Statista.com shows that the global sales of cars has remained averagely above 70 million with a projection of higher figures going forward. This best fits into the psyche of most of us who intend and really work our asses off to rake in reasonable income for purchasing a dream ride. Actually, the allure of convenience and status that car ownership brings us all really pushes the clamour to have one. But can you pause for a minute and think what would happen if by bad luck a damage occurs on your car, fire burns it down, it is stolen and any such risks? It is at this point where a good insurance company comes handy. The best car insurance company has your back when you as a car owner experiences a great loss. Because an insurance policy serves to protect your interest in the car, it would be a great thing to master the car Insurance mistakes so as to avoid them. It is only in doing so that the objective of the insurance makes enough sense.
Even as we recover from the general slump in most markets globally; not sparing the automobile industry, focusing on insurance decisions is a sensible thing. Those who have found themselves in awkward motor related losses know well that the nature of contracts signed with insurance companies really matter. A mistake made when taking an insurance company can be very hurtful when making a claim for compensation from your insurer.
Getting the correct insurance for your car is a great service for self
When planning to have your first car or as a repeat buyer, having insurance for it should always top the priority list of what to do. In fact, car lovers and legendary buyers will tell you that car insurance matters even more than purchasing the car itself. At the risk of overemphasis, having car insurance is an essential element to owning a car.
Also know something extra about a perfect car insurance company today
You require a substantial amount of money to buy a car. Therefore, it wouldn’t make any sense to leave it unprotected. Besides, in most countries, car insurance is compulsory and could cost you a fine or jail time. However it comes at great costs and requires one to be careful before buying a policy.
You should never buy the first insurance policy you come across. So it pays to shop around before settling on an insurer and a policy. Knowing a thing or two about car insurance will ensure that you have an easier time purchasing a policy. You can begin this journey by exploring popular mistakes when it comes to car insurance.
1. Failure to identify right insurance coverage
There are many types of car insurance policies in the market today. Examples include comprehensive, collision, and personal injury protection covers. Acquiring a comprehensive insurance policy for your car can be costly. This is why most people opt for other policies. Similarly, some select an insurance cover based on the minimum legal requirements.
However, this is wrong since your insurance needs might be different from the minimum requirements. Your car insurance needs are also influenced by various factors including the type and model of your car. Other factors that might affect insurance include car price, driving experience and the driving and weather conditions of your living and commuting area.
The best you can do therefore, is to balance between cost and coverage. Similarly, you can consult an insurance agent on the best cover for you.
2. Failure to shop around for the best insurance policy
Just like you compare prices before purchasing any product in the market, you should do the same for car insurance. Shopping around for car insurance will ensure that you get the best deal for your car. Luckily for you, there are many insurance companies in the market, so you have a variety of options.
Experts advise getting different quotes from multiple insurers before signing up for a specific one. Insurance companies will charge different premiums on their policies depending on a range of factors. For instance, good drivers have better chances of securing a more lucrative deal. So, you should also ensure that you maintain a good driving record without accidents or speeding.
3. Making false disclosure at the point of car insurance application
It might come as a surprise to you, but some people often lie on their application or claim forms. However, this is the worst mistake to make when it comes to purchasing a car insurance. Keep in mind that insurance companies have access to your driving records and personal data.
So, they can identify any inconsistencies in your application or claim form. You risk your application getting rejected or failing to find an insurer willing to sign you up. However, this is minor compared to the trouble you might be in when you get into an accident. An insurer will outright refuse to pay a claim once they discover that you lied.
They might even go as far as cancelling your policy leading to heavy losses on your part. Besides, other insurance companies might be reluctant in signing you up if they realize another company cancelled your policy. Thus, include accurate information on your driving habits and the condition and value of your vehicle.
4. Failure to update your insurance policy
Note that forgetting to update your insurance policy might be interpreted by insurance companies as lying. So, you should always ensure that you include everyone that drives your car in the policy. However, you should remember that you will pay more for insurance when you have many names on your policy.
Your best bet is therefore, to limit the number of people that drive your car. Also avoid letting young drivers drive your car. On the bright side, you can get various perks from updating your policy. For instance, an insurance company will charge lower premiums when you move to a safer neighborhood.
5. Choosing the wrong insurance deductible amount
Ask any insurance expert and they’ll tell you that the deductible amount is an essential element in purchasing a policy. Remember that accidents are inevitable and can cost you a lot of money with the wrong insurance deductible. Most people choose a higher deductible since it generally translates to a lower insurance price.
Problem is, whenever you get into an accident, you will pay a higher out of pocket amount to cover the expenses. So, you should be careful when choosing the deductible amount. If you can afford it, choose a lower deductible and avoid future costs. It will also save you from the inconveniences that come with an accident.
6. Opting for the minimum insurance coverage
While choosing the minimum insurance coverage will save you costs on your policy price, it’s not the smartest way to go. Chances are, it might not cover all your insurance needs. Keep in mind that liability coverage will mostly benefit whoever you collide with. They also give you access to lower liability limits.
Thus, you might end up owing the other party more than is covered by your policy. If your car’s value is considerable, your best bet is getting a collision and comprehensive coverage. However, don’t let this misguide you into buying excessive coverage! Yes. There is such a thing as buying too much coverage.
A good example is where you buy an expensive policy for an old vehicle. Never choose an insurance policy that costs more than 1/10th of the value of your car. Alternatively, you can settle for buying a new car.
7. Conducting limited research about your insurer and insurance options
The internet has made it easier to research car insurance online. There are even comparison websites where you can compare different policies. It also helps to ask as many questions as you can whenever you need clarification on something. Don’t let the fancy words used by agents and insurers distract you from your goal.
Besides, you can even find various online platforms where you can access multiple insurance quotes. All you have to do is fill out a single application that is hardly time consuming if you have all the essential documentation. The only challenge is that the website might only provide an estimated quotation. Remember to lookout for vehicle insurance discounts while you are at it.