Common car insurance errors to avoid

1. No preparation

Before you rush to the market and ask for some quotes, prepare all the necessary information and write them down on a piece of paper. The information may contain personal information such as age, address with postcode, occupation, car model and year, etc. Some companies will even require credit scores and driving history information. Depending on where you live, please contact your local DMV for the minimum coverage required for each driver. It prevents you from buying the wrong coverage and wasting money. Deductibles also play an important role in determining your premium. High deductibility usually means a low premium fee and vice versa. You must prepare to answer the question before requesting quotes and make a proper comparison between them.

2. Do not compare quotes

Some of your friends probably recommend that you buy insurance from some companies. It may be a good idea as long as your friends have not had any problems with the premium, the claims process, customer service, etc. It is still unwise to choose insurance companies based solely on someone else’s recommendations. The best thing you can do is contact as many companies as you can and ask for quotes from each of them. Most insurance companies now allow you to request a quote online, and the whole process only takes 10 minutes or less. Use the printed version of the quotes to make an accurate and thorough comparison. The total cost of the estimate from company to company is more or less the same, but the small details can make a big difference that differentiates the bad and good insurers, such as discounts, payment method, the use of credit points to determine price, etc.

3. Leave discounts

All insurance companies have discounts for customers. There are many different discounts available including for driver, active military personnel, good student and safe driver. Discounts are provided for those who took defensive driving courses, package other types of insurance and more. The total price reduction with the discounts can be quite a significant saving. Eligibility requirements may vary from company to company, but you can always ask an agent questions. Try to make the necessary requirement to be qualified and save a lot of money.

4. Leave all concerns for captivity

One of the worse car insurance errors to avoid is using a jailbroken agent to decide and recommend what is best for you. Remember that the captive agent works for the insurance company and the agent will probably receive a commission for each sale. This leads the agent to strongly convince potential customers to buy insurance from a certain company that is also the agent’s employer. In most cases, the catcher’s opinion towards the insurer will be biased as the only motivation is to sell instead of the customer’s satisfaction. An independent agent is more reliable because he / she works for you, not any insurance company. The agent’s knowledge of insurance and all related issues can be helpful resources for you to consider everything before making a choice. An independent agent works for the benefit of the customers. Such an agent may cost you money, but you are free to negotiate the price of the services.

5. Payment in installments

In some cases, paying in installments is an easier way to manage your monthly expenses. But the total extra cost is probably too much compared to the paid in full option that the installment is not even worth the gap. There is also an administrative cost to split the payment. Pay if possible to save money. It may sound contrasting, but it really is the cheapest way to pay insurance premiums.

6. Not to choose a reputable carrier

Price is always an important factor when buying insurance. It is not a cheap cost, but you can make sure you put your money in the right place if you choose a reputable insurance company. The prices of insurance cover are competitive in the market and this leads to the insurance companies reducing the premium costs of staying in the competition. The bad thing is that some insurance companies offer very low price just to attract buyers without really emphasizing the quality of the services. To avoid buying from such an insurance company, you may want to take a look at the insurance companies’ ratings of independent researchers online like A.M. Best and J.D Power. They rate insurance companies based on many factors, such as financial strength (it shows a company’s ability to pay the claim, etc.), customer satisfaction (purchasing and claims experience) and more.

7. Does not update personal information

This is one of the common insurance errors to avoid. Your life changes over time. All information used by the insurance company affects the premium. You may also be entitled to certain discounts as the years go by. For example, you get married, have one of your children listed as a driver, you move to a new address, you have a new profession and so on.

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