6 Severe Mistakes Buyers Make When Shopping For Car Insurance

Auto insurance mistakes today will end up costing you hundreds and even thousands of dollars tomorrow. Your mission as someone who is searching for the right auto insurance provider is to not just search for insurance. Your mission is to search well and do a lot of research. It might take some time but finding the best insurance company is important. Make sure that you don't make one of these common mistakes when searching for an insurance provider.

1. Buyers forget to shop around

One of the first mistakes that buyers make is choosing the first company that comes their way. This is a huge mistake because company one may have given you $250 a month on your car insurance premium. You might be thinking to yourself, this is such a steal and you rush and make the decision. However, that is when the mistake is made. When you make a rush decision based on your emotions, then you miss out on the opportunities of the future. If you would have received quotes from a few more companies, then you might have received a quote for $175 from company two or three. Don't run with the first company, take your time and receive quotes from multiple insurance companies.

2. Buyers forget to check locally.

Receiving a quote online can be quick and easy, but you are doing yourself a disservice if you don't stop by your local car insurance company. The reason that this is so important is because you can talk to an agent face to face if you have any concerns about your insurance plan. Also, you might be able to receive discounts from your local insurance provider, that you would not have received otherwise. Let me share my experience. I bought a new car and I was able to save almost a hundred dollars by driving down the street to a State Farm insurance agency in Fort Lauderdale, FL. Originally, I was going to shop at GEICO, which usually gives me better quotes. However, this time I was able to save by going local and taking advantage of their perks for local customers. You might think that you are making the best choice by shopping online, but don't dismiss the importance of shopping locally. You might end up getting a steal.

3. Buyers forget to create bundles

Most buyers leave so much money on the table by forgetting to bundle insurance policies. If you get your home and auto insurance policy from the same provider, you will be able to save anywhere from 5% to 25% with their multipolicy discount. For example, with State Farm you could save as much as 20% with this discount. Progressive helps you to save 5% with this discount. Allstate helps you to save up to 25% on home and auto insurance. I encourage you to do your research and choose the company that makes the most sense for you and your family.

4. Buyers forget to take advantage of the discounts.

Every insurer is wired differently. Some offer insurance discounts that you can't find anywhere. For example, State Farm offers their Drive Safe & Save program that helps good drivers save up to 30% on their premium. Farmers insurance offers a youthful driver discount for drivers under the age of 25. Nationwide offers an accident-free discount for drivers who maintain an accident-free record. Nationwide also offers their SmartMiles discount. Why pay more than you should pay? SmartMiles helps you to save on your monthly rates based on how many miles that you drive. In whatever insurance company that you choose, make sure that insurance discounts are one of the factors that helped you to make your decision.

5. Buyers forget to get the right amount of coverage.

We have all heard of many cases, where someone gets into an accident and has no coverage to pay for vehicle or bodily damages. Always remember that you get auto insurance for protection. Allow me to say that again, you get auto insurance for protection! If liability is all that you can afford, then I understand. However, if you can afford it, then I highly encourage you to get the right amount of coverage for your car, yourself, your wife, and your kids. Don't wait until it's too late. Make sure that you do it now.

6. Buyers forget that their credit scores matter.

Don't make the mistake of letting your credit score slip. We can all get lazy with our credit score thinking that we will not have to make any important purchases in the future. However, we tend to forget that car insurance is another essential purchase. Over 90% of auto insurance providers use a buyer’s credit score to factor auto and home insurance quotes. Start building and taking care of your credit score now. Make sure that your credit history is healthy and make sure that you are paying your bills on time.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes