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Avoid These 10 Common Mistakes When Buying Auto Insurance

Obviously, not having coverage is the biggest car insurance mistake you can make. Plus, buying the first insurance policy you come across isn’t the best decision either.

Because buying a car is considered an expensive purchase, it is not wise to leave such a large investment unprotected. Plus, auto insurance is mandatory in all states except New Hampshire and Virginia, and you risk heavy fines and, in some places, jail time, if you don’t have one. car insurance.

To avoid making the same mistakes, check out these blunders people make when buying auto insurance.

Common car insurance mistakes to avoid

Find out about these mistakes people make when buying auto insurance, and learn how to avoid these pitfalls.

  1. Not knowing the insurance coverage you need

  2. Don’t compare insurance companies

  3. Don’t Tell the Truth About Applying for Auto Insurance

  4. Forgetting to update your insurance policy

  5. Choosing the wrong deductible amount

  6. Don’t search for auto insurance online

  7. Buy only the minimum insurance coverage

  8. Buy excessive coverage

  9. Don’t ask questions

  10. Don’t look for discounts on auto insurance

1. Not knowing the insurance coverage you need

Each state has its minimum coverage requirements, but you shouldn’t base your decision on that alone. Each person has unique protection needs based on many other factors, including:

  • Vehicle type and model

  • Vehicle price

  • Driving experience

  • How much you drive

  • Driving conditions and weather forecast for your place of residence and travel between home and work

Of course, everyone would love to have full coverage. Nevertheless, it is generally quite expensive. So your best bet is to find the right balance between cost and coverage. If you’re not sure what kind of coverage you need – whether it’s full coverage, collision, injury protection, or whatever – you can always consult an insurance agent or consult the guide. of KBB on purchasing auto insurance.

2. Don’t compare insurance companies

People typically compare the prices of retail products every time they shop. You should apply the same principle when buying auto insurance to increase your chances of getting a good deal.

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So always try to get at least several quotes from different companies when buying auto insurance. For example, State Farm STFGX,
and others generally offer lower insurance rates for good drivers. However, if your driving record includes accidents or speeding tickets, you may need to shop around to determine the best and cheapest option for you.

3. Don’t Tell the Truth About Applying for Auto Insurance

Lying is probably the worst thing you can do when filling out your auto insurance application or claim. Insurance companies will have access to driving records and other personal data and can easily spot inconsistencies. On this basis, they can refuse to insure you and reject your request. But that’s not the biggest danger.

If an accident happens and they find out you lied, they can refuse to pay your claim and cancel your policy. Also, many companies will not be willing to insure you if they see a cancellation on your file. So be completely open about your driving habits, the condition and the value of your car.

4. Forgetting to update your insurance policy

While forgetting is not the same as lying, it is one of the most common car insurance mistakes and some insurance companies treat both the same. For example, if you don’t add your teenage driver to your existing policy but let them drive your car, you can face some pretty serious consequences.

Updating your policy isn’t always bad though. If you get married or move to a safer neighborhood, your insurance premiums are likely to drop.

5. Choose the wrong deductible amount

The amount of the deductible is an important part of your auto insurance policy. Typically, a lower deductible means a higher insurance price, but fewer out-of-pocket expenses in the event of an accident. A higher deductible, on the other hand, saves money on your policy but makes you pay more in the event of an accident.

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6. Don’t search for auto insurance online

One of the best ways to purchase auto insurance is through online comparison sites. Everyone is online these days and businesses need to adapt. You can even compare auto loans if you want.

There are many online platforms that could get you multiple insurance quotes after filling out a single application, which doesn’t take a long time if you have all the necessary paperwork on hand. Keep in mind that some of these sites provide estimates while others provide actual quotes. Either way, however, you can get a pretty good overview of the current rates that are on offer to you.

Also, most insurance companies provide quotes on their own websites, so you can do that instead of going to an office or calling them.

7. Buy only the minimum insurance coverage

It can be tempting to just get the minimum coverage insurance. But it’s not always very smart. That is why he lists common auto insurance mistakes. In almost 100% of cases, the minimum coverage is simply far from sufficient.

What is usually required is liability coverage, which in fact does not protect you but more importantly the other person you collide with. Also, the limits of liability are generally low, leaving the other person open to sue you for much more than what is covered by your policy.

Also, if you are driving an expensive vehicle, it is good to consider getting both collision coverage and full coverage. Otherwise, you risk big financial losses in the event of an accident or theft of your car.

To verify: Cars that cost over $ 200,000

8. Buy excess coverage

You can buy too much blanket just as you can buy too little. For example, if you have an older vehicle, it doesn’t make sense to buy an expensive policy or full coverage. Aggressive advertising shouldn’t change your mind.

In addition, you should generally not pay more than a tenth of the value of your car on insurance.

And if you can’t find a policy for a good rate, it might be time to consider finding a new vehicle.

9. Don’t ask questions

Whether you get auto insurance through a specific agent or company, always ask questions if anything is unclear. Agents and companies will often use fancy words and industry jargon to distract you and close the deal. But when you don’t understand a term or what they’re trying to say, get them to stop and explain it.

Even if you think you sound rude or silly, you aren’t. After all, it’s their job to help clients make informed decisions and educate them. There’s nothing to be scared of.

Learn more: 5 steps to getting the best auto insurance deal

10. Don’t look for discounts on auto insurance

Last but not least, you can still make great savings if you keep your eye out for discounts on auto insurance. This is one of the most common mistakes in auto insurance because it can be updated every year and sometimes people don’t ask for it.

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There are popular ways to save money, such as bundling your home and auto insurance with the same company or insuring multiple cars with the same provider. There are many other discounts available.

You can always ask the insurance company what types of discounts they offer. For example, a good student discount or discounts on safety equipment may be available. Having affinity membership in AAA or similar organization can also save you money.

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