Insurance for your car is essential in order to avoid paying huge bills if you have an accident. However, car insurance can be expensive, so you need to make sure you are getting the lowest price for the coverage you want. In order to obtain a good deal on insurance, you need to avoid mistakes that can cost you money. Therefore, here are some common mistakes that can cost you on car insurance.
Everyone always seems to be in a hurry. You are on a time limit, and you are late for an appointment, so you drive faster in order to get you to your destination quicker. You then spot the flashing lights in your rear view mirror. The policeman informs you that you were going above the speed limit, and he issues you a ticket. Speeding tickets can significantly increase your car insurance rates. If you receive a ticket for speeding, your insurance company will consider you risky and more likely to have an accident, so the company will increase your premiums.
2. Not Comparing Companies
Insurance companies are very competitive, so you should shop around online to find the best rates. When your car insurance is up for renewal, you should look around to see if you can get a better rate. Do not just assume that your insurance company is the best just because you have been a customer for years. Explore other options.
3. Only Getting the Minimum Coverage
You are trying to save money, so you purchase the minimum coverage as required by your state. Unfortunately, this could end up costing you money. If you have a costly accident, it will cost you a significant amount of money to repair your vehicle. In some cases, your car might even be totaled, so you will need another vehicle. This will be very expensive, so it would have been cheaper in the long run to obtain more coverage.
4. Being Dishonest with your Insurance Company
You should not lie to your insurance company. You might try to obtain a better rate by lying about where your car is parked or who is driving the car. If your insurance company discovers you were being dishonest, they could cancel your coverage.
5. Driving without Insurance
You would be surprised at how many people drive without insurance because they do not want to pay the cost. You are breaking the law if you drive without car insurance. If you are at fault in an accident and someone else is injured, you could be sued. This will go on your record and have serious financial consequences. If you get caught driving without insurance, your license could be suspended, and you will be required to pay a large fine. It is just not a good idea to drive without the insurance coverage that is required by your state.
6. Missing an Insurance Payment
It is important to pay your car insurance premiums on time. If you miss a payment, the insurance company can revoke your policy. When you try to pay insurance from another company, your rates will be higher. You could even be labeled as a high-risk driver.
Jessica Atlass is full-time mom of two children and part-time blogger. Having experience in Consumer Rights she now focuses and advocates safety for children and young adults, especially on the roads. She recently published on GetInsuranceQuotes.ca regarding accidents involving pedestrians and who would be considered at-fault.