We can’t avoid car insurance or any other type of auto insurance. It is illegal in most countries to drive a vehicle on public roads. We are forced to take the plunge and pay.
Despite this, the average person still pays more than they should simply because they keep making the same mistakes. Here are 10 things to avoid when you get car insurance.
1. Do not shop around
People often take out insurance with a company because they are recommended by family or friends. This can be costly because of so many variables. Before you make a final decision, it is important to compare quotes from at least six to seven providers.
2. Selecting the Minimum Deductible
If you file a claim, the deductable will be what you pay out of pocket. The lower your deductable is, the more you will have to pay out of pocket in the event that you file a claim. However, higher premiums will result. The cost of auto insurance can be reduced by increasing the deductable amount if it is reasonable.
3. The same level of coverage
You will need maximum coverage if you purchase a new vehicle, or a relatively new car. So make sure you get full coverage. It will provide you with complete coverage, regardless of what. However, it is expensive. Do you really need the maximum coverage if your car is older and has a lower value? You could end up paying more insurance for two years than the car’s actual value.
4. Do not miss the opportunity to inquire about discounts
Do not assume that your insurance provider will keep you informed about any new discounts or special rates. They wouldn’t want to lose money.
5. Not necessary drivers should be included
You should only include the drivers who regularly use your car on your car insurance policy if you have more than one person living at your house. Teenagers are especially vulnerable. Consider temporary coverage if your teenager uses the car only once or twice a year.
6. All Drivers are Full-Time Drivers
Ask your insurance provider about discounts for occasional drivers and limited mileage if your child or partner only uses your car occasionally.
7. Failing to check driving record
Although it is not a common occurrence many people end up paying more insurance because their driving record has a history of traffic violations or accidents. However, they have never been involved in any accidents or violations.
8. Poor Credit History
Contrary to popular belief, not all insurance companies will conduct a credit check. If you have poor credit history, this can increase the cost of your auto insurance. Choose a provider that does not consider credit scores.
9. Claim for Minor Incidences
Do not submit a claim for minor repairs. You’ll be able to pay for minor repairs from your own pocket and will benefit more over the long-term. Your premiums will go up the more you claim.
10. Don’t Research Before You Buy a Car
Insurance premiums for certain makes and models are higher because they are more susceptible to being stolen. Before you buy a car, check with your insurance provider to see which cars are best avoided.
Car insurance is here to stay. But if you don’t make these mistakes, you might be surprised at how affordable it can be.
