Buying Auto Insurance for the First Time? Avoid These 4 Potential Mistakes

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Navigating the World of Insurance

The world of insurance is changing. While you used to have to meet up with an insurance agent in person to discuss your policy options, you can now begin a new insurance policy right online. When I first signed up for an auto insurance policy, I realized that signing up right online led to confusion when I didn't have an agent with me to discuss which policy was best for me. Thankfully, I realized I could chat with an agent right on the website. I then began researching insurance and learned a lot about many types of insurance during the process. I find the ever-changing world of insurance so interesting that I continue to research it and thought that I would help others by posting what I learn on a blog. I hope I can help you make good insurance policy decisions! Check back often for new posts!


Buying Auto Insurance for the First Time? Avoid These 4 Potential Mistakes

14 June 2018
 Categories: Insurance, Blog

If you are preparing to purchase your first auto insurance policy, you may think that there is a single policy out there that will cover all of your auto coverage needs. Unfortunately, there are mistakes that can be made when purchasing car insurance that can cost you down the road. Here are 4 potential mistakes you should avoid making.

Getting the Bare Minimum Coverage

If you are looking to purchase the minimum amount of insurance that you need, it's important to understand what it covers. If you cause an accident, you'll have coverage to pay for the other person's vehicle and their medical bills. However, a bare minimum insurance plan will have limits towards how much is paid out for personal property and bodily injuries. If you are involved in an accident with a lot of people in the other car, you can easily exceed your limit on bodily injuries.

Getting the Cheapest Coverage

When comparing different auto insurance providers, don't make the mistake of going with the provider that offers the cheapest insurance policy. You may find that spending a little more money can help you have a much better policy for when you have to make an insurance claim.

For instance, having accident forgiveness will cause your rates to not increase after your first accident, which can save you thousands of dollars over the years by having a cheaper insurance policy. You should also look into how repairs are made to your car, and if you have to use certain mechanics to do the work.

Not Disclosing Every Driver

An auto insurance company will base your rate off on the risk factors of all drivers that will be getting behind the wheel. If you have a sibling or roommate that will be driving the car, they should be listed on the policy too. If you intentionally do not list them as drivers, your entire policy could be canceled if they get into an accident with your vehicle, leaving you to pay for the repairs on your own.

Not Reading the Policy

You should take some time to read over the policy once you receive it. It may seem boring, but it can shed some light on important parts of the policy that you may have to use someday. If you have any questions about it, you can always contact your agent and ask them sooner rather than later.