5 Mistakes to Avoid When Buying Car Insurance

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It’s a no brainer to ask people that have been in your shoes for mistakes they made that you can totally avoid. Students, politicians, and leaders generally do this. And so should you in your car insurance journey.

Whether you’re buying for the first time or considering a switch to a different company for whatever reason, there’s a lot of opportunities for mistakes to happen in the process. Mistakes that could cost you dearly and have you sitting regretting not taking the time to learn from others’ experiences.

This article will walk you through some of those mistakes, so you can navigate the car insurance landscape more confidently.

Settling for Low Offers

If you get into an accident and your car is damaged, perhaps beyond repair, your insurance company will swoop in with documents containing a settlement offer. More often than not, this offer barely covers the cost of a decent replacement. And you, being green, may be eager to put the incident behind you and just accept the low-ball offer. Don’t.

Instead of being hasty in your decision, carefully assess your situation properly. Gather evidence that the proposed car replacement value is (significantly) lower than actual value. How? Get in touch with dealers and get quotes from them. You can also check listings for similar cars for sale.

Know your rights and don’t be scared to contest the insurance company’s offer with your estimates and research. And remember, once you cash that settlement check, your negotiating power goes with it.

Mishandling Claim Reports

Insurers are tricky and actively looking for loopholes to hold onto your money. That’s why you don’t have to report every minor incident to them, even if you do not intend to file a claim.

I know a guy, Mark. He noticed a small dent in his car and called his insurer to inquire about it. Eventually, he decided not to file a claim. A few months later, when renewal time came around, he was shocked to see his premium had increased. Who would’ve guessed reporting such a harmless incident would have such an effect on his record?

Learn from Mark’s experience and consider every incident before reporting because any report can appear on your insurance record and definitely will affect your future premiums.

If you absolutely need to file a claim, double check the details. Accuracy is key, literally. And review your insurance history regularly to be prepared to dispute any accuracies with reporting agencies like LexisNexis.

Paying Insurance on the Wrong Car

Finding out the insurance you’ve got is for your old car only when you get pulled over for a routine check has to be one of the most embarrassing moments ever. And then facing a hefty fine…I’d cry.

You’re probably thinking that there’s no way you could ever make this mistake, but you’d be surprised how often this happens. The dealership could list the wrong VIN (Vehicle Identification Number) in your insurance policy and have you paying for the wrong car.

So, make sure to double-check that the VIN on your policy matches your current vehicle. Updates or changes to your policy must be accurately recorded. Doing this simple step can save you from fines, complications with claims, and even potential legal issues.

Choosing Inadequate Coverage

Most people think that the legal minimum required insurance coverage is enough for all their needs, and they can’t be further from the truth.

Yes, it might seem cost-effective to just get a deal that’ll glaze the government’s eyes over you, but it can leave you vulnerable if you’re ever in a serious car accident.

That’s why choosing the right level of coverage is super important and requires the right level of balance. Consider your circumstances. Do you commute long distances? Is your area prone to natural disasters? Is your car a classic or a recent model? Your coverage plan should consider your needs, wants, and risks. It would be a nightmare to get into serious trouble only to find out your policy’s limits don’t cover the damages.

With auto insurance same day, you can compare policies so you know which one’s best fit your needs and budget.

Assuming Low Risk Guarantees Low Premiums

Let’s say you’ve got down all the basics like a spotless record, a job, a marriage etc. You’d think this would automatically translate to the lowest possible premiums. Though these things certainly help, it’s not the whole story.

Unfortunately, insurers have a minimum premium threshold, no matter how clean your driving history is. Even if you haven’t had an accident in years, your rate might not drop as much as you expect.

So, always check your rate for any pricing errors or discounts. Ensure they’re legitimate and that they would be honored in the long term. The last thing you want is a surprise rate hike a few months down the line.