Car Insurance Mistakes That Cost You a Bomb
Picture this. You finally bought and got your hands on the car you saw at the Beverly Hills Car Club. This was the car you’d been dreaming of. You’re excited to drive it. Since you love it so much, you don’t think much, and you immediately set out to purchase car insurance. However, after signing up for a plan, you realize that the premium amount is too high or that certain features are missing from your coverage. That’s when you start realizing all the car insurance mistakes you made. Car insurance can be quite tricky if you don’t understand the process. There are certain mistakes that can cost you a lot of money and put your vehicle at risk as well. Read on and learn to avoid them at all costs.
Skipping an Apple-to-Apple Comparison
The number one mistake that most people make is not to perform an apple-to-apple comparison of the various car insurance policies and plans. Many people just settle for the first policy they come across and end up paying more in premiums than what they should have paid. Before you purchase a car insurance plan, it’s important to compare similar policies from various providers.
Ignoring the Deductibles
Deductibles, also known as excesses, are the amount you pay out of your pocket every time you make a claim. A higher excess means lower premiums and vice-versa. Many people overlook this aspect to keep their premium rates low. However, it is important to consider the deductibles before signing up for an insurance policy. A higher deductible reduces the liability of the insurance company, and therefore, they provide lower premiums. Ignoring deductibles can increase your premium amount significantly in the long run.
Not Checking for Discounts
Many car insurance providers offer discounts on their plans. Before signing up for an insurance policy, it is more than important to check if any discounts are available and how much they can save you on your premium amount. Discounts may be offered due to various factors such as age, driving experience, vehicle type, etc. So check with the insurance company to get the most out of your policy. Not only will it save you money, but it will also give you more coverage.
Not Utilizing Car-Safety Features
Most cars now come with safety features such as airbags, anti-lock brakes, etc., which can help lower car insurance premiums. Make sure to check with your insurer if they offer any discounts for such features. Aside from that, be aware of potential car theft and take the necessary steps to protect your vehicle. Installing anti-theft devices, parking in a well-lit area, or using an immobilizer can help reduce the chances of theft and make you eligible for discounts as well. You can’t just rely on the coverage you have.
So what’s the upshot? Be sure to do your homework before signing up for an insurance policy, and make sure you explore all the options available. You can save a lot of money if you know what mistakes to avoid. Knowing the above-mentioned car insurance mistakes will help you get optimal coverage at the right price.
