Nobody enjoys purchasing car insurance. And you don’t really appreciate the coverage until you file a claim. That said, there’s no reason for you to overpay for a policy.
What you want, instead, is a policy that offers the best coverage for a competitive price. Avoiding these mistakes can get you to that goal. Read on.
Not Shopping Around
Purchasing car insurance is a lot like buying a car. By this, we mean you need to compare your options to find the best deal. An insurance agent or broker can help you with quotes, or you can use a third-party comparison website to research different policies on your own. Ideally, you should start shopping for an insurance plan around the same time as you start looking for a car, so you have the time to research all the options out there.
Buying Too Much Coverage
While a lot of car insurance shoppers make the mistake of not buying enough coverage, it is also possible to buy more insurance than you require, which increases the cost of your policy significantly. If you do not have a significant asset base that you need to protect, you likely don’t require a high liability limit. Also, if your vehicle isn’t worth too much, don’t waste your money purchasing collision and comprehensive coverage. Some insurance companies will also pitch unnecessary add-ons, like towing and roadside assistance. But if you have a membership with an automotive club, like AAA, you may not need these add-ons.
Not Bundling Your Policies
A great way to slash your insurance bill is to bundle your car insurance plan with a renters or home insurance plan. It’s convenient for you to have all your insurance plans from the same company, and you’re likely to get a substantial discount from your insurer because you’re bringing them more business. That said, before you bundle, make sure to compare the prices of different policies separately. Don’t automatically assume that bundling your policies will save you tons of money. You also want to make sure that each policy in the bundle meets your needs.