When it comes to buying auto insurance, you want to be sure that you are doing it right to ensure that you are adequately protected. Here are four mistakes that you should avoid when it comes to purchasing auto insurance:
- Choosing the Minimum: Since driving without auto insurance is illegal, many people believe that the best way to save money is to purchase the absolute minimum auto insurance that is required by state law. However, this can actually end up costing you more in the end. This is because if you need to make a claim, your high deductibles on your minimum insurance coverage can end up costing you more than what you would have spent yearly to ensure that your deductibles are lower.
- Ignoring Discounts: When you purchase auto insurance, you likely want to do it the easy way by purchasing online and not actually talk to an insurance agent so that you can get the process over with quickly. The problem with this is that you won't have time to ask about discounts that you are eligible for. You must actually let the agent know you want these discounts applied because they will not automatically be applied for you. Your agent can even give you advice to help you receive further discounts. For example, some insurance companies will provide you with a discount if you attend a driving course.
- Not Asking About Coverage for a Rental Car: After being in an accident, you may have to have your car repaired, which can take a few days or more. Many people assume that their insurance will provide them with coverage for a rental car. However, this is not always the case. You don't want to find yourself in a tough spot financially if you end up having to pay out of pocket for a rental car, so be sure that this coverage is included.
- Not Considering Other Payment Options: Paying monthly on your car insurance can actually cost you more than if you were to pay for it twice a year or all at once for the whole year. If you are able to, it's best to pay twice a year or for the full year. This can save you a significant amount of money because you won't be paying an installment fee to pay monthly.
When you avoid these four mistakes when purchasing auto insurance, you can definitely save more money on the cost of having to have auto insurance for your protection and to drive legally on the road. To learn more, contact an insurance agency like Nelson Insurance Agency.