Most people know the basics of car insurance, and they know it's necessary, but that's about it. Especially if you're purchasing insurance for the first time, it can be tough to figure out. Because of how complex it is, it can be easy to make a mistake when you choose your insurance. Here's a look at the most common mistakes first time auto insurance buyers make, and how you can avoid them.
Mistake #1: Not being honest about your personal details
When filling out your application, it can be tempting to fudge some numbers. Maybe you take some of the distance off that you drive to work every day, where you'll be parking the vehicle, or your driving record. It saves a little money, and the insurance company will never know, right? While you may initially lower your premium with false information, insurance companies do have ways of finding out the truth. And if you've given them false information, you may find yourself with a canceled policy. Be honest from the start.
Mistake #2: Purchasing too much insurance
If you're purchasing auto insurance for the first time, it's easy to think that the more coverage you have, the better off you are. But that's not always the case. There are times when it doesn't make sense to carry comprehensive insurance (which covers your vehicle in an accident). Consider the car you're driving, and weigh that against what you pay for comprehensive coverage. Especially if you have an older car (which would mean you wouldn't be paid much on an insurance claim), you may decide that it's worth the risk to save that money each month.
Mistake #3: Not taking advantage of discounts
Instead of not being honest about your details, there's a much better way to save money on your insurance: taking advantage of discounts. Most insurance companies offer discounts for things like having a clean record, driving a vehicle with certain safety features, driving a low number of miles a year, working in certain professions, and more. Ask your agent, and work through the details to find any discount you are eligible for. All too often, people miss out on discounts that they simply didn't ask about or weren't aware of.
This is one of those areas where having a little knowledge can go a long way and save you a lot of money! Be informed when purchasing your car insurance. Know what you need, and know what's going to work best for you. Talk to a professional like Ed Ramming Insurance Agency Inc for more information.Share