Insurance for your car is an important expense. As the beneficiary of an insurance policy, you may commit mistakes that could be costly in the long run. Here’s a look at three of the most common car insurance mistakes.
Not Shopping Around Before Signing On a Deal
Insurance is a mightily competitive world. If you just settle for the first deal you come across, you’ll miss out on a lot of interesting opportunities. To make sure you get the best rate possible, take some time to shop around. And once you sign up on a deal, do not take things for granted: Have a look at what’s hot on the market once a year. Insurers regularly come up with better, more competitive deals from year to year. You could save up hundred of dollars by keeping your eyes opened!
Keeping Things from Your Insurer
Not informing your insurer of a new driver driving your car, a modification to your engine or anything relevant might make you a save a few bucks, but in the long run, you’ll be the loser here. Remember that your insurer will be glad if he has a reason not to spend any money on you: Anything he didn’t know about will be a good motive not to cover your damages in the case of an accident. To avoid lousy surprises, tell your insurer everything. And do the same while shopping for an insurance deal: Before getting quotes from insurers, tell them about previous accidents and claims, previous speeding tickets, etc.
Going for a Low Deductible
A low deductible will make you save money in the case of an accident, of course. But your monthly payments will be higher, which is not a good thing. Raising your deductible from $500, 00 to $1000, 00, for example, will considerably reduce your monthly fees, making you save hundreds of dollars in the process. Not to mention that if your deductible is high, you’ll think twice about making a claim to your insurer after a minor accident. The fewer claims you make, the best rates you can get.
Mireille is a travel, music and theater enthusiast. She wrote for the stage and television, and is now working as a freelance blogger for Standard Life, a leading long-term savings and investment company providing Canadians with advices on Quebec pension plan.