Shopping for affordable auto insurance-4 Mistakes you must shun
Purchasing wrong coverage is one of the costly auto insurance mistakes people often make. This single mistake makes the people pay more than what they have intended to in the long run. Read along to know about some costly mistakes you should avoid while shopping for an affordable auto insurance policy.
Costly auto insurance mistakes
Here are the costly auto insurance mistakes you should never commit:
1. Giving more importance to the payments rather than the coverage
Individuals often give more importance to the insurance cost than the coverage type and amount. They are happy to get a cheap or affordable auto insurance policy. They purchase only the minimum coverage as required by the state laws. The main problem comes when the policy holders get involved in a major accident. The minimum coverage does not provide a full financial compensation when the policy holders’ luxurious vehicle gets damaged in an accident. This means that the policy holder will have to bear the expense on his own.
2. Not checking the reputation of the insurance company
Check the reputation of the insurance companies when you are shopping around for an affordable auto insurance policy. Don’t give importance only to the coverage and the premium rate. Find out what the existing customers have to say about a particular insurance company. Go to the insurance forums and get useful information if required.
If you a buy a policy from an insurer who has loads of complaints against him, then you may get into financial troubles in future. The insurance company may compel you pay extra money for the car repairing.
3. Not giving accurate information to the insurance company
Many a times, individuals don’t give the accurate information to the insurance companies for getting affordable auto insurance policies. They assume that the insurers will believe their statements blindly. These individuals are absolutely wrong. The insurers will investigate the applicant before accepting their application.
So, if you are planning to buy an auto insurance policy, then you should give the correct information to the insurance company. Disclose your credit and driving history correctly. State the number of claims you have made in the past truthfully. Don’t forget to mention the exact number of drivers who will be driving your vehicle. If the insurance company finds that you have lied to them, then they will hike your premium rates.
4. Not knowing what the other insurers are charging
You should shop around before zeroing down on a particular auto insurance policy. Check the insurance quotes before purchasing a policy. Know what the other insurance companies are charging for the same policies. Otherwise, you’ll surely end up paying more than what others are paying for the same coverage. It is best to secure minimum 4 quotes at the time of buying or renewing an insurance policy.
Finally, not many people understand the intricate aspects of the insurance products. Some people purchase the products recommended by the insurance companies. They think that if the insurance company is specially recommending the product, then it must be good. These people buy these products without even understanding them and often waste money.
Some insurance companies often tell lies to the people to sell the products. They can do anything for making money. This is why you should not blindly purchase an insurance product without even understanding it. Know the key details of the product from the insurance agents or from an industry expert.
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