3 Car Insurance Mistakes To Avoid

Posted on: 8 September 2022

Car insurance will help you avoid paying for costly expenses that can sink you into financial distress. If you are involved in an accident that leads to irrational claims, having coverages like collision insurance, comprehensive insurance, property damage liability, and bodily injury liability might be helpful. 

The right insurance cover will help you avoid tedious negotiations if you cause an accident. The insurance company will handle the repairs, legal costs, and medical costs. People can take advantage and make you pay for unnecessary bills if you do things independently. 

When purchasing car insurance, you need to be careful. Here are some mistakes you need to avoid.

1. Choosing the Wrong Coverage

While your state may have its minimum coverage requirement, you must consider other factors when choosing a suitable cover. These factors include vehicle type and model, price of the car, your driver experience, how often you drive, and weather conditions of the areas you frequent. Remember, you shouldn't choose a cover just because it's cheaper. A cheaper cover will save you money initially. However, you may have to pay out-of-pocket if you are involved in an accident resulting in liabilities exceeding your maximum coverage limit. You need to talk to your insurance agent to find the right solution for you.

2. Failing to Update Your Insurance Policy

A common mistake is underestimating the importance of updating your insurance policy. Ignoring certain details that increase your insurance risks can severely jeopardize your coverage. For instance, if you have a relative who frequently uses your car or regularly leases your vehicle for commercial reasons, you need to inform the insurance company. 

While doing so may affect your insurance premiums, it will benefit you in case an accident happens when a third party is behind the wheel. Updating your policy can also work in your favor. For example, your premiums will likely reduce if you move to an area with good roads or your credit score increases.

3. Not Asking for Discounts

Just like shopping, you can negotiate discounts with your insurance company. For example, if you insure multiple vehicles with the same company, you may be entitled to discounts. Also, if you have been accident-free for some years, you may merit a discount. Other types of discounts you may qualify for include driver status, policy car, vehicle car, and usage-based insurance discounts. 

Ensure you talk to your insurance agent about these discounts as they change yearly, so you might miss out on a good deal that will save you money. Moreover, building a personal relationship with an agent will help you get timely alerts of any changes in your insurance policy.

Contact a local insurance company, such as Clover Insurance, to learn more.