Common Mistakes related to Your Car Insurance
Insurance is a vital tool to protect your assets but this definitely doesn’t mean that you need to pay more than required. People often do not review their car insurance policy and many a time, fall into the trap of paying premiums every month without having a second look at them. And if you are one of these people who avoid reviewing your car insurance policy, then you are probably making few major mistakes that could unnecessarily cost you hundreds of dollars every year.
Without much ado, we list down for you the most common and avoidable car insurance related mistakes that can help you cut down on your insurance costs.
1. Ignoring Discounts
If you don’t ask for discounts, then you’re probably making a big mistake as car insurance agents do not automatically add discounts to the policies without you asking for it. Some potential discounts that you may be overlooking include carpooling, being a long-time customer, driving a vehicle with safety and security features, having a good driving record, and parking your car in a garage instead of on the street. These will automatically add up in saving your spending.
2. Not Switching your Insurer for Years
You may have evaluated options, compared quotes, and finalized on the best insurance provider possible. But once done, have you updated yourself to check if there is any new provider providing better terms and services? Insurance companies reserve best (low in many cases) rates for new customers. Hence if you have stayed with a provider for long, you probably are paying higher premiums that keep on increasing steadily year after year.
3. Paying in Installments
Paying in installments seems manageable and structured, but the fact is that insurance providers add convenience fees to the monthly installment payments you make. This thus ends up costing you way more than a paying the whole sum at the beginning since the fees keep adding up over time. For example: A monthly fee of $7 can easily add up to $100 every year!
4. Not Merging Insurance Policies
If you have multiple insurance policies like home, car, and life insurance policies, then it is recommended to shop around and combine these policies with a single insurance carrier. This helps you save a lot of costs, usually around 15% on all your premiums made. Eventually, by combining your insurance policies, you save much more in totality.
5. Trying to save money by buying the minimum coverage
Some people often overpay for insurance, while many others try to save on their money by opting for minimum coverage. These people often risk themselves and do not succeed in covering their assets. Insufficient liability coverage and high deductible helps in saving money in the short run, but costs thousands in the long run in terms of repair bills if ever you get in any accident.