Common Slip-Ups with Car Insurance
- Sticking with tried and true
Many people get stuck in a rut or take good ol' Dad's advice on which insurer to go with. What they don't often realize is that companies change over time and the standards which give Dad a lower premium might not benefit Junior who drives a used two door economy car. So, it would be wise to do a little price comparison shopping. See what else is out there. You just might get better coverage at a better rate. You never know if you steadfastly stick with tried and true. You might actually be sticking with over-priced and less than honest.
- Keeping coverage levels at status quo
Remember how proud you were when you bought that new car? Man, oh man, and you treated it with kid gloves. So, when you were asked what levels of coverage, you told your agent, take it to the max! Well, it's been years since then. You've taken good care of your pride and joy, but guess what? Nobody else sees it the way you do, including your insurance company. If it were involved in an accident and totaled, it would only pay the Blue Book value, regardless of how proud of it you still are. So, it boils down to this: You don't need all that coverage on your now used car. And if you will shake off the status quo from seven years ago, you could save a bundle on premiums!
- Ignoring policy reviews
As alluded to above, if you want to save, auto insurance isn't a one-time decision. In fact, many agents will actually offer to review policies of their customers annually. Many times they will itemize all the discounts you qualify for, and also help you decide if your coverages are still appropriate for the vehicles you drive and for your driving habits. Many times the result will be choices that will drop your premium payments significantly. And they might even expose you to pricing policies that you were unaware of. It might even lead you to look for another, better insurer. That wouldn't be so bad, would it?
- Filing nickel and dime claims
Are you one of those people who gets a scratch on their car from a shopping cart and calls their insurer for a claim? Hey, I pay for insurance! Why not!? More expensive premiums, for one. And many times such people are cutting off their noses to spite themselves. Because approaching their insurer this way always ends up increasing their rates (and those of other policy holders), they could actually save money if they paid for smaller damages out of pocket. And if you've never heard of a manufacturer's touch-up paint kit, you might want to look into it; they include paint that matches that of your make and model perfectly for just a few dollars compared to the hundreds a body shop will charge.
In the end, these things can be missed by the average, intelligent car owner. But now that you've been informed, you can avoid these slip-ups. And you'll see the benefits of avoiding them on your premiums.