The Most Common Car Insurance Mistakes and How to Avoid Them

Basil Mahadeo
4 min readJan 19, 2022

Purchasing a car is considered a large-ticket item. It is not prudent to leave such a significant investment unprotected. It’s essential to shop around for the greatest deal on insurance.

The procedure will require some research on your side. A portion of it involves selecting the appropriate car, and then there are considerations, insurance choices, and a suitable budget for paying for that insurance. Age is a significant factor in determining the cost of car insurance. Insurance costs generally decrease as drivers acquire experience since older drivers are less likely to be involved in an accident or incur a driving infraction. There are some common mistakes that car owners make when getting an insurance policy.

Not Researching the Coverage You Need

Before purchasing any vehicle, you should ascertain the cost of its insurance. A high-priced car requires an equally high-priced insurance policy. You must check the pricing once the transaction is complete. Use extreme care if there are high-risk drivers in your family. You may get a denial for insurance if you or a member of your family is considered a high-risk applicant. A very high-risk driver in a very high-risk car is unacceptable to a large number of insurance companies.

Speak with your insurance agent or call customer service about the different types of vehicles you may cover. Insurance companies will assist you in gaining an understanding of the insurance prices associated with various kinds of cars so that you can make an educated decision. A crucial first step is determining which vehicles are more prone to need maintenance. You must understand what you are getting yourself into before agreeing to anything to save you from surprises later on.

Not Comparing Insurance Companies

Comparing insurance is not as easy as it sounds, but it helps to choose the right company that is suited to your budget and car. When shopping for insurance, you should consider more than one provider to maximize your chances of obtaining a good bargain. It would be best to call the customer service department of the different companies to understand the companies’ policies better.

If you focus only on one provider, you’re setting yourself up for a more costly service and limiting your chances of getting better renewal deals. When searching for auto insurance, always attempt to get at least three estimates from various providers. If you have an accident or a speeding ticket on your driving record, you may need to search around to get the best and cheapest choice for you.

There are also various types of insurance you should look into before settling with ones like comprehensive insurance and collision. It might be required by law you to get them, and others are not necessary, but are essential. You should have coverage for:

  • Property damage liability
  • Uninsured motorist
  • Bodily injury liability

Failing to Update Your Information

Make sure that your insurance company has all your current information since this may affect the price of your insurance. Updating the names of the individuals insured on your car insurance policy is vital since it will protect your household at all points in time.

If anything on the declaration page is unclear to you, call customer service to help you understand the terms of the property named insured on the declaration page. The named insured driver is the individual or company that is specifically mentioned in the insurance policy. A named insured driver is generally the owner of all property insured and the policy, too.

Choosing the Wrong Deductible

The deductible amount is a critical component of your automobile insurance. A larger deductible means you’ll pay more if your vehicle is damaged an accident, but it can lower your insurance rates. A smaller deductible can result in a higher insurance premium, but you will pay less to replace or repair your car.

Not Asking About Available Discounts

On the other hand, you shouldn’t forego the discounts for which you do qualify. Ensure that you take advantage of any available discounts. All of these items will save you money since the insurance company will know you’re less likely to make a claim. You may even qualify for savings if your car has specific safety features. You want to save money wherever possible, so keep an eye out for any available deals.

Conclusion

When buying insurance for your car, you should be very careful and avoid these mistakes to save yourself money and trouble. If you have doubts about the best option for car insurance, you should consult with an insurance agent. You need to research various types of insurance coverage that will suit you best.

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Basil Mahadeo

Basil Dahana Ram Mahadeo is a Director of GBTI for the past twenty-two (22) years.