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Most Common Mistakes to Avoid While Buying Car Insurance

Updated: May 17, 2023


5 Minutes Read
Common Mistakes Buying Car Insurance


Some Car Insurance Mistakes can be honest to fatal errors that can hurt your auto coverage plan and your wallet.


Traffic violations and driving mistakes compelled the laws to make car insurance an obligatory requirement for anyone who has any sort of auto vehicle.

But what about the mistakes we used to make when purchasing insurance policies due to our lack of awareness of complex insurance jargon or insurance representative over the top who pursue skills that hide significant charges and conditions?

The best way to get yourself the ideal and cheapest car insurance is to make sure that you are well-informed through different online and offline insurance platforms and avoid car insurance mistakes that can be costly.

Therefore, adopting short-term coverage plans where the premium is low can bring a wave of hardship in the future.

To clarify which car insurance mistakes we should avoid at any cost, we have highlighted the following reference points focusing on major to minor policy errors.



Car Insurance Mistakes



Mistake #1



Cutting Vehicle Coverage Plans:


Every car demand a different insurance policy and coverage plan.

Hence, cutting the basic or major car protection cover in your policy to pay a low premium would be the biggest mistake you can make.

Your car insurance will lose its stability and sustainability in the long run. In times of need like theft, vandalism, harsh wheatear, or car crash to personal injury, not having an appropriate coverage plan would cost you more than money, sometimes life.

Therefore, be smart and get a coverage plan that provides long-term security and seek different car quotes and those providers who offer deals and packages to new clients or on multiple too-expensive cars.


Mistake #2



Giving False Information:


When buying a policy, some people might not reveal all the details or try to hide some of the truth to avoid higher premiums.

Some clients try to get those insurance claims or cheap discounts on some policies they might not qualify for.

For an instant:


  1. Saying yes to NCB (no claim bonus) even though they are frequent traffic violators.

  2. Or wrongfully stating that the driver was not involved in any accidents recently.

  3. Not mentioning the actual model or type of your vehicle.


This might seem harmless at the time, but it will affect later on.

These false details could help you get a lower premium policy, but the truth will come out once you claim after an accident.

It should be noted that all insurance companies cross-match the details at the time of claim and reserve the right to cancel your car insurance claims in case of false information.

Therefore, don’t make this mistake; otherwise, your insurance will get rejected immediately.


Mistake #3



Making a Huge Deductible on Insurance:


Any policyholder has to pay a deductible amount when they claim the coverage plans.

The amount depends on age, car model, nature of the incident, etc. The total amount ranges from $500 to $2000.

These deductibles do lower the car premium, but if you’re paying those comprehensive deductibles that are unnecessary for your car, it can disturb the core of your financial status in a day.

Therefore, evaluating the deductible so that at the time of claim, only the deductible is paid by you that is important.


Mistake #4



Looking for a Cheaper Season to Get Insurance:


One of the misconceptions about car protection policy is the right season or time to get an insurance policy.

This is only wishful thinking. Instead of waiting for the right month or season, why don’t you watch online insurance websites or blogs that give informative content on discounts and cheaper deals on claims and other related products?

Hence the right time to get insurance is when you got yourself a new car or your previous policy expires.



Mistake#5



Taking A Long Gap of Getting the Insurance Policy:


Thinking and then deciding on the best policy for yourself is great, but taking a lot of time can cause issues in your conditions.

If you got a car or it’s your car renewal time, and you are taking time more than 30 days, then for the insurance company, you are labeled as a high-risk vehicle driver.

Therefore, they will charge you more auto premium.


Mistake #6



Not Comparing Car Insurance Quotes


Doing car insurance shopping can be more difficult if you don’t compare car quotes.

It should be noted this influences your premium a lot of you.


  1. Visit different car insurance forums online or offline and get a comparison list of all these car quotes.

  2. Once you figure out exactly what features you want to prioritize in your policy, price comparison will make much more sense to you.

  3. Insurance agent simplifies the search for you, by offering you quotes from multiple insurers so you can pick and choose as you see fit.


Therefore, if you are not comparing car quotes, then, in that case, you are giving an open invitation to the auto insurance representatives to trap your inexpensive auto protection policies.



Mistake #7



Violation of Traffic laws:


Violating traffic rules and regulations is not only a crime but also another big reason why your auto insurance rates go up.

The insurance laws highlight two categories of traffic violations.


  1. Minor violations – speeding, improper passing or backing, etc

  2. Major violations – driving under the influence of a substance, felony, careless driving, etc.


Minor violations can be scrubbed from a driver’s record by paying a fine fee but major violations can involve court proceedings, a hefty fine, and even jail time.

The insurance provider conducts background checks and investigations of every client at the time of new motor insurance policies and renewal. Finding bad records can let them to charge a high premium on that individual due to the high risk of accidents.


Mistake #8



Looking for Insurance Company by Price Only:


Seeking insurance providers based on low prices or fees can be a good step. Still, other related technicalities should be focused like customer service and informed representatives, to tackle our concerns.

The ignorance of such a matter can trouble you a lot if you.

Need urgent information or claims.

Therefore, look at all the car insurance criteria before making any purchase.



FAQ’s



How much is the car insurance for new drivers?


For new drivers, car insurance may range based on different factors.


How much is the car insurance for young drivers?


Car insurance is typically expensive for young drivers. Young drivers have to pay 10% - 30% of the total insurance price.



How do you correct an Insurance policy?


You must inform your service provider about the required changes to correct a car insurance policy. You can tell them by sending them a letter with proof of the relevant details that you want to change.


Is it better to stick with the same insurance company?


It depends upon you. Sticking with the same insurance company has its pros and cons. While sticking with the same company can bring you loyalty discounts, you can miss out on the better prices offered by other insurance companies.


What are the must-haves for car insurance?


Here is a list of must-haves for car insurance:

Liability insurance

Personal Injury Protection

Uninsured or underinsured motorist coverage

Collision Insurance

Comprehensive Insurance

Medical Payments


Can car insurance be in someone else’s name?


No! You cannot insure a car in someone else’s name.


Conclusion:


Avoiding car insurance mistakes can let you enjoy monetary savings and full vehicle protection.

Don’t wait for the right time or the right price. Get insurance discounts and a cheap policy by following the rules and getting your car insured as soon as possible.



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Disclaimer This Blog post is made available by the MFIA for educational purposes only as well as to give you general information and a general understanding of the current insurance market, not to provide specific insurance advice. For a bit of specific insurance advice, contact us to get a free quote.


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