You probably always hear that just fifteen minutes is all that it can take to save money on car insurance. However, if you’re not familiar with the way insurance works or you make quick, uninformed decisions, you can end up actually spending more than necessary on car insurance. This is a compiled list of three of the biggest mistakes shoppers make when buying car insurance.
Failing to Get Multiple Quotes
It’s definitely possible to spend too much on car insurance if you don’t get multiple quotes from different providers. For example, if you reside in Texas and you only restrict your search to Texas auto insurance quotes, there’s a good chance that you’ll miss out on quotes from other companies that might not be from the same states. Auto insurance comparison tools are a great way to make comparisons between auto insurance companies. You can use them by simply plugging your information in one time and then, depending on the information you specified, several quotes from different companies are offered in an easily readable format.
Not Checking with the Reputation of the Company
Many people overlook the importance of checking on the reputation on a company. This is mainly because they assume that the company will hold up their end of the bargain in the event of an accident no matter what. However, this isn’t always true. Some insurance companies have histories of avoiding claims and or treating consumers with less than satisfactory service. Always do your research before signing a contract with an insurance company.
Buying Too Little or Too Much Insurance
Lastly, shoppers often make the mistake of buying car insurance that they don’t need. Likewise, they often fail to buy insurance that they do need. Don’t raise your deductible just to get a few extra dollars off of your monthly car insurance premium. This in turns raises the amount of money that you’ll have to pay in the event of an accident before your insurance company is required to start paying up. This “discount” is convenient when paying monthly bills, but it will come back to haunt you if you ever have a wreck.
Overall, it’s best to shop smart and use common sense when buying car insurance. Shop around before making a decision, find out whether the company has a history of not filling claims, and make sure you are buying a policy that actually fits what you need. If you can meet these three goals when shopping around, you’ll likely uncover a great deal on auto insurance.
Janice is a freelance blogger and author. Away from the office she enjoys spending time with her family.