Let’s face it, buying an auto insurance policy is just as difficult as it is necessary. You need car insurance to operate a car, but since it is very expensive and complicated, it is very difficult to find the best car insurance policy for the price you pay.
If you are in the market on the lookout for a great car insurance policy, this article will help you a lot in avoiding some of the major mistakes most beginners make while buying auto insurance.
So get your notebook out and start taking notes to make sure your money goes in the right place. Do note that this article is not about buying the cheapest policies as price should never be the only factor when buying important car insurance coverages.
This article is about getting the most out of your auto insurance policy. Let’s look at all the things you should avoid while buying auto insurance.
Buying without Comparing
The biggest mistake that anyone can make while buying not just auto insurance, but anything, is spending their money without comparing the options. Even when people are buying groceries, they spend a good amount of time comparing the options to get the best out of their money. So why skip this part while buying insurance policies worth thousands of dollars?
With the help of the internet and hundreds of great websites that allow people to get a detailed comparison of all the different auto insurance companies and what they are offering, comparing policies, coverage options, and their reviews have never been easier.
Before you buy any policy, compare all the plans carefully. Look at the coverage options, their reviews, how long the claim processing takes, etc. Only this will help you make the right decision. Get more info about the price of the policies and select the one that offers the best coverage at the lowest price.
Remember not to get tempted by low prices as many insurance providers are selling cheap but terrible policies. Focus more on the price-to-coverage ratio. This will avoid you from making the biggest mistake while buying auto insurance.
Buying without Needing
Now that you wouldn’t buy without comparing, here is the next mistake that has taken many. People buy policies without ever needing them. This results in them spending hundreds of dollars without any real benefit.
Let’s take a look at all the different ways you can buy car insurance policies without ever needing them.
Collision Coverage: Collision coverage covers the cost of repairs needed after your car gets into a collision accident. Accidents with other cars, crashing into trees, poles, etc, or just damages due to poor road conditions are all covered under this policy.
Collision coverage is great for new cars that require a fortune to fix. But for cars that are old and used, spending hundreds of dollars just to insure them is not worth it. You are better off paying for the repairs from your pocket than making an insurance claim and getting your insurance rates hiked.
If your car is over 8 years old, it is better to skip collision insurance. Yes, you might get in a car accident, but paying for the repairs yourself would still be cheaper than getting collision coverage and paying yearly premiums.
Comprehensive Coverage: Comprehensive coverage covers the cost of repairs for all the damages due to natural disasters. Again, just like collision coverage, it is worth it only if your car is new. Any car older than 8 years is not worth insuring if you do not want to spend too much on car insurance policies.
So instead of paying hundreds of dollars for comprehensive insurance, it is better to get a secure, covered garage and keep your car safe from natural disasters and theft.
Don’t get us wrong, roadside assistance is a very important add-on that can help you in specific situations. But it is only worth buying if you are going on a long road trip or you occasionally go on one long road trip. For your day-to-day commute to work and back home, RSA is not worth it.
For the people who do not know, roadside assistance adds special features to your car insurance such as tire changing services, car winching, battery jumpstart, towing, etc. But how many times do you get a flat tire while going to your workplace or the grocery store?
Mileage-Based Auto Insurance
Have you ever thought about switching to a mileage-based car insurance policy? With the shift from working from the office to working from home, many people have found comfort in working from their homes, and this has reduced their mileage drastically. So why pay for general car insurance when you can save money by opting for pay-per-mile auto insurance?
Pay-per-mile auto insurance only charges you for the miles you have driven during the policy period. A base rate is calculated based on different factors like your driving record, gender, age, etc. This base rate is then multiplied by your monthly mileage to determine your insurance cost.
So if you drive less, you pay less. Switching to pay-per-mile auto insurance can help you save hundreds of dollars while retaining the excellent coverage features.
Not Adding Family Members
If you have family members who either drive your car regularly or occasionally, it is better to add them as registered drivers in your car insurance policy. This is important because if they cause a crash and are not registered drivers in your policy, the insurance company can and will reject your claim.
Adding them as registered drivers will increase your insurance premium rates, but that is not nearly as much as paying for the car repairs from your pockets if your insurance claim is rejected.
So these were the major mistakes that you should avoid at all costs to prevent getting into both legal and financial troubles. Be a smart driver. Stay insured and secured.