Avoid These Mistakes When Buying Auto Insurance
Most drivers, especially the beginners, view auto insurance as more of a bad thing than a good thing or a benefit. But the truth is that car or auto insurance is more of a benefit than a burden. It is also a legal requirement that any car owner out there can simply not afford not to have.
In most States, individuals caught driving without adequate auto insurance run the risk of having their vehicles impounded immediately. In addition to this, such individuals may also be forced to pay heavy fines by the law or have their driving licenses revoked in the worst case scenario.
The good news, however, is that acquiring auto insurance is not as difficult as some new drivers believe. In spite of this, most beginners tend make a few common mistakes when choosing their first policies – mistakes that are actually very costly but usually appear trivial at first. Investing in a policy is a long-tem commitment and when the entire process is not weighed up carefully, the buyer can easily end up purchasing a completely useless policy for a hefty amount.
Here is a compilation of mistakes to avoid when buying auto insurance, whether you are a new driver or not:
1. Failing to shop around
Every auto insurance company has its own parameters. This simply means that it’s possible for two providers to offer the same coverage but at different prices. It’s therefore wise to try and get as many quotes as possible before finally settling for a provider. This might take some time but at the end of the day, you will be sure that what you have chosen will be provided for the best price possible. In spite of this, don’t let price be the only way to appraise a provider. While it’s important to identify the cheapest providers, cheap is not always the best, and in most cases, cheap eventually turns out to be more expensive.
2. Going with the minimum in a bid to save
As you are probably aware of, drivers are required by law to have at least a minimum coverage, which is usually known as compulsory insurance. While it is true that compulsory auto insurance calls for a lower premium, it can easily turn expensive in case of an accident. For example, if you hit a person’s car and unfortunately, the damages you cause exceed your minimum coverage, the owner of the car you hit has the right to sue you in a bid to recover the difference. In most States, minimum coverage for property damage and for bodily injury ranges from $10,000 to $50,000 per individual per accident.
3. Lying on your auto insurance application
Sometimes, distorting the truth just a little might seem like a clever way to get the best prices, but distorting the truth will definitely come back to haunt you at some point. Reputable auto insurance providers always have a way of identifying a lie and if they have reason to believe that you have given them false information, they have a right to cancel your policy, to decline to pay a claim, or to even report you to the police.
4. Not asking for discounts
In most cases, a policy comes with a discount of one type or another and it is always wise to ask if you are entitled to any. Some of the common discounts that come with auto insurance policies include the following:
· Paying up an entire policy in a single installment or in full
· Using EFT to make monthly payments
· Combining auto insurance with other types of insurance, such as home insurance
· Using one policy to insure multiple cars
· Student discount
· Good conduct discount
· Low mileage discount
What we have looked at are just some of the various mistakes most car owners make when shopping for auto insurance. There are more mistakes that can easily turn tragic, but the good news is that with a great deal of research, it is easy to find an effective coverage at a good price. Even a little research and a bit of company comparison can save you a lot. The internet offers a free research tool. Talking to friends, relatives, and other acquaintances is also a good way to identify an auto insurance provider you can partner up with for a long time to come.