4 Biggest car insurance mistakes
Believe it or not, there is a right way and a wrong way to buy car insurance. You may not know it, but every single day Canadians make mistakes when it comes to purchasing car insurance. On top of that, there’s a good chance you’re making car insurance mistakes with an insurance company or filing a claim. That can stop today.
If you’re a driver and have a car, you need car insurance. Use these tips to help you get the most out of your car insurance.
Here are four common car insurance mistakes to avoid:
1. Paying too much for premiums
Insurance is a financial product that you always need to pay for, but (if you’re lucky) may not always need. Getting protection for yourself and your vehicle is important; in fact, the law requires it. That doesn’t mean you need to overpay for your car insurance premiums, though.
When shopping around for the best car insurance rates talk to a licensed insurance agent to find out which type of insurance is best for you and your vehicle. Overpaying for coverage you don’t need is a huge waste of money. One of the easiest ways to decrease your insurance premiums is to increase your deductible.
2. Not filing a claim in fear of an increase
Often, drivers don’t file an insurance claim because they assume their annual premiums will increase once the company pays that claim. The Globe and Mail says this is a big mistake:
“To avoid seeing their auto insurance rates rise, some drivers choose not to file a claim with their insurance company and pay for the damage to the cars out of their own pocket.
The danger with that is there is no guarantee that the driver responsible for the collision will agree with the repair quote or pay up in a timely manner. Drivers involved in an accident can always call their insurance company, get advice and then decide whether or not they want to file an insurance claim.”
If you run into a situation that involves the need for a claim, make sure you file in a timely manner.
3. Letting payments lapse
When you miss a car insurance payment the insurance provider cancels your coverage. That’s a major problem since most provinces require a minimum amount of insurance for all drivers on the road. If you miss a car insurance payment, for whatever reason, contact your insurance company as soon as possible and make other payment arrangements. This will keep your car insurance valid and up to date.
4. Not buying enough insurance
Not having enough car insurance is just as big of a car insurance mistake as buying too much and overpaying for premiums. If the cost of the insurance policy you need is too expensive, ask for discounts. Many insurance companies offer discounts based on a good driving record, years of driving experience, your age, and your profession, among other things.
It’s better to get the coverage you need and ask for discounts on the premiums than it is to not purchase enough insurance. Paying a little bit more per month will help you save money in the long run if you ever have theft or damage to the vehicle.