How To Avoid The Potential Complications Of Cheap Auto Insurance

Adding a teenage driver to your auto insurance policy can impact cost. Learn how to put your teen behind the wheel safely and affordably.

How To Avoid The Potential Complications Of Cheap Auto Insurance

13 March 2017
 Categories: Insurance, Blog

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.

About Me
adding a teen driver to insurance policies

Adding a teenage driver to your auto insurance policy can have a very serious impact on the cost of your premiums for the year. What is the best way to go about adding a teen to your insurance policy while ensuring that he or she and the other drivers on the road and your vehicle are fully protected? My blog is all about your teenage driver. You will find tips for reducing the cost of adding your teen and tips for keeping your teen driver safe while out on the roads without you watching carefully. It is my hope that what I have provided will assist in helping your teen driver get behind the wheel safely.