Shopping for auto insurance is far from the most exciting thing in the world. However, when you're behind the wheel, having the right coverage can give you added protection and invaluable peace of mind. And of course, nobody wants to spend more than they need to on car insurance — so by being aware of some common (and costly) mistakes, you can avoid wasting your hard-earned money.
Carelessly Choosing a Deductible
The deductible on your policy is the amount you'll be expected to pay out of your own pocket if and when you make a claim. The lower your deductible, the higher your monthly payments will be. With a higher deductible, you'll enjoy lower monthly payments but will be forced to pay more out of your own pocket in the event of a claim. Be sure to choose a deductible that makes sense for your unique situation so you're not overpaying on your monthly premiums or setting yourself up for financial stress if you need to file a claim.
Settling on State-Minimum Coverage
Minimum auto insurance coverage amounts vary greatly from one state to the next — and there are certainly instances where it may make sense to carry just the state minimum insurance. However, in many cases, having minimum insurance coverage means you could be left footing medical bills, property damage, and auto repair costs out of your own pocket after an accident. And remember, if you're making payments on your car, your lender most likely requires you to carry more than state-minimum coverage.
Foregoing Underinsured/Uninsured Motorist Coverage
One type of coverage you should never overlook is that of underinsured/uninsured motorist coverage. This coverage protects you if you're involved in an accident with somebody who doesn't carry insurance or doesn't carry enough coverage to pay for your medical bills and related expenses. When you consider the fact that an estimated 13% of all drivers in the United States are either underinsured or uninsured, having this type of coverage in place can give you some much-needed peace of mind.
Letting Your Coverage Lapse
Missing a payment or failing to renew your coverage can result in a policy lapse. When your coverage lapses, not only are you risking driving without insurance, but you may also end up paying more to renew your policy. If it helps you avoid a lapse, consider setting up automatic payments on your car insurance or even setting a reminder on your phone to renew your policy every six months.
For more information about auto insurance, contact a company like Affordable Insurance.
Share28 July 2020
About a year ago, I started thinking more seriously about choosing different insurance. I was focusing on all of the different aspects of insurance, and it was really interesting to me to see how much I could save by switching services. It was a lot to process, but before I knew it, I was able to completely overhaul my insurance coverage, and it made a tremendous amount of difference for me. This blog is here to help other people to know what to look for in insurance coverage so that they can enjoy a happier tomorrow. Check out this blog for more information.