While most people don't enjoy paying their auto insurance premiums, your insurance provides an extremely valuable safety net in the event that you cause an accident or if your vehicle is damaged or stolen. Purchasing auto insurance should not be taken lightly-- having the right policy is essential. If you plan on buying a new auto insurance policy soon, avoid these common mistakes:
Not Having Enough Coverage
Most states require drivers to carry a liability insurance policy, but the amount mandated is typically quite low. If you happen to cause a car accident that results in serious injury and vehicle damage, it is important to have an auto insurance policy with coverage that will provide a sufficient settlement for the other driver involved. Many people do not realize how high an auto insurance claim can be, especially when there are injuries involved. Do yourself a favor and talk to an insurance professional about how large of an auto insurance policy you should carry according to your financial situation.
Choosing the Cheapest Policy
A lot of people want to save money on their auto insurance, but automatically purchasing the cheapest policy is not a good idea. What you should look for is the best value. A good auto insurance policy will fit in your budget, while also providing ample coverage in the event that you need to make a claim or a claim is made against you.
Failing to Disclose All Drivers
Whether you have a teen driver or a person with a bad driving record in your household, it is extremely important to disclose all drivers when purchasing a new auto insurance policy. If you have drivers living with you and you don't tell the insurance company that they use the insured vehicle regularly, there is a possibility that the insurance company can cancel your policy if they discover the fact. It is also possible for an insurance company to deny a claim if it involves a family member that was not included as a driver on the policy.
Neglecting to Read the Terms of Your Policy
Reading an insurance policy is not very entertaining, but it is very important. Prior to purchasing an auto insurance policy, it is in your best interest to understand the terms, know exactly what is covered, and be clear about your deductibles and coverage amounts. Carefully reading a policy will help ensure that you have insurance that will provide the best financial protection.
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