The Most Common Auto Insurance Mistakes And How To Avoid Them

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

If you want to score the ideal auto insurance for your vehicle, you have to do more than a few minutes of research on Google. To leave the table with more than a basic policy, you have to ask questions and stay informed. You also need to be aware of how you could sabotage your auto insurance before you even sign on the dotted line.

Before you get to that point, it's important to consider the most common mistakes that other policy holders make. Take a minute to review a few of these mistakes, and let us show you how to avoid them.

Failing to Do Research

If you don't understand your insurance policy you've already lost the battle. You would never purchase a car you can't drive, so why would you sign up for an insurance plan you don't understand? In reality, failing to do research before making a purchase is one of the most common mistakes auto owners make. If you don't ask your broker or agent the right questions, or any questions at all, you're putting yourself in a precarious position. Don't be afraid to ask for help. The more questions you ask, the clearer your understanding will be.

Purchasing the minimum amount required

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.

Admittedly, none of us like overspending on something we aren't required to. Many of us make the mistake of assuming we'll never need insurance, so what's the harm in shaving off a few of those 'extra' protections? The only reason we purchase insurance is to have protection, and while we hope we never have to cash it in, we never know what could happen. Instead of purchasing the minimum amount necessary, purchase what you need that fits within your budget.

Basing your purchase on price alone

Giving up our hard-earned cash is stressful. We simply don't like to do it. The problem with this attitude is the fact that we end up purchasing the wrong auto insurance because we don't want to spend the money. Some individuals even opt for low or even zero deductibles because they don't like the idea of forking out cash should an accident happen. However, choosing a low to non-existent deductible causes higher premiums. Instead of choosing a higher deductible, put the money you're saving with the lowered premium into an emergency auto fund in case an accident does happen.

Paying monthly premiums instead of yearly installments

Many people don't realize that when they pay their policy through monthly installments, they end up paying almost 10 percent more than necessary. Even if your budget doesn't allow you to pay it off in big annual chunks, you could actually save money by breaking it in half to pay it twice a year instead of all at once. You'll still save money on your auto insurance, and you'll attain monthly freedom with your cash flow.

Discover more ways to save, by comparing the top quotes from the biggest names in auto insurance through our platform. We can walk you through the process and provide comprehensive assistance whenever necessary.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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