Mistakes to Avoid When Buying Automobile Insurance
Mistakes to Avoid When Buying Automobile Insurance
Article by Leo Chu
When you are buying automobile insurance, there are mistakes that would prove to be costly. You may end up regretting that you could have saved thousands of dollars if you could have only known. You don’t have to learn the hard way through experience. Read on and save thousands.
1. Not Comparing Premiums
According to surveys conducted between 2001 and 2006, the price of a six-month car insurance rate varies from 1 to 6 on average. A driver may be paying a ,256 premium for an insurance policy, whereas similar coverage from other insurers only costs 0.
Take some time to compare prices from various automobile insurance companies. Prepare a list of questions to be asked to each insurer to get the right quote for the desired insurance coverage.
2. The Cheapest Insurance is the Best One
Premium is not the only thing to consider when buying a car insurance. The type and amount of coverage, riders, quality of customer service, and reputation of the insurer are also worth considering.
3. Choosing a coverage based on the minimum limit imposed by state rather than the type of vehicle to be insured
Consider extending your coverage beyond government imposed limits to maximize your protection from collision claims that may be too large to be shouldered by such minimum coverage. An owner of a sports utility vehicle or larger models with only a minimum insurance coverage may not be fully protected in events of collision with smaller cars. When choosing a coverage limit, consider the cost of damages that may be possibly claimed against you in the event of car accident.
4. Lying about driving records
Those who inaccurately report their driving history may enjoy lower premiums at first, but it will not take long before automobile insurance companies discover their undisclosed speed tickets and other traffic violations. Failure to properly disclose such information may further increase premiums.
5. Buying coverage that is already available in other financial products
Before buying coverage, first check your manufacturer’s warranty to avoid wasting money on duplicated coverage. Chances are towing expenses are already covered by warranty, thus, there is no need to buy a Roadside Assistance coverage. If your health insurance covers claims arising from injuries and accidents, you may opt out of Personal Injury Protection and/or Medical Payments coverage in your car insurance, provided that they are not required by the government. Custom Parts and Equipment coverage is not necessary when the critical spare parts of your car are newly repaired or upgraded. Finally, Loan/Lease Payoff coverage might have been offered already by your finance company, so there is no need for such protection in your car insurance. These items are possibly added to your monthly car amortization.
6. All automobile insurance companies are the same
Do not assume that all insurance companies offer the same products. Each varies in terms of price and coverage. Remember that not all insurance companies can fully cater to the needs of each kind buyer.
About the Author
automobile insurance is far from expensive, as long as you know where and how to get it. The key here is to compare insurance quotes and you will surely find low cost car insurance. AutoQuoteNow.com will help you do just that in no time!
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