Auto insurance is essential for many reasons, not just because it's a legal requirement. It protects you against reckless drivers, vandals, and even your own mistakes. Unfortunately, too many people make poor decisions when buying coverage. Below are some of the mistakes to avoid when shopping for auto insurance.

3 Car Coverage Missteps 

1. Forget About Discounts

Most insurers offer discounts on premiums for many policyholders. For example, if you purchase multiple policies—such as home and auto insurance—from the same provider, you'll pay less than if you bought them separately. Others offer safe driver discounts for drivers who have not had an accident or moving violation in three years. Teen drivers who earn good grades can get discounts too. Always ask your insurance agent if you qualify for any discount pricing.

2. Base Choice on Price

Instead of purchasing the cheapest policy available, look for the best value. If you can find a policy that offers higher limits, lower deductibles, and fewer exclusions for only a few dollars more per month, it's worth purchasing it. You'll thank yourself if you ever have to file a claim. Always consider the terms of the policy as well as the monthly premium price.

3. Neglect Risk Tolerance

People who are very adverse to risk should consider reducing the deductible amount. It costs more per month, but if you ever file a claim, you'll pay less money out-of-pocket to have your car repaired. If you are more risk-tolerant, you might prefer to pay less per month and accept the risk of paying more out-of-pocket if and when you ever file a claim.

For affordable auto insurance, contact First State Insurance Agency in Beatrice, David City, Hickman, Lincoln, Wilber, and Yutan, NE.  In addition to auto insurance, they also carry home, business, life, crop and farm insurance. Call them at (402) 979-7585, or visit their website to request an insurance quote.