3 Car Insurance Coverage Mistakes To Avoid
When it comes to your car insurance, you want to make sure you have enough coverage to keep you protected, while not paying too much for your coverage at the same time. There are a few mistakes you can make with your car insurance coverage, and these mistakes can cost you.
Mistake #1: Going with a Deductible That Is Too Low
Many people wrongly go with the lowest possible deductible, think that a low deductible will save them money. However, a low deductible will not actually save you money. In fact, when you choose a very low deductible, you are going to pay, with a higher insurance premium. You will have to pay more every month to cover your premium when you go with a low deductible.
Instead of going with the lowest possible deductible, set your deductible at a rate you can afford to pay if you got into an accident today. Invest the money that you save on your premium by raising your deductible, and use it to create a savings account.
Build up your savings and continue to increase your deductible over time. This will allow you to reduce your monthly premium bill, just by saving money in case you ever need to pay a deductible.
Mistake #2: Paying Monthly for Your Coverage
Another mistake people make is paying for their coverage on a monthly basis. When you opt for monthly payments instead of paying every six months when your plan renews, you are just adding money to your plan.
The additional cost can add unnecessary expense to your insurance premium. Work to save your money, and pay for your insurance coverage twice a year, instead of every month. This will allow you to save money and cut down on the stress of monthly payments.
Mistake #3: Staying with the Same Company
Some insurance companies offer loyalty discounts if you stick with them for an extended period of time, but not all insurance companies do.
Not shopping around and seeing if you can get a better rate somewhere else can leave you stuck paying more money than you should for insurance coverage. You should always shop around; you can either switch to a company that offers a better rate or use that information as leverage to help get a better rate with your current company.
When it comes to your auto insurance coverage, don't assume that a low deductible will save you money. Gong for a higher deductible can help lower your premium, as can paying your premium all at once. Shop around at least once a year to make sure you are getting the best coverage at the best possible rate.
