Common Mistakes When Buying Car Insurance
Car insurance is one of the most important purchases that you can make. Despite this, many motorists end up making a mistake which ends up costing them a fortune down the line. It is vital that you get the right policy so that you are properly protected, but you will also want to save as much money as possible.
It is often the same mistakes that motorists make time and time again. Here are a few of the more common mistakes to keep in mind when shopping for your car insurance:
Lack of Research
Let’s be honest, car insurance isn’t the most thrilling purchase to make. Although it is not exciting, it is crucial that you set time aside to fully research and compare quotes. Many people will simply select the first policy that they stumble across to get it over with, but this could provide insufficient cover or cost more than necessary.
Before taking out an insurance policy, one of the best things to do is to look online for reviews to gauge the insurer’s reputation. They may have customer testimonials and awards on their website, but look elsewhere for any information you can find. With an insurer with a good reputation, you can rest assured knowing that you are in safe hands.
It is understandable why people choose the bare minimum level of coverage, but this is a decision that may well come back to haunt you. It is unfortunate, but accidents and car crime occur every single day no matter how careful you are. As with all types of insurance, it is better to be safe than sorry so you should look for fully comprehensive cover and optional policies.
Unaware of Coverage
Before deciding on a policy, you must take the time to read through and list everything that you are covered for and everything that you are not. It is common for a motorist to believe that they are covered for something, only to find out that this is not the case when they need it. This can be a very nasty and costly surprise.
If you are buying a used car, always check if the manufacturer’s warranty has expired or if it will expire soon (usually after three years or 60,000 miles). A used car warranty from a specialist provider is an intelligent investment as it will cover you for mechanical and electrical breakdowns, which can occur at any time. Even the best vehicles can suffer from one of these issues and the cost of repairs can be very high – this optional policy will protect you from this.
You may be tempted to lie to the insurer to reduce your premium (especially if you have had a few accidents), but this is pointless and could invalidate your claim. They will always check into your driving history and credit report, so be honest and shop around for the best coverage at the best price.
Failing to Take Advantage of Savings and Discounts
There are actually many savings and discounts to be had when shopping for automobile insurance. Although it may be a hefty sum, you can usually save huge amounts by paying the sum in full instead of monthly instalments. Insurers try to lure new customers in with discounts, so always ask for these for big savings. Insuring multiple vehicles under one policy, low mileage discounts, good driver discounts and bundling your coverage with home insurance are a few of the discounts typically offered.
It is essential that you take your time with car insurance and fully understand what you are buying. Avoid the above mistakes and you should find the right policy for a fair price.