Most drivers will do anything they can to keep from paying too much for a new car, but surprisingly, many of those same drivers wind up paying more than they should when buying car insurance. Of course, buying car insurance can seem complicated and overwhelming, but with a bit of research and time to review insurance quotes, drivers can find the right policy at the most reasonable price. However, it’s always good to be prepared when searching for affordable, quality coverage, so read the following list of the top five reasons drivers pay too much when buying car insurance.
Drivers are overinsured. There are drivers that only have the state minimum insurance, and there are drivers who have insurance for every possible calamity. Of course, how much insurance you buy on top of the required minimum is a personal choice, but it pays off to carefully review your options and coverage amounts. For example, it’s always a good idea to have bodily injury liability and comprehensive coverage, but never allow the coverage amount to exceed your financial limits. To avoid paying too much, make a budget for your insurance payments that is realistic for your situation before buying car insurance.
Omitting to submit driving records. When you purchase insurance, the insurance carrier reviews your driving record to see if you’ve been involved in accidents or had moving violations. This is a logical precaution, as careless drivers are likely to cost insurance companies more in terms of claims and are therefore required to pay higher premiums. But what if your driving record is spotless? If you haven’t been involved in any accidents or been cited for a moving violation in the past three years, remember to inquire about discounts for good driving habits. This can sometimes result in as much as 10% of your insurance rates.
Married couples don’t insure their cars together. Though it’s not the most romantic part of tying the knot, reviewing your insurance policies and seeing where you can save money should be on every newlywed couple’s list. Most insurance companies offer multi-car discounts for married couples, so make sure to report your marriage and ask how this affects your insurance rates as soon as possible.
Neglecting to take a defensive driving course. Even if you’ve been driving for years, completing a defensive driving course and submitting proof of completion to your insurance company can result in substantial discounts. Though you used to have to go to a driving school to take a defensive driving course, nowadays they’re offered online, as well, so you can study from the comfort of your own home. Before you enroll, be sure to check with your insurance carrier to find out which courses they approve.
Neglecting to comparison shop. Never assume your current insurance carrier has the best rates. Remember to periodically request free car insurance quotes from a reputable insurance comparison site like AgentInsure. With AgentInsure, you get the best quotes so you can save cash on your car insurance!
Can I Keep the Auto Insurance Claim Money and Repair the Damage Myself?
When you make a claim on your auto insurance after an accident or an incident that caused damage, you will receive funds to make repairs after an estimate is obtained for the cost. If you do not ha...
Read More →
What is the Difference between Named Perils and Open Perils on your Insurance Policy?
While comparison shopping for insurance, you will encounter two different types of policies: named perils and open perils policies. Understanding the difference between the two insurance policies w...
Read More →
Who is Covered by my Car Insurance if I am Not Driving?
If your friend borrows your car while hers is in the shop, or if your son lets a friend drive the family car, the coverage for the vehicle will be provided by your insurance, in most cases. While e...
Read More →