When you're in the market for auto insurance, doing your research can help you save money and ensure that the coverage you purchase makes the most sense for your circumstances. As you begin the process, here are some common insurance mistakes you would be smart to avoid.

Auto Insurance Mistakes You Should Avoid

1. Selecting a Deductible That is Too High

While you can increase your auto insurance deductible to pay a lower premium, that's not always a good idea. If you don't have enough money in your emergency fund to cover the higher deductible, that could lead to a situation where you don't have the funds to repair your car and get back on the road. Choose a policy with a deductible that you can afford.

2. Ignoring Potential Discounts

Insurance companies are willing to give you discounts for various conditions, such as bundling your auto, home, and life insurance together, paying the premium in full for the year, driving a limited number of miles per year, or for having a clean driving record. Before agreeing to terms on an insurance policy, you should discuss your eligibility for these various discounts.

3. Collision and Comprehensive Coverage

Including collision and comprehensive coverage on your auto insurance policy isn't always the best option. Since these coverages are used to repair or replace your vehicle, if your car isn't worth much money, you shouldn't pay for them. It wouldn't make sense to pay $1,000 a year on coverage for a vehicle that is only worth $5,000.

4. Buying Minimum Coverage

In Missouri, you must have liability coverage that covers bodily injury and property damage. The minimum amounts are $25,000 per person for bodily injury, $50,000 total for bodily injury per incident, and $10,000 for property damage. However, the minimums might not be right for you. If you are found liable for amounts more than your limits, you will have to pay the rest out of pocket. With that in mind, you should consider getting more substantial liability coverage, mainly if you are a person with a high net worth who could be sued following a costly accident.

5. Failing to Shop Around

Just because you've been with one auto insurance company for your entire adult life doesn't mean you should stay with them forever. You can almost always get a better rate by shopping around and comparing prices from multiple insurance carriers.

If you are looking for auto insurance, turn to Financial Strategies Group DBA Arlene Lear Insurance. With two convenient locations in Bolivar and Humansville, MO, their knowledgeable team offers personalized service to meet all your specific insurance needs. Call their Bolivar office at (417) 777-3000 or their Humansville location at (417) 754-8377 to get a quote, or visit their website for more information about their services.