Nobody likes buying car insurance. It’s never appreciated until you need it, and it can be a significant part of the cost to drive a car. What you want is a car insurance policy with the maximum coverage for the minimum price. Avoiding costly mistakes can get you to that goal.
Finding the right insurance coverage is just as important as finding the right car, and the decisions go hand in hand. What car you choose affects your insurance options, and your insurance budget can limit what car you can drive.
In most states, it is illegal to drive uninsured, so finding the right car insurance coverage is a critical step to getting on the road.
Take a look at the following tips to avoid common Car Insurance Mistakes that can cost you a lot.
1. Not Shopping Around
Insurance buying is a lot like car buying. You have to shop around to find the best deal. One insurance agent may be able to get you free quotes from several companies, or you can be your own advocate and research different companies and policies online.
You want to start shopping well before you need to buy insurance so that you don’t have to choose a policy just because there isn’t time to research all of the options that may be available. In some states, you can’t leave the dealership with a new car unless you can show that you have car insurance. Most lenders require that you have insurance on any vehicle that they have loaned money on.