Insuring a car should be a relatively easy and painless process. The process should happen quickly and without much variance in cost and coverage. It should feel like something you can do yourself and still come out on top.
However, the truth is that the world of car insurance is a pretty messy thing. It is a place where, without vital guidance steering you in the right direction (pun intended), it’s easy to get lost and make costly decisions.
Here are four common car insurance mistakes that you can avoid by following the vital guidance of those that are in-the-know about car insurance:
Not shopping around
The most straightforward error to make when buying car insurance is not shopping around. This tends to be a problem, especially for first-time car insurance buyers as they often go down the same route as their parents and use their company.
While it is easy to assume that all car insurance companies are the same, car insurance is not a ‘one size fits all’ solution. Shop around and look at several competing quotes to find the right fit for your situation.
Buying minimum coverage
Buying the minimum coverage can be an easy decision but not always the best route for many car owners. It’s as simple as seeing a low number on a page full of much higher numbers and grabbing that quote without a second thought. Life is already expensive enough, so why pay more than the minimum for something you (hopefully) won’t ever need.
While there are some situations where this theory works, there are more situations when it’s a huge mistake. For example, owning an old car and paying low insurance may be ok. However, if you own an expensive car, buying the minimum coverage may not be the best way to save on insurance cost because the minimum coverage may not be enough to repair damage from an accident.
Not considering customer service
Selecting an insurance carrier with great customer service is another area that you won’t realize is important until you need something done.
Sure, a company might be quoting you half the price of another, but what is that company like when an accident happens? Maybe they have a history of being slow to respond. Perhaps they don’t work on getting a loaner car for you. Maybe the repair shop they work within your area is known for its slow service. Look around at reviews online to see if the company is trustworthy to take care of your potential claims.
Not understanding the coverage
Research, research, research.
Ask all the questions you can, before thinking about things and asking a dozen more. Coverage is the most critical part of car insurance, yet it is incredible how few people can confidently talk about what their coverage provides. It is ideal to get some vital guidance on what your coverage is and, perhaps more importantly, what it is not.
Article by Vital Guidance