Trying to find cheap car insurance to fit your budget, lifestyle and coverage requirements may take research and planning to get the best policy for you. To make matters worse, some people make mistakes when applying for coverage. They may over insure, under insure, provide false information or end up with a more costly auto insurance policy. Learn from other people by avoiding these common auto insurance mistakes when applying for cheap car insurance.
Before Shopping for Cheap Car Insurance
Trying to shop for cheap car insurance without making a list of your requirements first is asking for problems. The best way to buy insurance is to prepare in advance and have a list of exactly what you’re looking to buy.
Firstly, you need to know the minimum requirements for cheap car insurance in your state. Let’s use Texas as an example. You can find the minimum auto insurance requirements for the state of Texas at the Texas Department of Insurance.
A quick look at your budget should give you a rough estimate of how much you can afford to spend for a monthly or yearly premium.
Before shopping, you’ll need to decide what would be an affordable deductible. This is the amount you pay out-of-pocket before your cheap car insurance kicks in.
Determine whether there is still a loan on the vehicle. Loan companies or banks typically require you to have comprehensive and collision coverage, which adds up quickly. If there is no loan on the car, you can decide whether you want to pay for these types of insurance.
Common Auto Insurance Mistakes
• Not buying adequate amounts of liability insurance coverage on a cheap car insurance policy. It’s tempting to cut costs and save, but you might want to think about purchasing more than the minimum amount required by the state in case of an accident or lawsuit.
• Paying for comprehensive and collision insurance when driving an older vehicle. There comes a point where the cost of comprehensive and collision isn’t worth paying for because of the age of your car.
• Research any insurer you’re considering to learn about their background, claim complaints, dependability, stability, Better Business Bureau rating and customer service.
• Never lie or forget to include important information on an insurance application such as claims you’ve made in the past, traffic violations, DUIs or accidents. In all likelihood, this information will eventually be found, and it may be cause to turn down a new claim or cancel your cheap car insurance policy.
• Don’t assume you’ll automatically receive discounts you may be entitled to such as safe driver, loyal customer, over 50, safety feature discounts and so on. Always ask your agent if you think a discount is applicable in your situation. More discounts mean cheap car insurance.
• Low deductibles may seem to be a logical idea. However, lower deductibles increase the amount of your premium that’s paid monthly or yearly. Safe drivers will rarely make a claim, so paying higher premiums is costing you more money in the end.
• Too many people focus on the monthly premium when buying cheap car insurance and not the purpose of the insurance. Granted, you have to consider costs, but you must make sure you have adequate limits, coverage types and a company that you can depend on when there’s an accident.
• Many consumers assume they have full coverage when they write a check for cheap car insurance. Sadly, this is often not the case. Check with your agent to be sure you haven’t missed something or have gaps in your insurance coverage.
Cheap car insurance is possible by determining your insurance needs, researching and choosing the most appropriate insurance coverage.