When shopping for auto insurance, your goal should be to find the policy that provides the most value while still meeting all of your requirements. As a responsible adult and a person who owns a vehicle, investing in protection for your car is one of the wisest choices you can make for yourself. Some people don’t think it’s essential, but we do, and we think you should too! It’s great that you’re ready to get started and that you plan to get insurance. Let’s go over a few common pitfalls that people often fall into when shopping for auto insurance before you make a decision on which car insurance provider to go with.
Opting for the Least Expensive Option
Are you aware that opting for the car insurance policy that offers the lowest premium possible is the most common and costly mistake drivers make? It is! People frequently believe that purchasing the most affordable insurance policy is the best deal, but in most cases, this is not the case. In most cases, paying a lower premium for insurance results in a higher surplus payout and fewer overall benefits.
This means that although you might pay a low insurance premium, the excess that you are responsible for paying in the event of an accident may be significantly higher than it would be if you had paid a marginally greater premium. If you go with the plan that has the lowest premium, are you going to save money? Not at all.
Not Engaging in Competitive Analysis
When shopping for auto insurance, it is in your best interest to obtain insurance quotes from several different companies and then compare those quotes. Ignoring or ditching this step is not something that we recommend doing. Every insurance company has a unique set of deals and packages to choose from, and their prices and coverage options vary widely.
Insufficient Preparation in the Form of Research
The insurance coverage that is the least expensive is not necessarily the best, nor is the choice that is presented to you as the first available alternative. Always make sure to do some research on the various available plans, as well as a cost-benefit analysis, where you weigh the price against the benefits of the policies.
Neglecting to Check What is Protected
People will sometimes get a quote, then immediately accept it and take the offer of the insurance premium without asking any questions. If you do so, you will likely become perplexed later on whenever something comes up that you weren’t expecting or thought would’ve been covered. This will increase the likelihood that you will make a mistake. You run the risk of having to pay a higher excess than expected as well as additional fees for towing the vehicle.
Always make sure that you are completely aware of what your insurance covers. Inquire about what aspects of the price are included and what aspects are not. It is in your best interest to obtain as much information as possible from each potential provider. You can take advantage of the competitive insurance premiums that our team of experienced broker consultants has to offer, with each policy being tailored to meet your specific requirements.
Choosing Not to Use Theft Prevention Devices
Insurance companies strongly recommend installing an anti-theft device or taking additional safety precautions on your vehicle; doing so may even qualify you for a premium reduction. If you have a dashcam, steering wheel lock, or clutch lock in your vehicle, as well as a device that tracks your vehicle, your chances of getting a good deal on auto insurance go up significantly. Think about making an additional investment in one of these additional safety features so that you can get a better deal on your auto insurance and have more peace of mind about the safety of your vehicle.
Falsifying Information or Failing to Provide It
In any legal matter, it is an absolute requirement that you provide information that is both honest and accurate. If you provide false information, lie about your driving history, or fib about anything else, you will end up receiving an inaccurate quote and will have to deal with unneeded complications in the future.
A Failure to Report an Accident to the Authorities
If you are involved in a collision with another vehicle and do not report it to the police, you will not be given a case number, and as a result, your insurance company will be unable to process your claim. You should try to get a case number as soon as possible after the incident. This will not only get the process of filing a claim started, but it will also help ensure that the information you provide is as accurate as possible because your memory of the accident will still be fresh.
When information is updated, the same degree of decency should be applied. You are required to update the information contained in your insurance policy if you have recently relocated your place of residence or place of employment, increased the number of hours you spend driving, or allowed a member of your family to use your vehicle for their daily commute. If the information on your policy is incorrect and you are involved in an accident after which the truth is discovered, your insurance company will most likely cancel your policy, and you will not be paid for your claim.
Overlooking the Fine Print
Have you amassed all of the necessary information, gone through and compared the various quotes, and are you now prepared to purchase auto insurance? If so, my sincere congrats to you! But hold on there; before you rush into signing any documents, make sure you read over the terms and conditions first.
We understand that reading the terms and conditions is a tedious and time-consuming task, but if you don’t do it, you’ll come to regret it in the future. Before moving forward, you are required to read the policy in its entirety and demonstrate that you have read, accepted, and fully comprehended all of its terms. If you don’t understand something, don’t be afraid to ask questions. Insurance brokers will always be happy to assist you and take the time to explain the policies and procedures to you.
You can move forward with self-assurance now that you are aware of the typical pitfalls to steer clear of when shopping for auto insurance.