It is only natural to want to save money on your car insurance. However, there are some things that you simply should not do, no matter how important it is to you to try to save money. These are some of the mistakes that you will want to avoid.
1. Scale Back Your Insurance Coverage Too Much
It is always smart to assess your coverage and to cut down on coverage if you have more than you need. If you cut down your insurance coverage too much, though, you might find that you don't have the coverage that you need if you get into an accident or otherwise need to file a claim. Make sure that you at least have coverage equal to what your state requires as a minimum. If your car is leased or financed or if you want to protect its value, you should also make sure to have comprehensive or collision coverage. Lastly, make sure that the deductible is low enough that you can afford to pay it in the event of an accident or other emergency.
2. Go With a Not-So-Reliable Company
If you find a lesser-known company that has good rates, you might think that it's worth changing insurance companies. Make sure that you only purchase insurance from a company that is in good financial shape and that has a good reputation for taking care of its customers and handling claims as it is supposed to.
3. Leave Someone Off of Your Policy
Lastly, make sure that you don't leave anyone off of your policy with an intention of saving money on premiums. For example, if you have a family member who has a bad driving record, you might be tempted to leave that person's name off of your insurance policy to try to keep your insurance rates down. If that person drives any of the vehicles on your policy, though, he or she should be added to your insurance. In fact, some companies even require you to list every person of driving age in your household on your policy, even if that person does not drive your car at all. Ask about who should and should not be added to your policy when signing up, and make sure that you don't leave anyone off. Otherwise, you could have problems with your insurance company, or you might find that your claims, if you have any, will be denied.Share