4 Costly Mistakes to Avoid with Car Insurance

Everybody who drives needs car insurance, but why pay more than you need to for it? Sadly, many drivers are wasting money each month or year by making costly mistakes when insuring their vehicle.

If you’re getting a new car or your insurance policy is up for renewal, you will probably want to make sure that you are getting the best deal while still benefitting from the best cover available for you. Here are some common mistakes that can cost you when insuring your car.

Not Shopping Around:

If your car insurance policy is up for renewal, then it can be convenient and easy to just take the renewal quote offered to you by the company that you were previously insured with. However, this can be a costly mistake. Car insurance companies don’t reward loyalty, and you’re much more likely to find a cheaper deal by shopping around and taking out a new policy with a different company. If you are in the market for car insurance, use a car insurance comparison site to find the best deal for you. Simply enter your details and vehicle details and you will be presented with a list of quotes to choose from.

Looking around and comparing prices can save you hundreds of dollars each year on your insurance premium, so it’s definitely worth the effort. Lone Star State drivers make their Texas SR22 insurance savings by carefully browsing different rates and coverage options. It also pays to re-shop your car insurance when you have a major life event, such as getting married or buying a house.

Too Much or Too Little Coverage:

When you get car insurance, make sure that you get the right amount of coverage that you need. Under or overestimating how many miles you drive per year, for example, can be a costly mistake to make. Overestimating the number of miles you drive can lead to needlessly paying more for your insurance, while on the other hand, if you underestimate the number of miles you drive, you could end up having to pay more in the event of a claim or when your policy comes to an end. So, it’s important that you are as accurate as possible.

Including Breakdown That You Don’t Need:

Many insurance companies offer breakdown cover as an extra feature. Agreeing to it can seem like a good idea at the time; you don’t need to worry about getting separate cover as it’s all included with your insurance cost. However, shop around before you decide. You might find that actually, you can get breakdown cover free from your bank or credit card company.

Forgetting to Update Your Policy:

A lot can change in a year, and if you don’t update your car insurance policy to match, you could end up paying more than you need to. For example, if you were driving to work every day when you first got your car insurance policy, but are now working from home, you may be paying more for social and commuting when you only need a policy that covers social driving. Similarly, if your job status changes, this could alter the price of your policy. Make sure that you update it whenever a life change happens.

Making simple mistakes could lead to you paying far more than you need to when it comes to car insurance.