Shopping around for the best deal on car insurance isn’t just about selecting the company with the lowest costs. While price is always going to be a factor, buying the right type of coverage from a company that is right for your specific needs is more important. If you get it wrong, you may end up with a policy that provides either too little or too much coverage.
Here are the top 10 mistakes to avoid when choosing car insurance:
1. Not getting enough coverage: If you only focus on price when shopping for car insurance, you’re liable to purchase a policy that saves you money in the short-term but doesn’t provide adequate protection when you need it most.
2. Not knowing your policy: Take the time to thoroughly review a policy before you buy it. Most insurance companies will walk you through every aspect of your policy before you sign anything, but it’s ultimately your responsibility to know what’s covered and what isn’t.
3. Not receiving all of the available discounts: Most car insurance companies offer discounts for being accident-free and for having safety gear like anti-lock brakes, air bags, and automatic seat belts. Remember to ask about all of the available discounts and which ones apply to you. You may be surprised by how much money you can save.
4. Not having a good credit rating: Many car insurance companies check your credit scores to evaluate the risk of insuring you. If you don’t protect your credit rating, you may have to pay higher premiums.
5. Not bundling other insurance. Insurance companies typically offer discounts for combining homeowners insurance or renters insurance with your car insurance policy.
6. Not opting for a higher deductible: Agreeing to pay a higher deductible typically reduces the cost of your premiums. Unless you get into an accident, you can save a significant amount of money on your car insurance every year.
7. Not getting everything in writing: What happens if you are quoted one amount but then receive a bill with a different number? Never commit to a car insurance policy until you understand all of the details, and then make sure you get the terms and conditions of the policy in writing. This will minimize confusion in the event of a claim.
8. Not getting the most sensible coverage for all cars: It may not be worth it to buy collision or comprehensive coverage for an older car if the cost of the premium far outweighs the car’s value. Also, keep in mind that a second car or a collectible car will typically have a different rate.
9. Not being honest: Another common mistake while shopping for car insurance is failing to disclose all previous claims, tickets, and accidents. If the company finds you have been dishonest about your driving record, it can deny you coverage or raise your rates.
10. Not getting a new quote every year: Your driving patterns may change and your insurance company may change its rates as well. Take a few minutes to check-in with your agent to see if you can make any cost or benefit changes.
Learn more about buying the right type of car insurance for you and your family by visiting calling 562.498.8661.
Kelly Williams is the president of Kelly Williams Insurance, a boutique, full-service insurance agency specializing in all lines of insurance including auto, home, life, health, and business. Kelly Williams Insurance was founded in 1895 and is based in Long Beach, California. The insurance agency also serves Orange County and Los Angeles County. Visit or call 562.498.8661 to learn more about the company’s personal and business insurance products.
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