5 common blunders that affect your auto insurance

If you are driving a car, you’ll need insurance. Whether you own the car or you’re driving a rental, insurance will pay for the financial losses for the vehicle or property damages as well as for the injured individuals in case you get involved in an accident. Driving without insurance is illegal in the US, since most of the states have imposed liability limits for the vehicle drivers.

However, when individuals go out to buy auto insurance coverage, they often make blunders and end up paying more for their policies. Read along to know about the common blunders so that you can avoid making them when you go out to buy your intended coverage.

1. Not shopping around – Shopping around for policies is advised. Jumping and grabbing the first offer made by the first insurance company that comes your way doesn’t make sense. Unless, you compare policies you’ll never get to know which is the best. Besides, you may also fall prey to fraud companies. Internet has made shopping for insurance easier. You can compare online quotes offered by various insurers and choose the coverage that suits your needs and budget.
2. Paying attention to the price and ignoring coverage – This is another mistake that the vehicle owners often make. While comparing the policies, they evaluate the policies on the basis of the rates charged for coverage. They don’t pay attention to the limits of coverage. It’s evident that a cheap policy will not offer the best and all-inclusive protection.
3. Opting for the minimum limits – Insurance needs vary from person to person. The state specified minimum limits only offer liability protection. It’s advisable to buy more than the minimum limits of coverage since, if the damages after an accident are more than what your policy covers, you’ll have to pay the additional expenses on your own. Besides, along with the liability coverage a vehicle owner would also need collision and comprehensive coverage, coverage to protect themselves from uninsured and underinsured motorists etc.
4. Concealing information – This is one other thing that you should never do if you are a vehicle owner and want to keep your premiums to a minimum. Concealing information or misrepresentation is an offense that insurers don’t take too lightly. Thorough background checking is done and your driving history, medical history etc would reveal the discrepancies. And if the hidden information is disclosed later on, your premiums will soar up and all the discounts allowed to you might be cancelled. The insurers may not allow you a renewal next time or may even cancel your coverage outright.
5. Missing premiums – Missed premiums may result in a policy lapse or cancellation. It might be difficult for you to buy a new policy thereafter. Your records will reveal the details of your previous missed payments and the cause of policy cancellation. The insurers will treat you as a high-risk individual and will either deny coverage or charge more for it.

Every vehicle owner needs to buy auto insurance protection. Maintaining a little bit of caution will help you to avoid paying extra for your auto insurance coverage.