Insurance Buying Mistakes
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6 Car Insurance Buying Mistakes and How to Avoid Them

Did you know that road crashes are the single greatest annual cause of death of healthy U.S. citizens traveling abroad?

Driving has inherent risks, but many accidents are preventable. One way to protect yourself on the road is to ensure your auto insurance is up-to-date. This may seem like a trivial thing, but there are many auto insurance buying mistakes to watch out for.

Keep reading for tips to avoid car insurance buying mistakes.

1. Not Shopping Around for the Best Rate

One of the biggest mistakes people make when buying car insurance is not shopping around for the best rate. A lot of factors can affect your rate, such as your driving record, the type of car you drive, and where you live. By shopping around, comparing insurance costs, or reading online reviews, you can make sure you’re getting the best deal possible. 

Another is to ask about any discounts that may be available to you this can be for things like having a clean driving record or being a safe driver. 

2. Not Knowing Your State Requirements

Not knowing your state’s requirements is one of the biggest mistakes people make when buying car insurance. Every state has different minimum insurance requirements, so it’s important to know what your state requires before you purchase a policy.

Not knowing your state requirements can lead to a lot of problems. To avoid these mistakes, make sure you research your state’s insurance requirements before you purchase a policy.

3. Not Understanding Your Coverage

Many people think they are fully covered when they are not. Make sure you understand what your policy covers and does not cover.

If you are not sure, ask your agent or company representative. It is better to be safe than sorry. 

4. Paying Too Much for “Extras”

Another mistake to avoid is getting a policy that can leave you paying too much. An example is buying extras that you don’t really need. Many people purchase extras like rental car reimbursement and towing coverage without really understanding what they are and whether they’re worth the cost.  

5. Filing Too Many Claims

There are a few car insurance buying mistakes that can lead to higher rates, and one of them is filing too many claims. If you have a history of filing multiple claims, a car insurance company will view you as a higher risk and charge you accordingly.

To avoid this, be sure to shop around for the best rates and only file a claim when it’s absolutely necessary.

6. Not Paying Attention to the Fine Print

Many drivers assume that their insurance policy covers everything, but this is often not the case. Insurance policies have a lot of fine print that outlines what is and is not covered.

Not understanding what your policy covers can lead to major headaches and problems down the road if you are in an accident or your car is damaged. Be sure to ask your insurance agent to explain everything, including  the insurance terms and conditions

Protect Yourself and Avoid These Car Insurance Buying Mistakes

Car insurance is one of those necessary things that we all have to deal with if we want to drive. But it doesn’t have to be a painful process. By avoiding these car insurance buying mistakes and taking the time to compare policies and read the fine print, you can protect yourself and get the best coverage for your needs.

For more information on this topic, check out the rest of our site for more helpful tips.