Four Costly Car Insurance Mistakes You Can’t Afford to Make

Thursday, November 27, 2014, 1:00 AM | Leave Comment

Car insurance is a necessary part of driving. Just because you need insurance does not mean you have to spend a lot of money for it. Unfortunately, many people spend more money on their car insurance than necessary.

Four Costly Car Insurance Mistakes You Cant Afford to Make

Here are four common mistakes that drivers make when purchasing their auto insurance policies.

  1. Failing to Bargain Shop

    Many people do not take the time to compare rates of different insurance companies. The criteria insurance companies use to determine policy rates vary by company.

    Some companies may charge more for the same policy than another company. The internet is a great resource to use for comparative pricing.

    Even if you already have an insurance policy, it is beneficial to periodically check insurance rates. You may find that you can save money by switching companies.

  2. Setting a Low Deductible

    There are two aspects to your car insurance policy, the premium and the deductible. The premium is the amount you pay every month to stay insured. The deductible is the amount of money you will have to pay before your insurance benefits cover the costs of the claim.

    When you pay a lower deductible, you pay more each month to maintain your policy. By raising your deductible amount, you will decrease the monthly costs of your policy.

  3. Avoid Making Payments on Your Premium

    While paying your insurance premium in installments may make it easier on your wallet. However, doing this could cost you money in the long run.

    Most insurers will give you a discount if you pay your annual premium in one lump sum. The extra money you will spend by making installment payments may not seem that significant when viewed on a month-to-month basis, but it could mean spending a lot more money on insurance over the course of a year.

  4. Not Asking For a Discount

    It is not uncommon for insurance companies, like Steers Insurance Limited, to offer this customers discounts. Some insurance companies will not inform you of their discounts, so it is important that you ask.

    Many insurance companies offer discounts to people. There are no guarantees that your insurance company will offer a discount, but asking can save you a lot of money.

Auto insurance is not cheap, but it does not have to be really expensive either. There are ways to save money on your premiums. By avoiding these common insurance mistakes, you could potential save hundreds of dollars a year.

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