Finding the right auto insurance policy that fits your needs and budget can be easier said than done. That’s because there’s so much information out there, the search can be intimidating. With a bit of foresight, though, you can cut through the clutter. Here are several mistakes you’ll want to avoid before buying coverage for your vehicle.
4 Common Errors When Purchasing Auto Insurance
1. Not Shopping Around
It pays to compare rates from at least five providers. You’ll be able to determine which ones offer the most bang for your buck. Even if you’ve been with an existing carrier for some time, you should still consider looking at others before your renewal date.
2. Looking at Rates Only
While securing budget-friendly coverage is important, don’t let it be the deciding factor. Take the time to consider other features such as customer service reviews and claims processing track records. Type in “insurance company ratings” in an online search engine to locate independent data, which can also help you make an informed decision.
3. Not Knowing What Coverage Is Needed
If you’re a first-time shopper, knowing which type of auto insurance to secure can be confusing. For instance, if your vehicle is being financed by a bank or other lender, you’ll typically need comprehensive and collision coverage until the loan is paid off. Drivers of older vehicles may be satisfied with their state’s minimum liability requirements. Teen drivers added to a parent’s policy could need additional protections. An experienced agent can provide guidance on which coverage will work best for your needs.
4. Selecting the Wrong Deductible
It helps to know how a deductible works. If you’re involved in an accident, most auto insurance providers require you to pay a certain amount of out-of-pocket costs for repairs and related costs before they pick up the tab. This deductible generally ranges from $500 to $1,000 but can be set at a higher amount. The lower your deductible, the higher your premium payments may be—and vice versa. If you’re going with a higher deductible to save a bit of money, be sure you have those emergency funds to tap into if you’re ever in an accident.
High Rock Insurance Agency in Lexington, NC, specializes in helping its clients secure customized and affordable coverage. The team of friendly and experienced agents will gladly walk you through the process of choosing auto insurance you can count on. As an independent agency, they’re able to compare rates and terms from several leading carriers. For a free, no-obligation insurance quote, call (336) 236-9022 or request one online.