Finding the right auto insurance can seem overwhelming. A quick internet search will provide you with hundreds of companies and policies to choose from, each claiming to get you the most coverage for the least amount of money. So how do you know which one is best for your needs? We’re glad you asked…
The most common mistake people make when they’re buying auto insurance is getting too much or too little coverage. In many states, drivers are only legally required to carry liability insurance. This type of policy will cover damages to a third party and their property, but won’t cover the driver (in most cases, you). If you find yourself at fault in an accident that causes damage to another vehicle, your liability insurance will cover those damages; however, if your car needs repairs, you’re on your own. While the low monthly cost of these policies can be incredibly tempting, the lack of coverage on your own vehicle could end up costing you thousands of dollars.
On the other hand, an insurance policy with too much coverage can also be costly. If you’re driving a used sedan, you’re not going to need the same policy as someone with an expensive sports car. While these policies will cover typically cover high-cost repairs, they often come with an expensive monthly premium and deductible. You could also end up with overlapping coverage. For example, most personal health insurance policies will cover medical expenses resulting from a car accident, which means you don’t always need an auto insurance policy that does the same. It’s important to check all of your existing insurance policies so you know exactly what each one will cover.
Another mistake consumers make is opting for policies with a low monthly rate that carry a high deductible. While this kind of optimism is admirable in most situations, when it comes to insurance, a “hope for the best” attitude can often do more harm than good. You’ll save a little every month, but a high deductible means that could end up paying for thousands of dollars in repairs. When shopping for the right policy, make sure you weigh the monthly savings against the potential out-of-pocket costs.
It’s also important to update your insurance policies with major life changes. If you change jobs and end up with a shorter commute, you could qualify for a lower rate. Buying a home, becoming a parent, improving your credit, or even retiring can affect your insurance rates. Working with an insurance expert who understands your personal needs is the best way to get the right coverage through every stage of your life.
Our team of experts is always ready to help you find the insurance policy you need. Get started today!