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5 pitfalls to avoid when buying auto insurance

5 pitfalls to avoid when buying auto insurance

When you’re in the market for car insurance quotes, you may be hoodwinked into believing that the lowest price is the greatest value. But purchasing the wrong insurance can cost you an arm and a leg if things go wrong, so take the time to arrange the best deal.

Here are five costly pitfalls people often make when buying auto insurance.

Not shopping around

Make it a routine to review your auto insurance annually. Most motorists just renew their policy without comparing offers from other insurers or asking questions. Only 30 per cent of drivers get insurance quotes every year, and 70 percent automatically renew their policy.

To get the right coverage at the best price, get four to five quotes from different insurance companies when renewing your policy.

Purchasing the minimum

Most car owners purchase the minimum liability coverage mandated by law and think that they have enough coverage. Sadly, that’s not enough in some circumstances.

Before buying any auto insurance coverage, understand your assets and your financial risk if you get involved in an accident. Make sure your liability limits are in tandem with what you can lose. For example, if you hit a high-end automobile, the minimum liability coverage will not meet the cost of replacing it.

Ignoring reputation

When looking for the best car insurance, don’t compromise on customer service. You may pay low premiums but the insurer gives you very low damage estimates. As such, investigate an insurer’s reputation and policy details before buying any policy.

Misunderstanding what you’re purchasing

Some insurance companies provide products that are difficult to understand. As a result, most customers don’t figure out their policies until an insurance adjuster explains it to them after a crash. This can lead to rude surprises. To avoid such scenarios, read through your policy terms with your agent and make sure you understand all the inclusions and exclusions.

Lying to your insurer

Always provide accurate information to your insurance company. Drivers often lie about what their car is used for, where it’s parked at night and who drives it. You may assume that fudging facts can save you a few dollars on premiums, but it can jeopardize your entire coverage when involved in an accident.

Want to learn more about auto insurance? Contact EZ Insurance to speak with one of our agents today.