You may be making mistakes that are costing you money when it comes to car insurance. You could be paying too much, or you might not be getting the coverage you need.
Here are some tips to help you make sure that you are getting the best car insurance deal possible. Auto insurance can be really confusing. Car owners may not take auto insurance seriously unless and until they actually need it. Before buying auto insurance at the cheapest rate, you need to be aware of common mistakes that may end up costing you money in the long run. Let's have a look at what these are.
Not Getting Multiple Quotes
Before purchasing auto insurance, it is imperative for you to shop around and get multiple quotes from different insurers. In fact, you should start shopping around for insurance before you actually need it so that you aren't forced to buy a policy without researching all the options available. If you’re in Pennsylvania, You should go through this PA auto insurance guide that will help you get an idea of what to look out for when it comes to auto insurance.
Lying On The Insurance Application
It is a bad idea to lie to an auto insurance company before getting a quote or even making a claim. If you do so, you may find out that the insurer does not cover you if you are in an accident as they'll cancel your policy. What's more, if you're caught lying, the chances of you getting a fresh auto insurance policy in the future will be jeopardized. Even if you do get a policy in the future, you may end up paying a lot more as your premium. So, it's imperative not to lie while you are buying/renewing/claiming auto insurance.
Buying An Insurance Policy That Offers Too Little Coverage
Many states in the US have minimal requirements when it comes to insurance coverage. It's always a good idea to go for more than the minimum. For example, you should always opt for medical claims coverage and personal injury protection in your auto insurance policy. Go through these auto insurance tips that will help you save money while buying your insurance policy.
Buying An Insurance Policy That Offers Too Much Coverage
You also should take care not to be over-insured. For example, if you have a car that isn't worth a lot of money, then you shouldn't pay expensive premiums for comprehensive coverage. Some insurance companies may try to sell you add-ons such as towing and roadside assistance. But, if you're a member of an automobile association such as AAA, you may not need the extra coverage since AAA provides towing assistance. What's more, if you are buying a new car, you should keep in mind that you may get roadside assistance for the first couple of years.
Buying A Policy With Lots of "Features" You'll Rarely Use
I discovered recently that my insurance policy included roadside assistance and a bunch of other coverage that I already had included from my car dealer when I bought my Kia and then also I was paying for through AAA too! That was quite litterally three different services that I was paying for that probably all went to the same towing company. When I looked deeper at all the features included in my policy I discovered tons of other benefits that I didn't know I had and probably will never use. For some folks that want to be able to use those benefits, a more expensive policy is great! For me though, it was a mistake that was costing me money that I'd rather spend on traveling.
Opting For A Lower Deductible
Policies that have lower deductibles end up costing you more than policies with high deductibles. Having a low deductible amount in your insurance policy is fantastic if you have an accident. Still, premiums may be much costlier than the premiums for an insurance policy with a slightly higher deductible amount.
Not Bundling Your Insurance Policies
You can lower your insurance premiums by bundling multiple cars with your renters or homeowners' policies. It is convenient for you, and your insurer will love it since it means that you'll find it more difficult to change insurance companies in the future. At times, bundling your motorcycle, boat, or life with the company that issues your auto insurance policy will help you get an additional discount. Bundling your insurance policies will also save you trouble if you have to make multiple claims. For example, if your car is damaged due to a fire in your garage, a single phone call can start both your auto insurance and homeowners/renters insurance claims.
Auto insurance may seem overrated if you are a safe driver. But, accidents do not happen with any warning, and that's when you get to know the value of auto insurance. You should look to buy an auto insurance policy offering you the maximum coverage for the minimum premium.