Auto insurance is one of the most essential forms of insurance; almost everyone needs auto insurance. However, not everyone is conversant with the auto insurance industry, and this exposes people to various costly mistakes. Below are some of the car insurance mistakes that can cost you dearly.
Assuming Legal Limits Are Adequate
Most states have minimum liability coverage that each motorist should have. The limit can be as low as 15/30/5 (Pennsylvania), which is relatively low by many people's standards. Don't assume that the state regulatory authority's minimums are good enough for everyone. Evaluate your exposure to auto accidents, the history of drivers who have access to your car, the value of your car, and even the value of the assets you own to help you determine the right coverage for you. Otherwise, you might have to dip into your assets for compensation after an auto accident.
Not Asking for Discounts
There are dozens of auto insurance discounts that you can use to lower your rates. You might not qualify for all of them, but many people qualify for multiple discounts. Unfortunately, many people also don't know the discounts for which they qualify. This means many people are paying higher rates than they should. The only way to get all the discounts you need is to ask your insurance company or agent about all the discounts available and request for the ones for which you qualify.
Failing To Review Coverage
Many people shop for auto insurance once and then automatically renew their coverage every year. Unfortunately, doing that means you might not always have the best coverage at the best rates. This is because many of the factors that determine auto insurance rates vary with time. Residence, profession, credit scores, age, marital status, and driving history are examples of such factors. You need to review your auto insurance periodically to ensure you always have the best possible coverage at the best possible rate.
Assuming No-Car Equals No-Coverage
Lastly, you should not assume that you don't need auto insurance just because you don't have a car. Maybe you don't have a car, but you drive rental cars, you drive borrowed cars, or you intend to have a car in the future. In any of those situations, you need at least some form of auto insurance coverage.
As you can see, there are lots of erroneous assumptions people make about auto insurance. Consult an auto insurance agent before making an insurance decision.Share
18 February 2020
In all fifty states, it is mandatory for you to carry liability coverage on your vehicle. It's also a good idea to carry collision and comprehensive coverage. Yet, choosing the right coverage and finding it at an affordable price can be tough. You can shop online, call around, or talk to friends and find out which companies they're purchased coverage through. This website is here to tell you a little more about those processes. We know all about auto insurance, and we're excited to share that knowledge with you. After reading through this information, you'll be able to buy insurance with confidence.