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The Most Common Car Insurance Mistakes People Make

Car insurance is one must-have for car owners 

Tuesday December 20, 2016,

3 min Read

Most people nowadays understand the importance of car insurance no matter the age. However, not all people are knowledgeable enough to avoid committing these common car insurance mistakes. There are already quite a number of drivers who live with regrets regarding their choice of insurance plan. You don’t want to be one of them, right?

To get the best car insurance deal in the market, here are 5 common mistakes that you need to avoid:

Opting for the Cheapest Option

It is human nature to always settle for the cheapest deal unless, of course, you are a millionaire. After all, isn’t it the whole point of getting an insurance— to protect yourself from any liability when an accident happens? Unfortunately, thinking that getting the cheapest deal is the best option is the biggest mistake that most car owners make.

The true measure of price value isn’t about how cheap the insurance is; it’s about how much you have saved in the long run. You may have saved a bundle for settling for cheapest option, but if the coverage doesn’t meet your needs, you will end up paying more than what you’ve imagined.

Setting your Deductible Too Low

This is the second most common mistake that car owners make. Most car insurance policies come in two parts—the premium and the deductible. The premium is what you need to pay on a monthly basis. The deductible, on the other hand, is the amount you need to pay before the insurance company covers the rest.

Most car owners settle for a very low deductible, forcing them to pay a little bit more on their premium. In the end, you get to spend more on your premiums by choosing a very low deductible, which can only be paid once the accident happens.

Being Shy About Asking for Discount

Car insurance is one must-have for car owners, but it doesn’t mean that you will sacrifice your savings just to pay the bill. If two or more members of your family are on the same policy, you can actually ask for insurance. Also, if you are a good driver who hasn’t been in an accident for years, your insurance company might give you a discount. Although some companies are strict about their policy, there is no harm in trying. You’ll never know, a simple phone call to your insurance provider might allow you to save a few dollars.

Lying About your Credit Score

In every transaction that you plan to take, it is best if you remain honest. Insurance companies usually check your credit history to see if you are eligible for the insurance. This credit history check usually involves evaluating your previous credit, as well as credit balance.

During this phase, it is best to be honest about your credit score. If the insurance company knows your credit status, they might offer you a special plan until you have cleared your credit record.

Expecting that you are Entirely Covered

If there is one thing that most car insurance dealers fail to mention, it is the fact that there’s no single insurance that covers everything. There are always limitations or conditions before you get to enjoy your insurance benefits. Don’t ever think that once you get an insurance, you are fully covered whatever happens to your car. The best thing to do is to talk to your insurance provider and clarify the issues and vague details you have about the coverage.

If you want to learn the whole scope of the car insurance policy, you must ensure that you’ve trusted the right company to get the perfect plan that suits your needs. 

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