Shopping for a car insurance policy? If so, then you want to find the best deal on the coverage you need. But with so many auto insurance carriers out there, how can you know which company and policy are right for you? As you explore your options, there are a few common mistakes you'll want to avoid that could cost you in the long run. By steering clear of these mistakes, you'll be on your way to choosing the right policy in no time.
Any reputable insurance company will offer discounts to policyholders who meet specific conditions, but not all carriers offer the same discounts. This is where it can pay to shop around and inquire specifically about the special discounts each company offers. For example, one car insurance company might offer a discount for drivers who bundle their home and auto policies, whereas another company may not. Meanwhile, one insurance carrier might only offer a particular discount for the first six months of your policy, while another company may offer a discount indefinitely. Taking the time to ask about discounts and their longevity will help you make a better decision regarding your coverage.
Choosing the Wrong Deductible
A deductible is the amount you'll be expected to pay out of your own pocket before your insurance will kick in for a valid claim. You'll be able to select your own deductible when you build your auto insurance policy, and choosing a higher deductible will result in a lower monthly payment. Sounds great, right? Just make sure the deductible you choose isn't so high that you won't be able to comfortably afford it if you ever do need to file a claim.
Buying Based on Price Alone
While it may be enticing to automatically choose the insurance carrier that can offer you the lowest price on your car insurance, the reality is that you get what you pay for when it comes to auto insurance coverage. Take the time to really scrutinize your quote and make sure your coverage limits for liability, property damage, and personal injury protection are enough to make you feel comfortable behind the wheel. And keep in mind that you might also need comprehensive and collision coverage, especially if you're still making payments on your car. At the end of the day, choosing the right insurance policy is about finding the best value for the coverage you need—not the cheapest price.
For more information, speak to an agent at a company like Reinhardt's Insurance Agency.