These days there are more and more insurance companies popping up. It’s hard to turn on the television or listen to the radio without hearing something about how ‘this company can save you 15%’ or ‘that company is more trustworthy than the rest. It can be very easy to get caught up in the hype so today we are here to discuss a few mistakes to avoid making when shopping around for your next policy. Knowledge is power and that knowledge will also save you a pretty penny and quite a bit of stress down the road.
Common Insurance Traps to Avoid Falling Into
We completely understand that you have a budget to think about and a family to look after but sometimes spending a little more money is the best route to take. We aren’t saying you should go with the most expensive solution out there but by not having the right amount of coverage, you are putting the future of your household on the line. Technically you can legally drive with liability coverage but in the event of your car being totaled or there are physical injuries involved within your vehicle, this could leave you with no other choice but to pay directly out of pocket. While you won’t have to worry about covering damages that were caused to the other vehicle or person within if you were at fault, this can leave you completely vulnerable if said person doesn’t have the same type of protection. Unexpected expenses happen but these types of hefty bills are something you definitely don’t want to get involved in.
Honesty is Always the Best Policy
Many people find themselves tempted to fudge their answers slightly to receive discounts or lower premiums but this can make your insurance void in the event of an accident. Let’s say you’ve decided to say you only use your vehicle to drive to and from work or that you live in a different area code simply because you could save a few bucks each month. This could lead to serious financial troubles down the road. The cons definitely outweigh the positives in this situation.
Shopping Around Truly Pays Off
Most people on the lookout for an insurance policy are generally going to pay attention to price but it’s important to take a deeper look than that. While you may think companies you recognize are the best, that’s not always the case. Different insurance agencies have unique discounts but they also have different reputations. Take a good look at the background of each company you look into. Don’t only look at the positive feedback but also make it a point to pay close attention to the negative. You want to go with a business that you can guarantee will have your back in the event of an accident. Read the fine print and make sure you understand every aspect of your policy. The last thing you want to do is end up paying for something you don’t need or not including coverage that would benefit your family. Any time you aren’t sure, speak up and ask so when you sign that dotted line you know what to expect. Did we mention shopping around before locking in could literally save you hundreds, if not thousands of dollars every single year? Yes, insurance companies really vary that drastically!
Questions to Ask Before Committing: Save Green and Time
As you have probably gathered, selecting an insurance provider is a lot like purchasing a car. You shouldn’t commit to anything until you know what you’re in for. There are a handful of questions that are important to ask so you aren’t left with any surprises down the road and so you can quickly weed through agencies that just aren’t going to cut it for you.
If you have a good driving record, see if you can use that to your benefit. Find out if the company you are interested in offers safe driving discounts and if they do, you may just qualify. Sometimes you need to be an existing customer to take part, but not always. See if where you work will help minimize your bill. If you are a teacher or a student, you may be able to pay less every month. While you’re working on saving money, switching other vehicles onto your policy or including your home insurance may be worth looking into as well.
Knowing how to report a claim is also important because if an accident occurs your mind is probably going to be bogged down with worry. Keep this information and your agency’s contact number in your car with you at all times. Many customers also find it comforting to have a local agent so they can go speak to someone face to face if need be. This may be something to consider because many companies are only accessible online or via the web.
Featured images:
- License: Creative Commons image source
- License: Creative Commons image source
- License: Creative Commons image source
- License: Creative Commons image source
- License: Creative Commons image source
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