Buying a car is by no means an easy feat. And, when you finally purchase the right vehicle after a lot of research and deliberation, what awaits you is finding the right car insurance. It might seem like a long-drawn process, but if done right, it can maximize your benefits for a small price. To help you in your endeavor, we’ve put together five car insurance mistakes you must steer clear of.
Buying the first one that you see
Several car buyers make a common mistake of buying their car insurance without really considering the options. This can happen when you haven’t shopped around for insurance while selecting your vehicle. When you choose a policy in haste, you might overlook critical aspects regarding the premium, benefits, or other company policies, only to regret it later. So ensure you take your time to look around and buy the correct type of insurance to complement your car.
Being unprepared or underprepared
While filling out insurance forms isn’t equivalent to writing an examination, it does require that you have answers to very pertinent questions. Usually, your car insurance cost can vary depending on your zip code. Also, insurance quotes change depending on the type of car you own, its engine size, and its trim level. Some insurance companies also look at local crime stats before they underwrite the policy. So, knowing the answers to these questions will help you determine the actual value of your policy.
Being unaware of your insurance needs
Every state has different statutory limits related to the type and amount of insurance you require. Factors like the type of vehicle, its price, who’s going to drive and how much, and even the weather conditions in your area are important while deciding your car insurance needs. As a future policyholder, you also need to put in some work to find the right mix of coverage and cost. This is a crucial step to save money in the long term, one which many policyholders skip. If you’re unsure about your needs, you can always consult an insurance agent. Think of it as a one-time investment. When it’s time for renewal, you’ll have a better idea about what’s on offer.
Not buying enough coverage
This ties back to the previous point of not being in the know concerning your needs. While you need to meet the state’s requirements, it’s always advisable to have considerably higher coverage. Go for underinsured or uninsured motorists, medical claims, and personal injury protection coverage as well. And if you own a high-end car or have a loan, comprehensive and collision coverage is a suitable option. Otherwise, you might end up facing heavy losses on account of theft or damage.
Sticking to the same insurance provider
Paying your insurance renewal bill might seem like a harmless exercise that you spend very little time on. But it’s also an avenue for funds to bleed. So the next time you’re up for renewal, look around for options. Since you already know what kind of coverage you currently have, your search will be easier. Simply compare quotes and offers on your computer or phone, and if you find something great, you can either switch or go back to your current provider to see if they’ll meet it.
It’s mandatory to purchase car insurance in nearly every state of the country. In addition, there are various types of car insurance policies with different levels of coverage depending on what you need. So it becomes all the more crucial to do your homework and spend some time researching before you take the plunge.
