Car insurance can be confusing at times. Part of the confusion has to do with your premiums and what you’re actually paying for. Inevitably, the vagueness of your policy means that you are likely paying too much for your car insurance. There are many mistakes that people commonly make with their car insurance.
Since it is a difficult time financially for many people due to the rising cost of living, it is important to make sure that you have your car insurance working as it should and are not overpaying. In this article, we will go over some of the common mistakes that people make so you can avoid making them yourself.
1 – You didn’t shop around
Whether you have insurance now or are looking to get insurance for the first time, you have to shop around. The first quote that you get when searching for the cheapest car insurance Washington has to offer isn’t necessarily the cheapest one. You have to check different companies and even talk to some agents.
There is usually a financial incentive available for agents to get people to leave their current insurance company and switch to theirs. This gives them a strong motivation to find ways to get you the best quote possible to be able to lure you away from your current provider.
Not shopping around pretty much guarantees that you will be paying too much for your car insurance. You may also end up paying less than you are currently and end up with better coverage.
2 – Being overcovered
If you haven’t looked at your policy in a while then this is a good time to check on it. You may find that you have coverage for items that you really don’t need. The problem with that is that you are paying for that coverage.
To bring your premium down, you need to be paying only for the coverage that makes sense. It doesn’t make sense to be paying for things like fire and theft when you are not financing the car any longer. Once the loan is finished then you no longer have to pay for full coverage.
There are other extras that you may find lurking in your policy that you decide that you can live without such as coverage for hail damage or roadside assistance.
3 – You don’t use a tracker
There is a device that insurance companies will give you that tracks your driving habits. It will allow them to see how often you speed or take corners too quickly. It will record the times that you brake too hard or speed up too fast. All of this data is used to determine how much of a risk you are for them.
If you don’t do any of those things and are a safe and prudent driver then you will show them that you are very low risk and will be rewarded with a lower premium as a result.