Making financial planning mistakes is a normal part of life, but some can turn out to be quite costly. This is the case when the wrong auto insurance is purchased. Not taking the time to explore your options can result in higher premiums and out-of-pocket losses should you need to file a claim. As such, it’s important to approach the shopping process properly. Here are a few common errors to steer clear of when making policy decisions.

What to Avoid When Shopping for an Auto Insurance Policy

1. Only Buying the State’s Minimum Requirements 

The majority of states require drivers to carry a minimum amount of liability coverage. However, this rarely provides enough protection in the event of an accident. If you’re at fault for a crash that causes injuries and substantial property damage, it’s likely you’ll need more coverage to pay for the other party’s losses and any legal fees that may arise. Also, you should consider collision, comprehensive, and uninsured motorist coverage to reimburse you on your own vehicle if it’s stolen or damaged. 

2. Failing to Understand What’s Covered

It’s crucial to read your policy thoroughly, so you know what’s included in your coverage. People often assume specific events will be covered only to find out they aren’t when it comes time to file a claim. If you need any clarification about the terms of your policy, be sure to talk it over with your agent. This will help determine if you have any gaps in coverage that need to be filled in with higher limits or additional products. 

3. Not Asking How to Save 

Most auto insurance companies offer a variety of ways for policyholders to reduce their coverage costs. However, it’s not possible to know about all the discounts you qualify for unless you ask your agent. You may be able to lower your premium for having a clean driving record, getting good grades, bundling multiple policies, working in a certain profession, or taking a driver’s safety course. Not inquiring about potential discounts can cause you to miss out on significant savings. 

If you’re in the market for auto insurance, let the professionals at Kleppinger Insurance in Bethlehem, PA, help you navigate the shopping process. As independent agents, they’ll give you access to a network of reputable carriers to ensure you find the best coverage solutions at the lowest rates available. Over the last two decades, they’ve partnered with many residents in the surrounding communities to provide reliable protection against life’s unexpected events. Call (484) 357-1485 to schedule a personal insurance review, or visit them online to request a quote.