Here are the common mistakes that consumers make when buying auto insurance. If we have the wrong auto insurance, or have made the wrong claims, it can really hurt our finances. Take a look at the following points and try to keep them in mind when buying your car insurance.
1. Your car insurance salesman is NOT your friend. The cheapest car insurance for you does not bring the best bonuses for salespeople. It is in the salesman’s best interests to sell the least amount of insurance that they can possibly justify. So you need to make sure your have “liability” coverage to cover costs of another person’s car damage and injury, “comprehensive” to protect you if your car gets stolen or catches fire, and “collision” to cover damages if your car collides with another vehicle regardless of who’s at fault.
2. Never assume that all cars need the same insurance. You may want to get full insurance for your luxury red sports car but not for your pickup truck that you use all the time. I strongly suggest that you still maintain your liability insurance in case you cause an accident.
3. Avoid owning a car jointly. Although this may not come up buying or getting auto insurance quotes, it makes a huge difference in potential payouts. There is absolutely no good reason to own a car jointly. If you share ownership with your husband or wife, both of you are exposed to liability and can be sued.
4. Get umbrella policies. Some ignore this because of the extra cost but these are very cheap insurance policies and can help drivers who have been in major accidents. Since these policies only protect against the worst accidents, they rarely payout and thus they can be bought for a very cheap price. These policies will shelter you from liability extending beyond the limits of your standard policy so it’s definitely worth getting.
1. Your car insurance salesman is NOT your friend. The cheapest car insurance for you does not bring the best bonuses for salespeople. It is in the salesman’s best interests to sell the least amount of insurance that they can possibly justify. So you need to make sure your have “liability” coverage to cover costs of another person’s car damage and injury, “comprehensive” to protect you if your car gets stolen or catches fire, and “collision” to cover damages if your car collides with another vehicle regardless of who’s at fault.
2. Never assume that all cars need the same insurance. You may want to get full insurance for your luxury red sports car but not for your pickup truck that you use all the time. I strongly suggest that you still maintain your liability insurance in case you cause an accident.
3. Avoid owning a car jointly. Although this may not come up buying or getting auto insurance quotes, it makes a huge difference in potential payouts. There is absolutely no good reason to own a car jointly. If you share ownership with your husband or wife, both of you are exposed to liability and can be sued.
4. Get umbrella policies. Some ignore this because of the extra cost but these are very cheap insurance policies and can help drivers who have been in major accidents. Since these policies only protect against the worst accidents, they rarely payout and thus they can be bought for a very cheap price. These policies will shelter you from liability extending beyond the limits of your standard policy so it’s definitely worth getting.
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