Mistakes to Avoid When Getting Car Insurance

Getting car insurance is one of the smartest things you can do for your vehicle and finances. However, some mistakes have the potential to threaten the peace of mind that your insurance policy brings. The worst of these mistakes is to experience something you’re not insured for. The following tips can help you avoid getting into a situation like that.

Don't be underinsured.

Admittedly, paying insurance premiums can be a bit of a pain, especially if you have several other active insurance policies. This might lead you to try and drop some policies that you think are redundant and unnecessary in favor of others. However, that might not be such a good idea. Here’s why:

Your vehicle insurance policy should be based on the level of risk you’re exposed to. Dropping theft insurance is a bad idea if there have been reported cases of theft in your area.

It’s important to remember that auto insurance is supposed to actually protect you from stuff like that. A better way to save money is to try and negotiate your premiums or to see what other insurance providers are offering. You don’t want to drop your coverage when you need it the most.

Make sure you get all your discounts.

You can consider this an extension of the first tip, and it’s important because it helps you regain some of your money back. Insurance companies give discounts for things like installing anti-theft devices in your car or being accident-free. It’s important to understand these offerings and discounts because you may not get them otherwise.

Sometimes, your insurer may not give you your discounts until you request them. Just think of all the discounts you could have missed already! Before signing up for a scheme, ask for a full list of all the offers. You should then see which ones you can realistically get.

Find the cheapest way to pay your premiums.

When paying insurance premiums, most people prefer to pay monthly. That way, they can conveniently take it out of their salaries and pay as their checks come in. However, a better way might be to pay a lump sum.

If you choose to pay your premiums in an interval of six months, for example, you’re sure to spend less in the long run. The only problem you may have with this approach is the cumulative sum you’ll have to part with. Something you can do about this is to open an account for the insurance premiums and save up.

That way, the bi-annual payment won’t catch you off guard, and you can pay with ease.

Disclose all your drivers.

A sneaky way to tilt premiums in your favor is to keep information from your insurance company. Not disclosing other drivers and family members might feel like it can help lower your premiums. But then, if your insurance company finds this out, they may raise the premiums much higher or worse, they may drop your policy altogether.

Even if you successfully get on the policy, if any of these drivers get in an accident, the insurance may not cover the vehicle, since you weren’t at the wheel. That’s why you should disclose all your drivers.