8 Common Mistakes to Avoid When Buying Car Insurance

When buying a car, you should make sure that you get the right insurance policy to cover you and your family. You should see to it that your coverage protects you in case of an accident or loss of car. As you do that, you will also want to look for an option, which is pocket friendly without compromising on the adequacy of the coverage.

Getting the right insurance coverage for your car can be an uphill task. Therefore, you need guidance that will help you get the right policy at a low cost. The following are 8 common mistakes that you should avoid when buying a car insurance.

  1. Getting inadequate coverage

If you rush into buying a policy just based on a low price, you might end up with inadequate coverage that will not protect you fully in case of a major accident. It is even worse when there is personal liability involved in the accident and you have the minimum level of insurance coverage. Always seek the advice of your broker on what they think is the best coverage amount for you.

  1. Inertia

Explore quotes from a number of insurance companies and avoid the mistake of sticking with one just because it is familiar or cheap. It may take a little bit time but it is worth it in the long run.

  1. Not understanding your insurance policy

Make an effort to understand your insurance policy fully. With the help of your agent, make sure you understand all the terms and conditions of the policy. You can’t afford to misinterpret what is contained in the car insurance policy.

  1. Providing inaccurate information to your insurer

This can easily lead to denial of a claim. You should commit yourself into giving accurate information to your car insurance company to avoid the serious consequences of misrepresentation of information. People lie to their insurers to win better insurance rates for their cars. A person can lie about who drives the car, where the car is driven or parked. Insurance companies have mechanisms of cultivating the truth and if you are found guilty of misrepresentation of information, you may also be penalized.

  1. Paying your premiums in installments

Many companies charge convenience fees when you pay your premium in installments. To cut down on premium costs, you should pay a lump sum for the whole year instead of monthly or quarterly payments.

  1. Wrong choice of deductibles

Deductible amounts can vary significantly. A high deductible can reduce the amount of premium you will pay but if an accident occurs, you will be required to pay the full deductible amount up front.

  1. Not going for add-on covers

If you get a company that offers an additional service into your policy, go for it if it makes sense. The add-ons can go a long way into giving you a comprehensive and robust coverage.

  1. Not getting a multi-line insurance policy

You should not make a mistake of not getting both your car and home insurance from the same company. It will help you cut down on premiums and save money.

You should tread carefully when buying car insurance and get yourself the right cover.

Written By Ryan Cooper