Buying a car is a significant investment, so finding the right car insurance policy is essential. Searching for car insurance can be complicated because insurers assess multiple factors while calculating your rate. This causes many people to make mistakes. Here’s a look at some auto insurance mistakes to avoid.
Being Unsure of the Coverage You Need
While every state has minimum auto insurance requirements, you must avoid relying only on minimum coverage. Multiple factors impact your auto insurance rates, including:
- Your vehicle price
- It’s model and type
- Your driving history
- Your driving frequency
- Stats regarding the area that you’re living in
While purchasing full coverage is likely expensive, there’s a good chance that you can find the coverage that suits your unique needs within your budget.
Furnishing False Information on Your Car Insurance Application
One of the worst auto insurance mistakes you can make is not telling the truth while filling out your car insurance application details. Auto insurance companies will look at your driving record while going through your application. Inconsistencies are a clear red flag. In most cases, the insurer will decline to offer you coverage. Also, your insurer may decide to reject your claim and cancel your policy. You must be honest at all times while talking to your insurer.
Not Properly Comparing Rates from Multiple Insurers
While shopping for car insurance, assess quotes from multiple carriers before making a decision. Shopping around helps you find a policy that fits your financial situation. Some carriers may notify you about potential discounts that you qualify for.
Choosing a Higher Deductible
Choosing the wrong policy deductible could cause a financial problem in the future. Your policy deductible is the amount you are expected to pay towards a covered loss before your insurance kicks in to cover the remaining damages. The higher the deductible, the lower your premiums will be. While many people opt for a higher deductible, they are often unprepared for the financial consequences of that decision. You must figure out the right deductible amount for your current situation.
Not Updating Your Insurance
One of the most common auto insurance mistakes is failing to update your policy when you’ve purchased a new car or decided to move. Or when your teenager has started to drive. These are significant life changes that impact auto insurance policies. Inform your agent about any important such changes so that they can adjust your rates.
Not Purchasing Adequate Coverage
While purchasing the minimum coverage on your auto insurance policy seems like a good financial decision, it leaves you unprotected if an accident occurs. Minimum coverage limits are low, which means you could suffer huge financial losses if you injure someone or if your car is stolen or totaled.
Consult Family Financial Insurance Group
Avoiding these common auto insurance mistakes will help search for the right insurance smoother. If you have any questions regarding your policy, contact our team at Family Financial Insurance Group, and we will assist you.