Obtaining Car Insurance: 5 Mistakes to Avoid When Comparing Quotes

Being a car owner comes with a few responsibilities, and one of the most important is obtaining car insurance.

Whether you have just passed your driving test or have had years of driving experience, it is essential that you get car insurance to provide yourself with financial and legal protection in the event of accidents.

Having the right policy will cover all expenses, including medical bills and repair costs that may result from the accident.

In general, shopping for car insurance often seems a bit stressful for many drivers as there are many factors that need to be considered as well as a variety of car insurance coverage to choose from. Because of this, many people tend to make mistakes when comparing different car insurance quotes.

5 Top Mistakes to Avoid When Comparing Quotes

To prevent this from happening, we outline five mistakes you should avoid making when obtaining car insurance.

1. Not shopping around enough

Not shopping around enough is probably one of the biggest mistakes many drivers make. They often go for the cheapest coverage from the first insurance company they find because they believe it would be enough to cover all necessary expenses.

However, the entire purpose of shopping around is to compare car insurance quotes from different insurance providers to pick the one that best suits your budget and unique needs. All of this shopping around may take time, but it will be totally worth it in the end. It actually allows you to get an idea of which companies offer the best rate along with excellent customer service.

2. Paying monthly instead of in-full

There is no going around it—car insurance can be quite expensive. In fact, this is one of the main reasons why many car owners decide to pay for it in monthly installments. However, paying your car insurance in full instead may actually be a better idea as there are some benefits you can reap from doing so, such as earning significant savings on the total premium.

Either way, there are some factors that need to be considered first when deciding how you want to pay for your policy. The most important ones include examining your current financial situation, how you prefer to pay your bills and how likely you are to switch insurance companies midterm.

3. Missing out on discounts

When searching for the right car insurance policy for you, it can be easy to miss out on the discounts many insurance companies offer their clients. However, these discounts can actually come in handy and even help save you hundreds of dollars on your coverage.

For instance, one discount you should never miss out on is bundling two insurance coverages at the same time. Whether you own more than one car or want to obtain insurance both for your home and your car, you should definitely see whether the insurance provider offers this possibility so you can get a lower premium.

4. Hiding your driving record

Your driving history is one of the main factors that are taken into consideration when purchasing car insurance. While a poor driving record may identify you as a high risk for insurance, hiding it altogether intentionally may actually disqualify your application entirely.

All insurance providers do thorough research and examine each client’s driving history in great detail, so concealing any past accidents, felonies, and traffic tickets are pointless.

So, try to be as honest as possible with the insurance company about your driving record so you can still get a decent quote on your policy.

5. Setting your deductible too low

Another mistake you should avoid making when comparing car insurance quotes is setting your deductible too low. The thing is low deductibles often amount to paying a higher premium, whereas a higher deductible might lead to cheaper car insurance premiums.

However, when choosing your deductibles, there are a few things you should consider first, such as:

• The actual cash value of your vehicle;
• Your monthly or yearly budget;
• Deductible add-ons.

That’s why it is important that you compare multiple car insurance quotes so you can choose an appropriate deductible level.

Final thoughts

Whether you are a new driver or have had years of experience, obtaining car insurance is necessary. It provides you with financial and legal protection by covering all expenses.

However, as there are different types of car insurance coverage, each with a different rate, it is important that you shop around and compare multiple quotes to purchase the policy that best suits your unique needs and budget. 

Additionals:

• A Guide To Choosing The Ideal Car Insurance
• What is Consumables Cover in Car Insurance?
• What You Should Know About Car Insurance to be Fully Insured
• Four Tips Every Driver Should Know About Comparing Car Insurance