The biggest auto insurance mistake you can make is not having any coverage at all. If you get into a crash, you may have to cover costly medical bills, vehicle damage, and even lawsuits yourself. Besides, considering that auto insurance is mandatory in almost all states, not having it means you're risking hefty fines and even a possible jail term.
However, the fact that car insurance is mandatory doesn't mean you buy it with your eyes closed. There are numerous mistakes to avoid, whether you're buying an auto insurance policy online or offline. Here are three of those mistakes!
Not Being Completely Honest
It may be tempting to lie about who'll be driving your car, how you'll be using your car, or where you'll be parking it at night in order to pay lower rates. But insurance companies will check your driving records and personal data, making it easy to spot inconsistencies. Any indications of dishonesty can lead to your application being rejected.
Besides, if an accident happens and your insurer discovers you lied, they could reject your claim and cancel the policy. With a cancellation on your record, other insurance companies may be unwilling to insure you. Thus, it's advisable to give accurate information, even if it means paying a little more for insurance.
Just Getting the Minimum Coverage
While getting car insurance helps you comply with your state laws, that shouldn't be your only motivation. Your primary motivation for getting auto insurance should be getting financial backing to cover you in case of a crash.
Most states have liability insurance as a mandatory requirement. This covers you for any injuries or property damage you have caused to other drivers. So, what about the damage to your car? For that, you may need to get a comprehensive plan.
And, if you want protection for the injuries you have sustained in an accident, you may need personal injury protection coverage. Your insurance agent will explain all the options available to you.
Buying Insurance Without Understanding T&Cs
Buying an automobile insurance policy is like entering into a contract with various terms and conditions (T&Cs). You need to read and understand the T&Cs of your policy, as they will guide everything you do, from how you make payments to how you file claims. Without proper understanding, you might be disappointed to learn that a certain event isn't covered when an accident has already happened.
If some details in the auto policy document are confusing, seek clarifications from your insurer's support team. This allows you to understand how car insurance works and have clear expectations from your coverage plan.
Contact an insurance agency to learn more about auto insurance coverage.Share