Six Pitfalls to Avoid When Buying Car Insurance

When you’re shopping for car insurance, you should ensure that you get the right policy for you and your loved ones. This way, you’ll be protected if you are involved in an accident or if your vehicle is damaged or stolen.

Besides, you’d like to save as much as you can, while ensuring you don’t compromise on your coverage as stated by Law Office of Matthew L. Sharp.

No matter the type of car you’re driving, getting the right insurance cover is a must. Whether you’re planning to buy a Porsche or the ugliest car in the world, you’ll still need to insure it.

And since car insurance is not something you shop every day, it’s understandable if you’re not familiar with the process. For you to get the right coverage at a reasonable price, you need to know which questions to ask your insurer.

Here are some common mistakes you should avoid when buying commercial car insurance:

Let’s get started:

1.       Not Shopping Around

Since all insurance companies are not created the same, this is worth repeating. Some insurance companies may be offering good services but at a higher budget. Others may have discounted prices but their services are lousy. What’s more, you can feel more comfortable with some insurance agents as opposed to others.

Be sure to choose a policy and level of protection that you’re comfortable with. Contact or even visit different insurance providers, or better yet work with an insurance broker who has vast knowledge on the best coverage from various insurers.

2.       Only Purchasing the Minimum Coverage

Not getting enough coverage does not only sound wrong, but it’s also dangerous. It’s like messing with fire and then expect the universe to correct your mistake.

Even if you are adept at avoiding vehicle accidents, you should not play a chance with your finances.

Getting the minimum insurance option will not cover you against most accidents, especially the ones that cause severe damage. While you’ll be paying higher premiums for the right car insurance, considering the amount of coverage you’ll get, it is a worthy investment.

3.       Not Updating Your Policy

It is important to inform your insurer if there are changes to your car or even its usage. For instance, when you add another driver or if your car is stolen or is involved in an accident, you should inform your insurance company immediately.

Also, don’t forget to notify your insurer if your vehicle undergoes significant upgrades that affect its value.

Lastly, inform your insurance company if you’ve changed the way you use your vehicle. For instance, change in the number of kilometers you drive in a year or if you’re using your car for business purposes.

4.       Failure to Your Pay Premiums on Time

Failure to pay premiums on time can make your insurance company cancel your policy. While you’ll get a notification in your email when your premium is past due, you shouldn’t rely on that.

When your policy is cancelled due to failure to pay your premiums on time, you’ll find it challenging to find another insurance company due to your record. We would advise you to preapprove automatic payments from your bank account to avoid missing the deadline. This way, your premiums will always be paid on time.

5.       Not Choosing the Right Deductible 

Deductibles are the trickiest thing when it comes to pitfalls to avoid when purchasing car insurance. Depending on what kind of driver you have, you can choose a lower or a higher deductible.

If you think you or your driver, is prone to accidents, then it may be advisable to choose a low deductible. While you’ll be paying higher premiums, you’ll pay less should you make any claim.

If you think you’re a responsible driver and the likelihood of getting in an accident is rare, higher deductibles may be ideal for you. Here, you’ll pay less on premiums, but your insurer will cover less when you make a claim.

If you’re still confused, be sure to talk to your insurance agent to help you determine what deductible will work best for you.

6.       Considering Only the Price

Just like any other complex thing, buying car insurance based only on price is not recommended. As you’ve seen earlier, you should look into various aspects including types of coverages, deductibles, discount options, premiums, additional offers, among others.

Don’t be afraid to talk to your agent about what you’ll be getting with your insurance policy. Ensure you’re prepared, know what questions to ask, and know what you’re buying – don’t just consider the price.

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