There are many challenges that people face when shopping for auto insurance coverage. For many, this task has the potential to be overwhelming and time-consuming. If you're one of those people who stands in front of a glass case at a car dealership for hours, asking questions and comparing quotes, there are a few mistakes you should avoid in order to streamline the process.
5 Common Mistakes When Getting Auto Insurance Quote
We all know that comparing car insurance quotes is a tedious process. But the good news is, it doesn’t have to be! In fact, if you avoid these five mistakes when comparing auto insurance rates, it will be much easier and you can save money too.
Comparing apples to oranges
It sounds basic but many people mistakenly compare one company’s quote with another company’s quote without first making sure they are the same type of coverage (liability vs comprehensive). To make things worse, many companies offer different types of policies so once again there's no way to compare them fairly unless you've done your research beforehand.
One mistake that some people make is not taking the time to compare all quotes from every provider. This may seem like an obvious tip but many people simply settle for their first quote they see without realizing that they could have gotten a better deal if they looked around. When it comes to finding your perfect insurance policy, being lazy will cost you.
Not understanding the jargon
If this is your first time shopping around for car insurance quotes it's important to know that there’s a lot of jargon involved. Terms like deductibles, liability limits and premium tax can be totally foreign if you haven't purchased or shopped around for car insurance before. So take the time beforehand to learn about them so you're not surprised later on.
Not asking for discounts
Insurance companies are always giving out discounts for safe driving, bundling policies together and even if you're a loyal customer. Make sure that you ask about all the available discounts to make sure that you get the cheapest rate possible.
Price should not be the only factor to consider when choosing a car insurance company. Make sure that they offer excellent customer service and maintain a solid reputation for providing quality coverage at an affordable price. A great warranty is also something that should be taken into consideration; many providers today offer lifetime warranties on their policies.
Do not allow yourself to be fooled by carriers who spend more money on their marketing campaigns than they do on service or coverage because it probably means that you're paying too much for your policy. Make sure that the company's website is user-friendly and well designed, which may also give insight into how organized and professional the company is overall.
Assuming your credit score won't matter
It's important to know that insurance companies use your credit score when determining your car insurance rates. Although times are changing and not all companies use credit scores to determine premiums, the ones that do will either increase or decrease your rate depending on if you have a good or bad score.
One common mistake that people make is to not check the company's BBB rating or any lawsuits they have settled in the past. Insurance companies are required to report this information so it's best to find out before you decide where you want your coverage. Another mistake some consumers make is assuming that a low price on an insurance policy means that they are getting an inferior product.
Not comparing the highest deductible possible
Having at least $250 to $500 in deductibles (especially if you're accident prone or get into a lot of minor fender benders) can save you hundreds over time. On the flip side, having low deductibles will result in higher premiums so make sure to compare quotes from different companies and see how much more your rate will change!
Even though it can be a time-consuming task, taking the time to compare all of your options before making a final decision will ensure that you get the best possible deal on your insurance policy. Even if you think that there's no way to save money on car insurance, by avoiding these five mistakes that many people make, you could potentially save hundreds of dollars per year.
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Moving on...
In this article, we talked about the five mistakes you should avoid when comparing car insurance quotes. These tips can help make a tedious process easier and will save you money too! If you're just starting out shopping around for auto insurance rates it's important to know that there’s a lot of jargon involved that may be confusing if this is your first time. So take some time beforehand to learn about these terms so they don't throw your off later on in the process. It's also equally as important to ask all available questions including asking for discounts or even mentioning if credit score could affect premiums so you get an idea of how much rates might change before deciding which company would work best for you. Finally, remember not compare apples with oranges by making sure you're comparing the same type of coverage. If this is your first time shopping around for car insurance quotes take some time to learn about all these terms so they don't throw you off later on!
You should also understand that insurance companies use your credit score when determining rates. Although times are changing and not all companies use credit scores to determine premiums, the ones that do will either increase or decrease your rate depending on if you have a good or bad score. So make sure you compare quotes from different companies and see how much more your premium will change!
In short, comparing car insurance rates is a multi-step process but taking the time to learn about each step before buying can save you hundreds in the long run. Take your time to learn about all the available discounts, the jargon and even using your credit score so when it's time to buy you're not overwhelmed by the process. Understanding the basics beforehand will help make this process much smoother and save you money too!