Buying Car Insurance? Don't Make These 3 Mistakes
Are you getting ready to buy car insurance for the first time? If so, you'll want to avoid making the following mistakes.
Buying Based On Price
The biggest mistake that you can make is to buy a policy based on the price alone. You're likely getting quotes from multiple companies, but there is a lot more to an auto insurance policy than how much you pay every six months for your premium. It is possible that you are not comparing apples to apples, and that there is a reason why one policy is cheaper than the other. You may not have as much coverage with one policy compared to another, or even get inferior service.
Not Knowing Your Bodily Injury Coverage
There are many parts of an auto insurance policy that have fixed costs. For example, if you total your car, you know exactly how much your vehicle is worth and how much it will cost to replace it. The biggest mystery that you will run into is how much it will cost if someone gets injured. Auto accident injuries can be minor or catastrophic for either you, a passenger in your vehicle, or the other driver. That's why you need to know how much bodily injury coverage you have and if it is enough to make you feel comfortable.
When comparing policies, make sure you focus on the bodily injury coverage. It is possible that there are differences in this type of coverage that can make your premiums be very different in price. The last thing you want to have happen to you is to buy an insurance policy and discover that it is still not enough to cover the damages you cause in an accident.
Not Having Enough Cash On Hand To Cover Your Deductible
Another factor that can change your premium is your deductible. This is the amount that you pay when to use your insurance before your insurance company starts pitching in to cover the rest of the cost. It is important that you have enough cash on hand to cover the cost of the deductible because if you don't have the money you won't actually be able to use your insurance. Deductibles can end up being quite high in order to save money on your premiums, but it may all be for nothing if you can never pay that deductible.
Meet with a local auto insurance agent for more information about the policy that you need to buy for your vehicle.
