Shopping For New Auto Insurance? 3 Mistakes To Avoid

After I was involved in a large auto accident a few years ago, I realized that I was about to become innately familiar with the claims process. Sure enough, within a few months I started to receive paperwork regarding my accident, and it was really interesting to see how my insurance company handled things. I was able to save a tremendous amount of money by talking with agents about covered and non-covered claims, and it really opened up my eyes about the entire insurance coverage process. Check out this blog for great tips on saving money, living better, and receiving the coverage you need.

Shopping For New Auto Insurance? 3 Mistakes To Avoid

28 September 2018
 Categories: Insurance, Blog

Owning a vehicle will be costly. Not only will you need to purchase and maintain it, but insuring your vehicle will also be necessary. Car insurance policies cover a wide range of issues, including personal injuries, vehicle and other property damage, and even theft. Even though it is legally required, most drivers do not fully understand their insurance policies. If you are currently shopping around for a new auto insurance policy, here are a few mistakes you need to avoid.

Focusing Only on Price  

Focusing on price is important, but cost should not be the only factor you take into consideration when buying a new insurance policy especially since the least expensive policy will most likely not offer the coverage you need.

Most insurance companies will price a policy based on the minimum coverage amounts to ensure you get the most affordable deal. Unfortunately, this "affordable" policy may end up costing you a lot of money in the future if you are ever in an accident.

Consider adding optional coverage to your policy. Even though the optional coverage, such as collision and comprehensive, will increase your premium amounts, it can be a worthwhile investment.

Buying Minimum Limits

Each state has their own specific requirements on how much coverage you need to carry. Again, the minimum amount of coverage may be most affordable, but it will most likely not help you in your time of need.

For example, North Carolina requires all drivers to carry minimum liability limits that include $30,000 for bodily injury liability, which is per person per accident, and $60,000 of bodily injury liability for the total accident. $25,000 of property damage per accident is also required.

You may think these minimum amounts are sufficient, but most people are surprised by how high the cost is for vehicle damage and medical bills after an accident. Consider higher limits a great investment for your financial future.

Not Asking about Discounts

Not asking for discounts is another common mistake many people make when buying auto insurance. Most companies will offer some sort of plan that discounts their premiums.

Discounts may be rewarded if you bundle your insurance policies with the same company. Having your auto, homeowners/renters, and life insurance policies all with one company is not only cost-effective, but it is also more affordable.

Paying your premiums in full early can also award you discounts with some companies. Safe driving discounts and good student discounts may also apply with your company.