Choosing the right car insurance isn’t always easy. One can land into doing a mistake while purchasing car insurance. Hereunder, I have listed down 8 Common car insurance mistakes that you should avoid at all cost. These tips will help you avoid taking bad decisions about your car insurance.
8 Car Insurance Mistakes
Getting minimum level of coverage: Your state of residence mandates to take a minimum level of car insurance. However, when you are struck with an accident it might not be sufficient to cover up the costs of damage. For instance, when your SUV destroys BMW, your minimum property damage coverage wouldn’t even cover the cost of the bill. So it would be a wise decision to take car insurance based on the car you drive rather than setting it up on the minimum level of coverage.
Not taking advantage of Discounts: You might not be aware, but most insurance companies do provide discounts on car insurance. It is up to you to take advantages of these discounts in order to reduce the car insurance premiums. For instance, insurance companies provide discounts for having a good driving record. They also provide loyalty discount for being a long time customer. Then you can also get a discount if you drive a low number of miles per year. Likewise, if you adhere to safety features and take care of specific security features you might end up getting big discount on your car insurance premium. So ask your car insurance company for discounts and make sure you get all the discounts that you are eligible for.
Not Understanding what you are buying: It is not just enough to merely have a car insurance policy. You have to understand it so that you are not taken aback when you file a claim. So work with your agent to understand each and every terms and condition of your policy. Most of the time it happens that what you comprehend is not what is meant in the policy. So do not wait till you file a claim. It is your duty to understand your car insurance policy. Do not assume that various things are being covered in your car insurance policy, but get down to know for sure that they are being covered or not.
Not providing accurate information to your car insurance company: You can be denied of a claim if you do not provide accurate information to your car insurance company. This can be a grave consequence to you. So do not fall prey to lying about things that are asked you while you go in for car insurance. For instance, some people lie about who drives their car, in which city they drive their car, or where they park their car at night, in order to get better rates for their car insurance. However, misrepresentation can be costly to you, and it can lead to denial of your claim. Insurance companies employ their methods to find the truth when they are handling the claims, and if they find that you had lied when you had taken the policy, your claim can go for a toss, or you could be penalized heavily.
Not reevaluating your car insurance coverage: It is merely not enough to take car insurance coverage and forget it. You have to reevaluate your car insurance coverage in order to find out that you have adequately covered your car in case any claim arises. You have to understand that as your car gets older or your circumstances changes, your car insurance needs changes too. So you should make a habit to reevaluate your car insurance periodically with your agent. As you reevaluate, you might come to know that you have to increase your car insurance in order to justify the present conditions and future requirements. So do not forget to reevaluate your car insurance coverage periodically.
Paying Your Car Insurance Premium In Installments: Car Insurance companies charge the extra fees in the form of “convenience” fees when you pay your car insurance premium in installments of monthly, quarterly, etc. So your annual car insurance premium goes for a hike. Even a $7 per month car insurance premium can add up to $100 a year. So if you can afford, pay your car insurance in a lump sum rather than splitting the payments in monthly, or quarterly. This can save you lots of dollars.
Seeing the Price rather than coverage: Price of the premium should not be the sole criteria for finalizing a car insurance company. Price of the coverage might be the lowest, but first see what coverage you are getting for your premium. It might happen that a competitor is offering a better coverage for few extra dollars. So before buying a car insurance policy, compare policies from different companies just to know what they coverage they are offering. You should know what you are getting for your money.
Not having a multi-line insurance policy: A multi-line insurance policy means that you get your car and home insurance from the same carrier. This can be an advantageous position for you as according to Insurance Information Institute; you can save up to 15% on premiums on both the policies when you get a multi-line insurance policy. So bundle your car insurance with home or apartment policy to get valuable credits and save some big dollars for you.
So follow these valuable tips and avoid making common car insurance mistakes.