4 Common auto insurance mistakes
Buying a new car is exciting. However, the price of your new make and model is only the beginning of the costs associated with owning a car. There are other expenses that come with your new wheels after you leave the dealership, including registration, ongoing maintenance, parking, and, of course, insurance.
The truth is all drivers need insurance and there is a right way and a wrong way to find the best insurance rates.
Here are common mistakes people make when buying auto insurance:
1. Taking the first offer
This is a big mistake. The key to finding the best auto insurance coverage in Canada at the best price is to shop around and compare quotes. You wouldn’t buy the first car that you test drove would you? Why would you do it with car insurance?
It’s best to speak with a licensed insurance agent from at least three providers and get the best rates possible and remember to compare apples to apples. If you ask for new car replacement insurance with the first provider be sure to compare prices for the exact same coverage and services with the other providers. This way you’ll be sure you’re getting the best deal possible for the coverage you need.
2. Automatically renewing without shopping around
This is one of the most common auto insurance mistakes, letting your policy automatically renew is the easiest option, but it’s not always the most beneficial. Car insurance policies usually renew every year so if you don’t get the best price the bad news is you’re locked in for a year. However, the good news is you can shop around again in a year and change insurance providers if need be.
Always start shopping where you’re familiar. If you have other insurance policies such as home or life, contact those companies and ask about adding auto insurance onto your coverage. Often, you can get a discount for having multiple policies with the same provider.
3. Forgetting to ask for discounts
Speaking of discounts, did you ask for discounts when you purchased your auto insurance policy? If not, you should absolutely do it next time. Paying for auto insurance is a given if you have a car, but that doesn’t mean you have to overpay for it.
Be open and honest with your insurance company. Tell them everything about yourself from your profession to your driving record. You just never know where you can find discounts and saving every little nickel counts.
4. Skimping on coverage to save money
It may seem like a good idea to save a few bucks every month on your car insurance. Unfortunately, if you have an accident, theft or other damage to your car, it won’t seem like a good idea anymore. The price to repair or replace your car can be thousands of dollars, doesn’t it seem like a better idea to pay a few extra dollars every month to make sure you’re fully protected? Yes, I think it does.