Getting good car insurance is one of the most sensible things a car owner should do upon purchasing a new vehicle. Buying a new vehicle is a major expense and you need car insurance to ensure that your car is protected in case of an accident whenever you are on the road. Car insurance policies may look the same, but they are not equal at all.
Critical thinking is a useful skill in this aspect of vehicle ownership and being discerning up front can help you reap rewards later. Here are the common car insurance mistakes that you should avoid.
1. Neglecting to Compare and Contrast
Buying car insurance from the first car insurance company you see is not wise. You should always compare car insurance policies. This may be one of the biggest challenges in purchasing an insurance policy for your car.
Once you have a short list of policies from insurance companies you are eyeing, you should take the time to look at each policy’s components. See to it that the quote has the same coverage level and deductible for every element. Choosing a policy that has coverage for property damage and injury liabilities is ideal. The policy should also cover an underinsured or uninsured motorist.
If you want protection for your car against fires, theft, falling trees, vandalism, or natural calamities, then you need comprehensive insurance. You should also see if collision insurance is included in the policy as this is the insurance that pays for damages resulting from a head-on collision with an object or another vehicle.
2. Purchasing a Car Insurance Policy with Low Premium
Many car insurance buyers mistakenly consider price the strongest deciding factor in purchasing car insurance. Many car owners purchase the most inexpensive policy they can get. This is a mistake because an inexpensive policy means that your car will not get enough protection. When an accident does happen, you will need to pay for even more than what your insurance covers. You should get a car insurance policy that can cover enough when you need it.
3. Being Unaware of What You Need
Each state has its own minimum mandates for car insurance coverage. Please do not base your decision simply on a friend’s car insurance policies. You have your own insurance protection needs, determined through various factors such as your living environment, driving history, vehicle model and make, how much you drive, and the price of the vehicle. If you are unsure about what type of coverage you need, you can always talk to a licensed car insurance agent.
4. Lying on the Insurance Policy Application
You should never lie on your car insurance application. If you do this, you might find your vehicle without coverage in case of a vehicular accident as the insurance company might cancel your policy. This might even prevent you from getting a car insurance policy in the future.
Car insurance companies tend to become apprehensive about insuring anyone who has a recorded cancellation. You should also disclose your driving schedule, car’s condition, and car’s value. Lying is a common reason to deny your insurance claim. This also makes it challenging for investigators to defend you if you are charged.
5. Failing to Ask Questions
Always have a list of questions before you meet insurance agents or representatives. You can make a list of the questions that you want to ask. If there are technical words, look them up before you use them in your questions. Try to know as many insurance terms as you can. Using unfamiliar and intimidating words often distracts insurance buyers, convincing them to sign. If you know the terms and you ask about them, the agent could pause and explain.
6. Purchasing a Policy with a Coverage That Exceeds Your Needs
Buying too much car insurance coverage is possible. Many car insurance advertisements convince the owners of old vehicles to buy full coverage car insurance policies. When it comes to insurance, car owners of new or old vehicles should only pay for a tenth of the value of their cars. In case you cannot find a good price for your current vehicle, searching for a new vehicle should be your next step.
You can purchase your car insurance from online or offline insurance companies. These companies should give you complete quotes and computations. Choosing the right one can make all the difference in owning a vehicle. Once you decide on the right insurance company, remember to accurately fill out the paperwork. Having the right level of car insurance coverage can give you peace of mind whenever you drive your car.