Top 5 Mistakes To Avoid When Shopping For Car Insurance
- Date: 2008-11-12 - Word Count: 727
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"Why pay for something you're not going to use?" is a common question among many people who have tight budgets. This is no different in terms of car insurance. You may think, "I'll never be in an accident" or "I don't need that," however automotive insurance is something that the law requires. So you go out and buy the cheapest policy you can find, right? Wrong! Though you're trying to save a few dollars, you might short-change yourself in the long run, in the event that something does happen to you and your vehicle. Below are five common mistakes you can avoid to make sure you don't end up paying large sums of money out of your own pocket in the event of an accident.
1. Don't just purchase the bare minimum required by law.
Purchase an insurance policy that suits the vehicle you drive. Common sense says that the larger the vehicle is, the more damage it could potentially cause. If you drive a large vehicle - say, an SUV - and you hit another vehicle, you could cause a lot of damage. If you had purchased a $15,000 limit on your policy, and the damage is valued at $30,000, you can take a guess at who will be responsible for that balance after $5,000 - yes, that's right: YOU! Although the goal is to keep your monthly payments down to save some money, it might be wiser to choose higher limits with your insurance policy to avoid a big financial loss later.
2. Don't Settle - Shop Around
If you check several quotes with several companies, do not automatically choose the one with the lowest payments. Take a few minutes to compare what each individual policy will cover. Before making a final decision, make sure each offer has similar limits, and also take into account the availability of the insurance provider. You will want to select a policy that suits your needs, and also will be there for you when you may need them.
3. Don't Lie About It
Don't cut corners when entering traffic violations or accidents when requesting quotes. Yes, it's embarrassing that you got caught for going forty-five through a school zone on the only day you ever were speeding, or that you happened to accidentally back into a car pulling out of your spot at the grocery store. However, without disclosing this information when requesting a quote, you will not get an accurate rate. Insurance companies DO check your driving records, and they will adjust your rate accordingly for any mishaps that may appear on your record. They may even terminate your policy if your record doesn't meet their requirements. It's a lot easier to be up-front about your driving history, and get accurate quotes when shopping for a new policy.
4. Assuming "They are all the same"
Do not assume that all auto insurance companies will provide the same coverages. While "Company A" may be available 24/7, they may have a limited number of garages you can go to for repairs. Alternately, "Company B" may offer a wide range of garages to choose from, but they may not be available to enter your claim at any time of day, any day of the week. Make a list of what is important to you, and choose the company that will best suit your needs.
5. Cut Unnecessary Costs Where You Can
There are a number of options available on auto insurance policies that you may already have through other services. If the goal is to save money on your insurance, it may be possible to cut out some selections that may be covered through, say, AAA, or your personal health insurance. You may choose not to have Roadside Assistance on your policy if you already have towing covered through AAA, or could choose not to have Personal Injury Protection (unless it is a state requirement) if your health insurance already covers injuries through accidents. If you already have GAP coverage through your finance company, it may be possible to skip Loan/Lease Payoff coverage on your auto insurance policy.
Although you're trying to save every last penny you can, it is unwise to select the cheapest policy you can find. Shop around for the policy that best suits your needs AND your budget. You may think you'll never need your auto insurance, but in the event that you do one day, you'll be happy you have it.
1. Don't just purchase the bare minimum required by law.
Purchase an insurance policy that suits the vehicle you drive. Common sense says that the larger the vehicle is, the more damage it could potentially cause. If you drive a large vehicle - say, an SUV - and you hit another vehicle, you could cause a lot of damage. If you had purchased a $15,000 limit on your policy, and the damage is valued at $30,000, you can take a guess at who will be responsible for that balance after $5,000 - yes, that's right: YOU! Although the goal is to keep your monthly payments down to save some money, it might be wiser to choose higher limits with your insurance policy to avoid a big financial loss later.
2. Don't Settle - Shop Around
If you check several quotes with several companies, do not automatically choose the one with the lowest payments. Take a few minutes to compare what each individual policy will cover. Before making a final decision, make sure each offer has similar limits, and also take into account the availability of the insurance provider. You will want to select a policy that suits your needs, and also will be there for you when you may need them.
3. Don't Lie About It
Don't cut corners when entering traffic violations or accidents when requesting quotes. Yes, it's embarrassing that you got caught for going forty-five through a school zone on the only day you ever were speeding, or that you happened to accidentally back into a car pulling out of your spot at the grocery store. However, without disclosing this information when requesting a quote, you will not get an accurate rate. Insurance companies DO check your driving records, and they will adjust your rate accordingly for any mishaps that may appear on your record. They may even terminate your policy if your record doesn't meet their requirements. It's a lot easier to be up-front about your driving history, and get accurate quotes when shopping for a new policy.
4. Assuming "They are all the same"
Do not assume that all auto insurance companies will provide the same coverages. While "Company A" may be available 24/7, they may have a limited number of garages you can go to for repairs. Alternately, "Company B" may offer a wide range of garages to choose from, but they may not be available to enter your claim at any time of day, any day of the week. Make a list of what is important to you, and choose the company that will best suit your needs.
5. Cut Unnecessary Costs Where You Can
There are a number of options available on auto insurance policies that you may already have through other services. If the goal is to save money on your insurance, it may be possible to cut out some selections that may be covered through, say, AAA, or your personal health insurance. You may choose not to have Roadside Assistance on your policy if you already have towing covered through AAA, or could choose not to have Personal Injury Protection (unless it is a state requirement) if your health insurance already covers injuries through accidents. If you already have GAP coverage through your finance company, it may be possible to skip Loan/Lease Payoff coverage on your auto insurance policy.
Although you're trying to save every last penny you can, it is unwise to select the cheapest policy you can find. Shop around for the policy that best suits your needs AND your budget. You may think you'll never need your auto insurance, but in the event that you do one day, you'll be happy you have it.
Related Tags: low cost car insurance, low cost auto insurance, car insurance tips, car insurance information, auto insurance tips, mistakes to avoid
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