Most people make an effort to make certain they are getting a good deal on the right car insurance policy; after all, it’s an expensive but necessary part of driving. But even those who are conscientious about it can make costly mistakes; and if you aren’t putting much thought into your insurance policy, odds are good you could be over paying on several fronts. These common car insurance buying mistakes are the most likely to be hurting your bottom line.
Not Shopping Around.
It seems obvious, but many people only shop around for car insurance when they first buy a new vehicle, and some don’t even do it then. A lot of people stay where they are because it’s comfortable they know the company, or it’s the same company other family members use. There’s nothing wrong with loyalty to an insurance company, but in some cases it can be costing you more than you think.
Car insurance rates change all the time, and what is the best company for one driver may not be the best company for another driver. In fact, in most cases taking the time to shop around can yield a better rate. Sticking with the same company does come with benefits like loyalty discounts, but there may still be a better deal out there. Shopping around on a yearly basis, usually at renewal time, is the best way to stay on top of rates and make sure you’re getting the best price. You might wind up staying where you are, but you can do so with peace of mind knowing you’ve got the best policy and best rate for your needs.
Missing Out On Discounts.
Discounts are the number one way to bring your insurance rates down, and most companies today offer a wide range of discount options that can help just about any driver at any stage. But if you are assuming that the insurance company is automatically giving you every discount for which you qualify, you could be making an expensive mistake.
While some discounts are automatically applied to your policy, such as multi-policy discounts, some may not be. That is because the insurance company may not be aware that you qualify or may require documentation from you to apply the discount. Some examples of this are the good student discount which generally requires that you provide transcripts to show a certain grade average, or the security system discount which may require proof of installation of a security system on your car.
Not Quoting Before You Buy.
When you are shopping for a car, you may not think too much about how much that car costs to insure until you get the bill. But getting some insurance quotes while you are comparing models is the best way to avoid an expensive insurance rate.
Every model is a little different, and some may be wildly different. When you are narrowing down your choices, getting car insurance quotes on your different options can help you make the right choice to save you some money on your premiums.
Selecting Low Deductibles.
Most people think that a lower deductible is the better choice; after all, you don’t want to pay a large amount of money out of pocket when you have been in an accident. That does make some sense, but it’s important to have a better understanding of how deductibles work and how they can save you some cash simply by raising them.
A deductible maybe applied when you claim under your collision or comprehensive coverages. That means that you have either been determined to be at fault in an accident or you have had a non-accident claim such as vandalism. In most cases, raising the deductible on your collision coverage can save you a lot of money on your premiums, and as long as you go without an at-fault accident that’s money in your pocket. It only takes a few years with a good driving record to make the higher deductible more than worthwhile.
Not Reviewing Your Policy.
When that renewal paperwork comes in, you probably glance at the rate and don’t look at more closely. But taking the time to review your policy for accuracy can save you a lot of money.
Look for things like the right commuting distance and status on cars, the right driver on the car they use most, and to ensure tickets and accidents fall off when they should. Keeping on top of your policy can help you avoid simple inaccuracies that can cost you big money.