Talking About Auto Insurance Options

5 Auto-Insurance Mistakes to Avoid

by Megan Ortiz

Auto insurance is required in most states, and it will protect you financially if you cause a car accident. Some types of auto insurance also cover your car if it is stolen or damaged. Buying auto insurance can be frustrating if you don't know what you're doing. When buying your next auto insurance policy, avoid the following mistakes.

Not Shopping Around

There is no set formula that determines the price of an auto-insurance policy. Rates vary from company to company, so it is well worth your time to get quotes from several insurance companies before you make a purchase. When comparing the quotes, make sure they all offer the same amount of coverage.

Failure to Get the Price in Writing

When getting auto-insurance quotes, you may be quoted a price over the phone or on a website. But before you agree to buy the policy it is in your best interest to ask to get the price of the premium in writing and also ask for a price breakdown so you know exactly what you are paying for. This will protect you in the event that the amount you're being billed does not match the original amount you were quoted.

Neglecting to Read Your Policy

An auto-insurance policy can be dry and a little boring, but it is important that you read it. This will ensure that you know exactly what type of coverage you have and how you are protected. If there is any information in the policy that you don't understand, contact a representative at the insurance company for clarification.

Forgetting to Ask for Discounts

Insurance companies offer a number of discounts to reduce the cost of premiums, but they may not be offered automatically. If you want to get the best deal possible, make sure you ask your insurance agent to go over all the available discounts to see which ones you may qualify for. This may take a little bit of your time, but in the long run it can save you a lot of money. 

Not Disclosing All Drivers

When buying a new auto-insurance policy, it is very important to disclose the information of all drivers who will be driving the vehicle on a regular basis. If you fail to do this and the insurance company finds out, your premiums could increase, and there is a possibility that your insurance company may drop you, leaving you uninsured. 

Start contacting insurance companies such as Able Insurance Agency to start comparing quotes.