If you own a car there is no way around paying for car insurance. Luckily for you, however, there is plenty you can do to avoid paying too much for that insurance. There are common mistakes that people make when beginning to shop for car insurance to take note of. Knowing these mistakes can better prepare you for your insurance shopping.
Failing To Be Prepared
Not knowing what you need and what you don’t need from your car insurance can lead you to purchase an inadequate policy, therefore, paying too much for it. Before you even begin shopping, you should know what is required by your state, how much coverage your lender requires (if the car is not paid off), how much you can afford for your monthly premiums, and how much you can afford to pay out of pocket if the situation arises. Also consider things like roadside assistance if you don’t have AAA or if you can’t afford a rental car in the case of an accident. Knowing what you can and cannot afford will help you better understand what you really need on your auto policy. Another thing to consider is collision and comprehensive coverage. As a rule of thumb, to save money on car insurance, if your premium is more than 10% of your car’s value, you may not need it. If you can afford to replace the vehicle if stolen or totaled, you really may not need it.
Failing To Shop Around
The same policy could be substantially cheaper from another company. Failing to look at what other companies will offer you as a rate is doing yourself a major disservice. If you are already going through the motions to get car insurance, make sure you look at several companies so you can get the same rate. However, you should keep in mind that not all companies are equal. A very low rate from a company with a bad reputation is worse for you in the long run. Make sure you research the companies first before purchasing car insurance. Once you find a few companies that you like, compare the quotes to get the best rate.
Failing To Ask For Discounts
Almost every single car insurance company offers discounts for something. When getting your quotes, make sure you ask about any discounts that may apply to your situation. If you do not ask, you will never know, and you could end up paying a lot more for insurance simply because you didn’t ask. Some common discounts including bundling, good driver, good student, low mileage, and much more.