Did you know 96 percent of Americans don’t understand their insurance policy? Buying insurance often feels overwhelming and complicated. If you need some options for car insurance, keep reading.
In this guide, you’ll learn how to avoid these car insurance shopping mistakes. Protect yourself and your family in the event of an accident. You should get the right coverage and get enough insurance for your needs.
Ready to learn more? Check out the tips below.
1. Don’t Select Too Low of a Deductible
Low deductibles seem appealing to most people. But in the event of a significant crash, you will end up with a tricky situation.
A low deductible will often result in higher premiums than necessary. This won’t work in your favor.
2. Don’t Forget to Ask About Potential Discounts
Most car insurance providers will give a discount for a clean driving record. Defensive driving courses will also result in a lower price. Ask the providing agent about possible discounts.
You could also look at bundling your car insurance plan with your homeowner’s insurance.
3. Don’t Delay on Changing Your Plan
Transitioning to a new insurance plan might seem overwhelming. But an outdated plan might not benefit you anymore. You should consider looking into a new plan if you’ve been with the same provider for years.
4. Avoid a Monthly Plan
For people who live month to month, you might find it challenging to pay for your insurance upfront. Yet, you will save on premiums if you try and settle this in one lump sum.
Shop around and get cheap car insurance.
5. Don’t Rush the Process
Make sure you review your vehicle policy each year. Most drivers always end up renewing their previous policy. But you should take the time to see what other insurers will provide.
One-third of policyholders don’t renew their insurance. Most of the time, people will renew their insurance automatically. Get the best deal possible by shopping around. It’s worth the time and effort.
6. Avoid Buying the Lowest Option
Most vehicle owners will look at buying the least coverage, believing it’s enough. Yet, in some situations, the bare minimum isn’t enough.
If you hit a luxury vehicle, your minimum coverage isn’t going to cover the price of the car. What would you be at risk for if you did get into an accident?
Consumers believe they will save money when they increase their deductibles. But it’s a significant problem if you can’t pay the deductible after a crash. If you can’t afford the repairs, get more coverage.
To save money, consumers try to cut corners. But you shouldn’t put yourself or your family at financial risk if possible.
7. Don’t Ignore the Insurer’s Customer Service
When shopping around for insurance, look at how they provide customer service. Are they rushing you through questions, or do they remain polite and respectful?
8. Don’t Skip Through Reading Your Policy
Before buying a policy, research the company. What are the details of the proposed policy?
Companies have a reputation for providing products that clients don’t always understand. You should find out your policy details and understand what you bought.
Avoid waiting for an insurance adjuster to tell you the details of your plan after an accident. This will lead to brutal surprises. Go over the exclusions and policy terms with your insurer.
9. Don’t Lie to Your Insurer
Don’t lie to your insurance company. Make sure you provide them with accurate and detailed information.
Drivers will usually lie about who frequently uses their vehicle or even what it’s used for, so they get a good deal. Avoid jeopardizing your future. Tell the truth about how you will use your vehicle.
You don’t want to choose the wrong coverage and get in trouble.
10. Don’t Rely on Online Shopping Sites
Most insurance providers will list an online insurance quote. Yet, not every major insurance company will provide a quote there. You should spend some time researching potential providers.
What companies can provide you with a better rate? Are you aware of the other insurance agents in your local region? Don’t rely only on online comparison sites.
You can easily get a quote over the phone in minutes. You will need to provide the agent with your vehicle type, insurance needs, and your driving history.
Submitting information online will often result in a waiting period. The agent will get back to you with more detailed information. The instant quote you might find online isn’t always accurate.
11. What About a Big Umbrella Policy?
Did you buy an umbrella policy before? You should see if you can get the same kind of extra coverage with any new provider you pick. Umbrella policies will give you extra coverage when your liability coverage ends.
If you have a lot of assets and hope to avoid an expensive lawsuit, ensure you have the option to buy an umbrella policy. Insurers tend to charge people extra for this policy.
Factor this in when you get a look at getting a quote.
12. You Shouldn’t Ignore the Payment Policy
Most insurance companies will provide a convenient payment option. You might be able to pay the bill online. Yet, you should understand the potential late payment fees. Are there other potential charges?
The late penalty will vary from business to business. Always ask about the payment policy. Find out the date the payment is due and if you will receive a discount for paying everything upfront.
These details aren’t usually on the company website. You might only receive this information upon getting a contract.
13. You Shouldn’t Have a Gap Between Renewals
Make sure you don’t ever let your car insurance policy expire. What would happen if you got into an accident? You could suffer major legal or financial consequences.
Make sure the gap is minimum. Otherwise, you could also end up paying more on your insurance premium.
If the company notices time passed between the renewal and the expiry, they may request an inspection of the car. They won’t insure your vehicle until they complete the inspection.
You will end up with a higher payable premium after the vehicle inspection.
Make sure you spend the appropriate amount of time researching a decent provider. Don’t cancel your insurance until you know for sure you have another one lined up.
Your previous insurer will ask for the new policy before they even cancel the existing one. Make sure you get organized when it comes time to buy your new policy.
14. Don’t Skip the Policy Verification Process
Online car insurance has made it seem easier to buy insurance. You can get a policy within minutes and move forward to the next task. Yet, you should spend your time carefully reviewing the policy.
You want to ensure you have adequate coverage and there aren’t any errors. An error could cost you a lot if you get into an accident. A claim could get rejected over an error.
When you get your policy, make sure you review it carefully. Look for the details like your vehicle number, expiry date, address, and name. If there are some problems, contact the insurer right away.
15. Don’t Miss Premium Payments
You should always make sure to pay your insurance premiums on time. Otherwise, your insurance policy could get canceled. You will usually get a note in the mail if you’re past due. You shouldn’t rely on this, however.
If you don’t end up paying your premiums, your policy could get canceled. You’ll have a challenging time finding another insurance provider because of your past failure to pay on time.
Set up a pre-authorized withdrawal from your bank account. You won’t have to worry about missing any bank payments again.
If you don’t have a lot of wiggle room in your account, make sure you add a note to your phone. A few days before the payment will get withdrawn, you should ensure the funds are in the account.
You can avoid expensive nonsufficient funds and issues with your insurance provider.
You Can Avoid These Car Insurance Shopping Mistakes
We hope these car insurance shopping mistakes were insightful. Make sure you find a reputable car insurance provider and don’t cheap out on the insurance.
Find a plan that provides you with adequate coverage. Enough to keep you and your family protected in a significant accident.
Read reviews about the insurance company, and understand what customers think about them.
Need more helpful auto tips like this article? Check out our blog today.