While buying auto insurance can seem like a simple process, many consumers make mistakes that could cost them and their families dearly. Auto insurance protects drivers in the event of an accident or an unexpected loss of a vehicle, which makes it vital that you buy the right plan. Here’s a look at four auto insurance mistakes you should avoid making.
Not Comparing Quotes
When shopping for car insurance (whether it’s your first policy or you want to switch insurers), it’s crucial to compare quotes from multiple companies in order to get the most favorable deal. Keep in mind that you may be paying too much for your coverage when all you have to do is shop around. Consumers who don’t comparison shop may end up missing out on significant discounts.
Not Looking Into Discounts
Discounts on auto insurance plans are available for everything from having good grades in school to driving without speeding tickets. Discounts may also be offered for being part of an organization such as AAA or AARP, for subscribing to roadside assistance services, or for taking defensive driving courses. Talk to your agent about what discounts are available to you and how they might help lower your monthly premium payments.
Not Considering Your Credit Score
Your credit score and the details on your credit report may affect how much you pay for car insurance — and not in a good way! The lower your score is, the more likely you are to have to pay higher premiums because insurers think customers with poor scores are more likely to file claims or be involved in accidents.
Buying Too Little Coverage
The bare minimum amount of auto insurance coverage that is required by law may not be enough to cover your assets and your medical expenses in case of an accident or other loss. You’ll need to find out how much coverage you need, but it’s important to remember that the amount you purchase has to be enough to cover any financial losses from a claim.
