The cost of car insurance is a major expense for most people, and rising rates often seem unavoidable. We all want to pay less for it, but misunderstanding car insurance can end up costing you a whole lot more. There are a lot of half-truths, rumors, and pitfalls when it comes to car insurance - all ones that could mean we end up paying more each month for our coverage.
Avoid making these car insurance mistakes that could drain your wallet in the future.
Not shopping around
It's known that to get the best price for your coverage, shopping around is well worthwhile. Whether you ask friends and family for recommendations or visit price comparison sites on the Internet, gather quotes from a few different companies to see how and where you can save.
Not knowing the basics
At the minimum, know how much coverage your state requires, how much you can afford for monthly premiums, and how much you can afford to pay out of pocket for a deductible. These three findings will help you to secure the right level of coverage for your budget. Do a bit of research now to save time and money later on down the road!
Not telling the truth
It may save you money in the short-term to keep quiet about things like a new driver or to not mention a ticket when you shop for quotes. However, in the long run, it could cost you even more. Insurance may decide to back-charge you for the new driver, or worse, drop you from coverage. More often than not, they're going to find out anyway, so in this case, honesty really is the best policy.
Understating your mileage
You should try to be accurate on how many miles you expect to drive in a year. There's no point claiming that you will do 3,000 miles a year when your commute means you do 11,000. This could come back to haunt you if you intentionally state it as lower than average but actively do average or above average miles.
Buying too little insurance
A sure way to save on auto insurance is to decrease the amount of coverage and raise the deductible. However, this means that you are left with little protection in the event of an accident, and you will have to face a high out of pocket expense should you need to file a claim. Consider what premium works for your budget while maintaining the right level of protection.
Keep your rates as affordable as possible by being careful to avoid these car insurance mistakes! If you're unsure what coverage and rate is best for your needs, visit Jack Stone Insurance Agency, serving Antioch, Brentwood, and neighboring cities in California.
