5 Common Auto Insurance Mistakes
When it comes to auto insurance, most of us make mistakes. Lets face it – auto insurance is boring. We see it as a necessary evil that we just have to deal with.
But is it possible that you can save time, money and get the coverage you need by avoiding these common mistakes?
1. Failing to keep a clean record
A clean driving record is one of the things we appreciate only after you losing it. Every point that you lose. Every tiny accident that you are involved in. Every time you get a parking ticket – your insurance premiums increase.
You are late for an important meeting, have a plane to catch or just having one of those days. So you break the speed limit by 10mph. Overtake a bit dangerously. I mean, who hasn’t done that? And that is the point – everybody does it. We don’t even consider how it may affect our record and insurance rates.
Next time you are about to do something silly on the road, just imagine adding another $100 to your monthly insurance bill.
2. Driving uninsured
According to recent research, in some states nearly 1/4 of the drivers are uninsured. That’s 25%! No wonder hit and run accidents are a daily occurrence. And most of these uninsured drivers don’t even know it is illegal. That’s right. In every state in America auto insurance is required by law.
If you get caught driving without insurance, you will lose your license, have to pay penalties and in some cases even go to jail. But that’s not all.
Imagine you can’t drive yourself to work? How about picking the kids from school? Can you afford to take caps everywhere?
It gets worse. If you cause an accident, you are liable to pay for injuries and damages. There are cases when people have had to re-mortgage or even sell their houses just to deal with such a financial strain.
Driving without insurance is not a way to save money. Its rather a sure way to lose money. Eventually.
3. Driving under the influence
Nothing increases insurance premiums like a DUI conviction. Every state has implemented harsh laws to deal with drunk driving. Its estimated that a first DUI offense can cost you as much as $20,000 in penalties, increased insurance premiums and attorney fees. How many taxi rides can you take for that much cash?
Even if you end up in a bar with your car outside and you don’t want to leave it there, but still want to have a drink – you can. Just make sure there is a local company offering this new fantastic ‘drive me home’ services. They simply come to where you are and drive you home in your own car. How great is that?
Sometimes we tell ourself “I have only had one, I’m fine”. Is it worth the risk?
4. Not choosing the right coverage
Car insurance can be confusing. Insurance agents like talking in jargon and make themselves look important but that doesn’t help us choose the right coverage. Here are the main things you should consider.
What are the auto insurance requirements in your state? That will give you an idea of what is the minimum liability you need to purchase. The truth is that these limits are often quite low and won’t be enough if you cause a major accident. Try increasing them to a level you are financially comfortable with.
Do you need additional coverage? If your vehicle cost a lot of money or you are still paying for it, you may want to go for full coverage. It basically combines collision and comprehensive coverage. That way, even if you crash your car, you won’t have to pay for the repairs yourself.
On the other hand, don’t include such coverage if your vehicle is not worth it. Don’t let a commission hungry insurance salesman push you into making a decision you are not comfortable with.
5. Paying too much
Do you think you got a good deal on your car insurance? You are most likely wrong! Over 70% of us pay too much. Fact. Why? Mostly because we find excuses not to look for the best deal.
“I don’t have the time to chase insurance companies all day” or “They all charge the same anyway” are just some of them. But when you work all day, sometimes more than one job, wouldn’t you consider spending a few minutes comparing insurance quotes? It may save you up to $450! How many of us make that much in a day?
Failing to ask for discount is another reason. There are a dozen different types of discounts insurers are willing to give, just to win your business. From good student grades to safe driver. Even just for being a new customer. All you have to do is ask.
Wondering if you can get a cheaper auto insurance? Find out now