Buying insurance can feel similar to buying a new car, overwhelming with so many great options available. It just feels like another adulating chore. You pick a provider, check a few boxes, and you’re done. Right? Not quite.
The truth is, most people rush through it and end up overpaying, underinsured, or just confused. Here are seven common mistakes people make when shopping for car insurance.
Not Comparing Different Quotes
The biggest mistake new car owners make is not comparing multiple car insurance quotes. Most people accept the first offer they get, thinking that it can’t get better than this now.
But rates vary widely among insurers, even if you’re going for the same coverage. By getting multiple quotes, you can save thousands of dollars and get better coverage.
Going for the Cheapest Option
Usually, car owners look for insurance that is cheap because they don’t want to pay a huge premium every month. Hover, that’s the wrong approach.
Low-cost policies often come with high deductibles or limited coverage, meaning you’ll pay more out-of-pocket after a car accident.
Skipping Optional Coverage that Might Help
Many people skip collision or comprehensive coverage to lower their premiums. But if your car is stolen, vandalized, or damaged in a flood, you’re out of luck.
Optional doesn’t mean unnecessary. Consider your area and lifestyle before unchecking boxes.
Not Asking for Discounts
Yes, discounts are also available for insurance policies, but you’ll need to inquire about them. You may be eligible for these savings if you have a good driving record, use our car less, or are a student with good grades.
Even adding a telematics device can lower the rate. So, never hesitate to ask for discounts.
Lying on the Application
If you’re thinking of lying on your application just to get a better rate, it could backfire. For the time being, you’ll be happily paying a lower premium.
But when the time comes for a claim after an accident, the insurance company can deny you coverage based on where you are and what lies you’ve added to the application. Some people don’t even disclose the modifications that haunt them later on during the claim.
Not Updating Your Policy
Sometimes, people forget to update their policy based on their life situations. They might have gotten a new job, moved to another city, or started their own business.
All these details need to be disclosed on the application so that they don’t cause any problems later on.
Forgetting to Re-Shop Each Year
Most people buy car insurance once and don’t revisit it. But with time, rates change, and new competitors enter the market. This also increases the quality of deals available, for which you may now be eligible.
Make it a habit to re-check your car insurance quotes every 12 months, especially before renewal. You might also secure a better job, which means you can now afford more comprehensive coverage.
Summing Up
The difference between a smart buyer and an unprepared one can mean hundreds in savings or a world of regret after an accident. So take your time, ask questions, and shop around for the best quotes. It’s not the most exciting thing, but you’ll thank yourself in the future for making the effort.
