The 3 Mistakes To Avoid When It Comes To Car Insurance
Owning a car is a major expense. It is second only to owning a home as far as the percentage of our paycheck that gets devoted to it. People are always looking for ways to save money when owning a car. One of the expenses that people hate to pay is insurance. It seems like the money is spent for nothing. Until you have an accident, that is.
The problem is that many people are making a number of mistakes when it comes to their car insurance and it ends up costing them money. Paying insurance is unavoidable, but paying too much for it isn’t. This article will go over several of the mistakes to avoid so you don’t pay too much for your car insurance.
1 – Not shopping around
Many people just accept the first quote that they get from an insurance company. Or, they just keep renewing their current policy with their current provider. This is a big mistake since there is almost a better quote out there for you if you simply shop around.
When your current insurance is about to expire, talk to a car insurance specialist and see what they have to say about what you are currently paying for your coverage. There are many ways to save by doing this as they will search through your policy and see if they can beat the price you are currently paying.
The other factor that often gets ignored is that an insurance agent will usually get a bonus if they are able to poach a customer from their competition. By calling around you will inevitably find a person that is able to finagle a lower price for the same coverage or better.
2 – Getting too much coverage
If you are paying too much for insurance, chances are it’s because you have coverage for things that you don’t need. For instance, you may be paying for hail damage in an area where you may get a hail storm every few years. There is such a small chance of getting damage from something that rarely happens in your area that it doesn’t make sense to pay for coverage for it.
Make sure to go through your policy to see exactly what you are paying for. You may be paying for roadside assistance when you already pay for AAA.
3 – You’re a bad driver
Bad drivers pay more for insurance. Unfortunately, they also drive up the costs for everybody else. If you are an aggressive driver and get a speeding ticket or other moving violations then this is having a big impact on your insurance premiums.
Accidents will also put your insurance costs through the roof. You may even have trouble getting a provider if you are in a lot of accidents since there is a high risk for them. Make sure to practice defensive driving techniques to avoid accidents and reduce the risk of speeding tickets.