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.
Mistake #1: Not Shopping Around for the Best Deal
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 an aggregate service like Compare.com.
Mistake #2: Choosing the Wrong Coverage Levels
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.
Mistake #3: Not Fixing Your Credit
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.
Mistake #4: Not Asking for Discounts
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.