5 Mistakes People Make When Buying Auto Insurance Coverage

Arranging vehicle insurance may look to be confusing and complicated looking from outside. However, you will see that it is not something you cannot figure out quickly and buy the best policy. There are various arguments as to what should be the most important aspect of your coverage. Some say getting right coverage is the key, others may argue that the price must be the determining factor. You should know that you can find a happy medium with a little effort. 

You just have to be patient during the process of choosing an automobile insurance cover. In addition you need to know a few things to increase your chances of getting it right. Here are five mistakes many people make when they are not patient enough, spare adequate time or don’t want to learn. 

Giving Up Coverage Easily

When you are quoted high premiums for your requirements it is easy to drop some of the covers you have identified at the start. When you are considering dropping coverage you have to think the worst case scenario. You have to think if you can handle the possible losses without the protection of insurance? You should only give up the cover that is not going to cause a devastating financial burden to you. 

For example, you may be able to live with not having Rental Reimbursement Cover. If something happens to your car and you cannot use it until it is repaired you may still be able to find alternative transportation options. So, it may be fine not to get a replacement vehicle until yours is returned. But can you give up large liabilities coverage so that you can get cheaper premium? What if you hit an expensive Lamborghini? Can you pay their damages out of your pocket when you don’t have sufficient liabilities cover? 

Not Understanding Strengths of Your Application 

You will need to apply to several companies to get quotes. Perhaps you should take your time to prepare for auto insurance quotes. Every application has its strengths and weaknesses. You need to figure them out and work to avoid being penalized for weaknesses and rewarded for strengths. Remember that every car insurer has their unique way of assessing risks and calculating premiums. 

For example, you may have had a run of bad luck recently and had traffic violation tickets and claims. That would be your weakness. On the other hand, you may be living in a nice neighbourhood, have a safe and cheap to insure car and great credit score. Those are your strengths. So, you would be looking for companies that offer the highest discounts for good credit score, safe cars and zip codes. And companies that offer the lowest discounts for good driving history.

Not Considering Pay as You Drive Auto Insurance

When you have a particularly bad recent driving record the best way of proving that you can improve and you were just unlucky is to allow companies monitor your driving. They can do this by installing a small device on your car and see how often you brake hard, how many miles you drive and times of the day you drive. Those are vital details that tell how risky a driver you are. 

Some companies offer immediate discounts when you agree to telematics and more when you prove to be a good driver. Furthermore, having a device that monitors your driving can have a positive effect on your driving. Many people surveyed confirm that they start improving because they are conscious of the device. 

Not Shopping Around

One of the biggest mistakes you can make is to accept the first quote you receive. Then, you are taking a chance and hoping that it is a good one. It is essential that you get at least three car insurance quotes before making your mind. There will be cheap and expensive ones to consider. As long as you can get the same (or similar) protection there is no reason why you should pay more. 

You can quickly search a few companies that offer online quotes and fill their form. Alternatively, you can visit a comparison website and let them list you the latest offers. If you don’t want to do any of them you can talk to an independent broker and let them search the market for you.  

Choosing the Easy Payment Option

It is easier to handle the premiums when they are spread over several months. But did you know that this comes at additional costs. Insurers charge more when you want to spread the payment and some companies offer additional discounts when you pay in full. So, look at the prices carefully for monthly payments and immediate payments. Don’t assume that your insurer is kindly allowing you to defer the premium. Your choices come with costs or qualify you for further savings. So, take your time to have a look at your options first and make the right decision. 

 Author: Nicki Shaw