As people seek ways to save money since the cost of living is rising constantly, the first place to look should be with your car ownership. Car insurance seems like an area where you just have to pay what they tell you to pay, but that isn’t actually the case. The problem is that car insurance is not easy to understand and is often more expensive than it needs to be.
Many people make a lot of mistakes with their car insurance and it ends up costing them in the long run. You may find that you’re paying too much because of these mistakes. You may also find that you are not covered for things you had assumed you would be covered for. In this article, we will go over some of the mistakes to avoid when it comes to car insurance.
1 – You don’t shop around
Your car insurance typically lasts for a year and then you need to renew it. Most people let the renewal happen automatically. The best thing to do is to shop around and see if you can find a better deal. Start out by searching for the cheapest car insurance California has and go from there. You’ll get a few sites to look at and get a few quotes.
It is a good idea to actually call for the quote because there are sometimes incentives for the agent to find a way to get you to switch. There may be a special price if you are switching insurance companies that you can take advantage of.
Even if you don’t save any money you may end up with better coverage than what you were getting for the same price you were already paying. This could end up saving you a lot of money in the long run if you ever need that extra coverage. If you didn’t have it then you might have had a large out-of-pocket expense.
2 – You have too much coverage
There are likely some parts of your policy that are simply not relevant to you. Very often, when people finance a car they have to have full insurance. Once they are finished paying it off they should get rid of some of the comprehensive coverage but neglect to do so. If this is you then you are probably carrying theft protection when your car is not likely to ever get stolen.
Or, you may be paying the maximum coverage in case of an accident when your state has lower minimums that you could switch to and save money that way. This can save you hundreds of dollars every year.
3 – You’re a bad driver
Bad drivers end up paying far more for car insurance than they should. An accident will not only have you pay for the accident but your insurance will skyrocket for years after. Speeding tickets also add to your premium when points get placed on your policy. Drive the speed limit and focus on defensive driving and your insurance costs will go down every year.
