Avoid These Top 7 Car Insurance Mistakes

For nearly any driver on today's roads, there are some top car insurance mistakes that can really add up to unfortunate expenses and liability. Here are some of the most basic, common mistakes that consumers make on getting auto insurance that truly covers their rides at fair prices.

1. Skimping on Coverage - Lots of buyers play bottom-dollar on auto insurance policies. But what if there's a claim? Think realistically about paying a few dollars more for something that could be well worth it in the long run.
2. Putting off Payments - When you forget to pay auto insurance bills promptly, that insurance could lapse. What's the big deal? Well, the insurer may charge you a large fee (sometimes up to $100) to reinstate your policy. Or, they may deny coverage due to changes in risk assessment. You may be stranded, without any coverage, and unable to get on the road legally.
3. Not Checking on Coverage - With some of the bad car insurance deals out there, it never makes sense to assume that certain things are covered. Whether you have selected a basic liability, collision or comprehensive policy, talk to your rep up front about what would happen in claims situations and how much the company is committed to paying out.
4. Lying to Insurers - You may think you're putting one over on the insurer, by falsely stating the garaging zip code or any other information, but chances are, for any sizable claim, somebody will check up on these details, and if they are wrong, that can let the insurer off the hook for payment. Keep up-to-date records with the insurer and provide correct and timely documentation so there's no loophole for a denial.
5. Not Adding Safety Features - If your vehicle is equipped with safety gear like air bags or ABS systems, you could qualify for a lower rate. Even new items like a tire pressure monitoring system can lower insurance costs, because the vehicle is safer to drive. Report these to your insurance company and ask them about safety feature discounts.
6. Leaving Unused Items on Policies - Leaving multiple vehicles, roadside assistance and extras coverage, or any other line item on a policy can add up to a lot of money wasted over time. Cancel any part of your policy that you no longer need, and do it promptly, to save dollars.
7. Signing Away Litigation Rights - In some states, a "limited tort" option or a similar choice lets drivers sign off on skipping their right to sue for an accident. Though this lowers premiums, financial experts can provide you with horror stories about individuals who didn't understand their policies and waived their right to seek compensation for some costs of injuries in a car accident. Select options that will empower you if you are hit by another driver.

Learning to avoid these big missteps will help you to profit from wise auto insurance purchases.

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