- Be sure to get a copy of your driving record. In the event you’ve been saddled with a ticket and you had to go to traffic school, your attending school may not be indicated. Maintaining all receipts for paid tickets and traffic school will benefit you if you have to question something.
- Always be honest about your driving history and do not lie on an application. Lying in your application will lead to nothing but trouble, as insurers verify information with the state department of motor vehicles. In the event you leave something off or do not truthfully label things, the insurance company could very well deny your application or put you in the category of high risk applicant.
- Never assume that your state’s minimum requirement is sufficient to meet your needs. In the event you’re involved in a crash that exceeds the limitation, where will you get the funds to cover the difference? Not only could your car suffer damage, but you could too with possible injuries and even more damage to your wallet. Most experts will advise drivers to have at least $500,000 of liability coverage.
- Another option to think about is purchasing an umbrella policy. These policies are typically inexpensive and can protect both the driver and their assets should a “catastrophic” accident take place that exceeds one’s coverage limitations.
- Drivers should also be on top of their credit histories. More and more insurance companies are taking a look at drivers’ credit ratings when putting together quotes. Make sure you have a good credit rating when shopping for auto insurance or be able to explain why your record is less than stellar.
- How will you finance your premiums? While monthly payments sure are convenient, they also are more expensive. Instead of paying each month for your premium, paying it every six months is a way to save money over time.
- When looking into purchasing auto insurance, ask the insurer if they make available accident forgiveness. If they do, under your plan, the first accident you’re involved in will not increase your rate.
- Finally, be sure to obtain all the discounts possible when getting auto insurance. The majority of car insurers provide discounts for a variety of things, including maintaining an accident-free driving record and having anti-theft devices on your vehicle. Consumers should ask for a full list of the items for savings that insurers offer.