Auto insurance is a requirement in most states. It helps pay for any accidents you may cause and any resulting hospital bills and legal fees. Even so, many drivers are not particularly diligent when it comes to choosing a policy, which can lead to confusion or situations where they aren’t fully protected. Below are a few common mistakes to know about to ensure you have the best possible protection. 

4 Preventable Errors When Purchasing Auto Insurance

1. Not Understanding Coverage

You want to have a clear understanding of your auto insurance policy. Don’t be afraid to ask your agent questions or do your own research. This will prevent you from buying coverage you don’t need and won’t leave you wondering whether you are protected if an accident occurs. 

2. Not Considering More Than Price

Choosing the cheapest policy available might sound smart, but if you haven’t considered the policy’s other terms, you might be left unprotected. Avoid this by also comparing the limits and benefits available.

3. Not Shopping Around

When you have a busy schedule, it’s easy to say yes to the first policy that an agent presents. However, if you take a little time to compare coverage, you’re more likely to get the best deal for the most protection. 

4. Not Taking Enough Coverage

Many states have minimum liability coverage, but this may not actually be enough for your needs, which could leave you paying out of pocket or open to lawsuits. Prevent this by choosing a coverage limit that amounts to the total value of your assets. If you want to also keep premiums low, consider a collision or comprehensive policy with a higher deductible and pay any routine repair costs out of pocket. It’s better to have coverage for major damage than for small issues that pop up.

The first step in choosing an auto insurance policy is turning to a dependable insurance agency. For more than 70 years, Reid Insurance Group in Lovington, NM, has provided dependable service to southeastern New Mexico and western Texas. Through their select group of partners, they provide clients with a range of auto, business, health, and life insurance products to ensure their needs and preferences are fully met. Speak to one of their agents about your coverage needs today by calling (575) 396-6364, and visit their website to learn more about their services.