4 Mistakes People Make When Picking Car Insurance

Written By Jeff Hindenach
Last updated January 28, 2021

Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.

March 25, 2015

Simple. Thrifty. Living.

It doesn’t matter if it’s your first time or 10th time; choosing car insurance can be a confusing process with all the promises providers make and the multiple levels of coverage available. It’s easy to make a car insurance mistake. Lots of folks do. In fact, here are the four most common mistakes consumers make when shopping for car insurance.

Lots of folks look to big name providers, or they just go with the insurance company their parents use. This is a huge car insurance mistake. If you’re not shopping around and comparing prices with coverage, you can’t know if you’ve got the best possible deal. It’s always a good idea to get a couple of quotes before making a final decision on which company to go with. If you want to compare insurance quotes quickly, you can use our Insurance Finder below to find the best car insurance companies in your area.

Enter Your Zip Code to Find the Best Car Insurance for You:
Enter Your Zip Code to Find the Best Home Insurance for You:
Enter Your Zip Code to Find the Best Health Insurance for You:
Enter Your Zip Code to Find the Best Life Insurance for You:

Getting too little or too much coverage can cost you a lot when it comes to insurance policies. Too much coverage can have you overpaying for coverage you don’t need, and too little coverage can leave you exposed when something unexpected happens. You have to use common sense when it comes to choosing coverage levels. For example, if you’re driving a car worth less than $1,200 and there’s no lien on it, full coverage isn’t necessary. Be sure to do your research before signing up.

Your credit score can determine how much your insurance premium is, so making sure you have the best credit score possible will definitely help with saving money. Fix any mistakes on your credit report and try to negotiate some of the negative items on your report with your credit card lender. If you don’t want to go through the hassle or aren’t sure how to, you can look into hiring a credit repair company to do it for you. Here’s a list of the best credit repair services.

It never hurts to ask for a discount. If you’ve never had an accident, or you’re adding a high-achieving student to your policy, or if you’ve been with the company for a long time, you should ask for a discount on the premiums. It’s a big car insurance mistake not to. Most companies are happy to offer discounts, and you could come away saving hundreds of dollars on your insurance each year.

If you can avoid these four common mistakes when shopping for car insurance, you’ll find that your premiums will be lower and your coverage will be better. The main thing to remember is to read your policy and become familiar with it once you do have coverage in place. It’s always best to be prepared before you need your policy instead of waiting until after.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

  • No comments yet. Be the first to get the conversation started. Here's some food for thought:

    Do you have any thoughts?

Submit a Comment

Your email address will not be published. Required fields are marked *