Insurance is a complex subject that most car owners don’t understand. We understand how frustrating it can be to find that you’ve paid for the wrong plan or had better options that you didn’t know existed. Read on to learn about some costly car insurance mistakes that you should avoid.
1. Not Doing Research
All car insurance coverage is not the same. Some favor certain motorists over others, depending on their location, driving history, driving habits, and type and purpose of the vehicle in question. To find the most suitable cover for your car, you need to do thorough market research. Compare different companies by reputation, cost, financial strength, payout history, and customer satisfaction and use your findings to make a decision. You can also try review sites if you want your pursuit for car insurance made easy and quick.
2. Falling for Low-Premium Offerings
Many first-time car owners play into the hands of dodgy insurance companies who entice clients with cheap premiums. Low premiums usually translate to low insurance coverage. In the event of an accident, you might end up paying more out of pocket for repairs than you collectively would have in premiums. The cost of insurance should always come below company reliability and reputation in your filter-down procedure.
3. Not Entertaining Add-On Clauses
Insurance add-ons such as EMI coverage, roadside assistance, zero depreciation, and vehicle replacement advantage coverage are all extra covers against future costs associated with your car. If you are always on the go, for instance, roadside assistance is an add-on you can’t ignore, as you face a significantly higher risk of breakdowns. Zero depreciation policies provide that the insurer pays the entire claim amount regardless of depreciation. It’s a worthy consideration if you have no plans of replacing your car in the immediate future.
4. Waiting for a Cheaper Time to Insure
While there are cheaper times to insure your vehicle, the downsides of sitting and waiting for them are massive. Not only is it a huge risk to use a car without insurance, but it is also possible that your next insurer will penalize you for leaving gaps between policies. The whole point of waiting for a cheaper time will be nullified if that ends up being the case. There is nothing quite as costly in insurance as being listed as high-risk; the seemingly minor penalties will add up to set you back a fortune in the long run.
When it comes to car insurance, some things are across the board: risky drivers will be charged more than safer ones; older drivers will pay less than younger ones; cheaper policies will almost certainly pay less during accidents. Make sure to view car insurance offers from multiple angles to avoid entangling yourself in costly contracts, all while trying to trick the system.