Every motorist is on the prowl for cheap auto insurance, but the route to cheap coverage is fraught with numerous dangers. You need to know what these dangers are so that you can protect yourself. Here are three ways to ensure that your search for affordable auto insurance doesn't leave you exposed to different risks:
Don't Trim Your Coverage Too Much
One of the best ways of reducing auto insurance cost is to eliminate coverage you don't need. However, it is easy to get carried away and limit your coverage to the barest minimum, which doesn't offer great protection. For example, you may be tempted to eliminate collision coverage and buy the minimum liability coverage as required by your state. Unfortunately, unless your car is dirt cheap, eliminating collision coverage exposes you to high repair bills in cases of accidents. Minimal liability coverage means you risk losing your prized assets should you cause an accident whose damages outweigh your coverage limit.
Make Sure Everybody Is Covered
Another way of reducing auto coverage rates is to exclude some drivers from your policy. This trick is especially effective if the excluded drivers are considered high-risk by your insurance carrier. For example, teenagers and motorists with multiple driving valuations can raise your coverage rates, and it can be tempting to exclude such drivers from your policy. However, think carefully before doing this because your insurer won't compensate you for any damages caused by excluded drivers. Only exclude such drivers if you are sure they won't be driving your car; otherwise, include them and look for other ways of reducing your rates.
Be A Hundred Percent Honest
A fib here and an omission there may help you score low coverage rates, but they will cost you more money and misery in the long run. For example, you may decide not to inform your insurance company about the cousin who has come to live with you for a couple of years or to name yourself as the main driver for your teenager's car (this practice is called fronting). An insurer can easily cancel your policy if it discovers that you lied to them.
Talk to an auto insurance agent before making any questionable move that will cost you in the long run in the name of affordable coverage. If you are looking for dirt cheap coverage there are high chances that your finances aren't that great; don't make the situation worse by making mistakes that can cost you more money in the long run. Contact a company like Lanham Insurance Agency to learn more.