Do you know about these mistakes when buying auto insurance? Here are some of the common mistakes a lot of auto insurance policyholders make. Verify if you recognize yourself:
You presume the insurance salesman is your friend. Insurance salesmen are just that - salesmen. And they really get compensated with bonuses and other rewards for selling particular forms of policies. Those policies are not invariably the policies which are nice for you. Keep in mind that the next time you are shopping for auto insurance. In most cases, insurance salesman is rewarded for selling the smaller policies that leave the insurance company less exposed in case you wish to make a claim. These are the policies that are most profitable for the insurance company. So, as surprising as it could sound, you may really be under-insured.
To make certain this does not happen to you, check that you have the basics: liability coverage, comprehensive coverage and collision coverage (see below).
Your deductible is simply too small. A lot of customers think that they have to protect themselves against each little scratch and dent. That's a bad plan. You need to simply insure yourself for those things that you can’t afford to lose. If your vehicle is only value a few thousand dollars, don't spend very much on premiums for collision coverage by purchasing a small deductible.
Another cause this is a bad plan is that you will be enticed to nickel and dime your insurance company with each little issue which happens to your vehicle. Eventually, your premium will increase or they might say, "we are declining future coverage."
Thus seriously consider getting a much higher deductible - perhaps even as much as $1000. You will save more money and your coverage will possibly extend to a much higher limit.
All of your cars have similar insurance coverage. If one of your vehicles is an old beater, don't cover it a similar manner that you cover your other vehicles. For example, if you've got an old pickup truck that you utilize to transport building materials and you don’t care if it gets dented or scratched or whatever merely gets the minimum amount of coverage on it. Who knows? Perhaps you just drive it a few miles a year. Get insurance that's appropriate for that car and cover your other cars in ways that are appropriate for them.
All of your vehicles are jointly owned. There is really no reason to have a vehicle jointly. If you share ownership with your spouse, it is possible that you could be exposed to liability if your spouse brings concerning an accident. In other words, each of you may be sued. Likewise, when your child buys a vehicle, or if you buy them a vehicle, put the vehicle in your child's name. In that method, you'll be able to avoid liability for any accidents brought on by your child.
You forgot your umbrella. Here is how umbrella coverage works: if you are in a very bad vehicle accident that leads to much property damage that is beyond which your auto insurance policy covers, you may need to pay large amounts of cash out-of-pocket. This is what umbrella policies are for: to guard you from liability that's way beyond the limits of your standard car insurance policy. These umbrella policies are typically rather cheap (few hundred dollars) and might offer you with important coverage.
Hopefully this post has revealed to you some things that you simply can do, that may help you steer clear of common mistakes that vehicle owners make when they get auto insurance.
Posted in: buying auto insurance
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