You’re a smart and savvy consumer, always looking for a way to save money while still getting the best service. Because of this, you’ve probably done a lot of car insurance comparison shopping. It’s great to take charge, but the road to best and most affordable car insurance isn’t without pitfalls.
Below are some of the most common car insurance comparison mistakes and how to avoid them.
Mistake #1: Not Shopping Around
You have to start somewhere, and by far one of the biggest mistakes you can make is purchasing the first insurance package you come across. How can you possibly find the coverage that best suits your needs and budget if you don’t compare?
Mistake #2: Not Providing Accurate Information
When you’re using car insurance comparison sites like CoverHound, you are directed to fill out an online form. This form asks you several questions in order to gain information used to generate a quote. If you enter details that are incorrect about your car, or give inaccurate answers to questions about your driving record, you’re not helping yourself. If you have traffic violations or previous accidents on your driving record, your car insurance package will reflect it. The only way to get an accurate quote is to provide all the necessary and correct information to the best of your ability.
Mistake #3: Misunderstanding Coverage
If you don’t do your research before shopping around, you may fall into the trap of buying coverage you don’t really need—or worse—not buying enough! Understanding the type of car insurance your state requires motorists to carry is essential to finding a package that works for you. This is a big help when comparison-shopping for auto insurance, because if you know precisely what your needs are, you can whittle down the competition and find an insurance package you need at a price you can afford.
Mistake #4: Failing to Consider the Extras
You may think that you only need to buy the minimum amount of insurance required by your state, hoping to save money by not getting the extra add-ons insurance companies provide. For example, you may have coverage to repair your vehicle if an accident should occur, but what will you drive in the meantime? Unless you have an extra car, you should consider whether or not you need a policy that will cover a rental car while yours is in the shop.
A good strategy is to familiarize yourself with the ins and outs of any car insurance policy you’re thinking of buying while weighing the extra add-ons that may come in handy.
Mistake #5: Concentrating on Cost Alone
One of the misconceptions about shopping for car insurance revolves around the idea that the less money you pay, the better the deal. What you really should be looking at is what you’re getting for the price of the policy. Make sure you examine all of the things included in the policy; this is the only way to truly compare different policies. Just because a company offers a good deal on minimum coverage doesn’t mean that they’ll offer a better deal on higher coverage policies.
In the End
When you finally make the choice toward an insurance plan, you want to rest easy knowing you’re not only getting your money’s worth, but also the coverage you need in case of an accident. Use the knowledge you’ve gained here to go out and get the right coverage for the right price!