Avoid Costly Mistakes When Purchasing Car Insurance – 5 Common Mistakes that Can Cost You

If you drive a car, you need car insurance. This is a plain and simple fact. Car insurance, however, can be like a leaky faucet, unnecessarily leaking money out of your household budget. When shopping for car insurance, you should avoid these costly mistakes.

1. Make sure you are adequately covered for uninsured and underinsured motorists. This is necessary because even if you are not at fault in the event of an incident, the offending driver could still leave you “holding the bag” if that driver has insufficient insurance to cover your damages.
2. Make sure your liability coverage is appropriate for the risk. For example, does it make sense to have $300,000 liability coverage on your home and only $50,000 liability coverage on your car? Chances are, you have a much greater likelihood of incurring a liability claim against you while driving your car than sitting in your house watching the NFL.
3. Make sure your deductible is appropriate for the risk. Why would you see a need for a low deductible if you have a long driving record of few or no claims? General rule is that your deductible should be inversely related to the number of claims you file. The fewer your claims, the higher your deductible. If this is not your situation, you are paying money to the insurance company needlessly.
4. Pay attention to the add-on goodies the insurance companies offer at a cost. For example, you do not need Roadside Assistance coverage if you are getting the same coverage through one of your credit cards.
5. Pay attention to the insurance payment options. The monthly payment option will always cost you more than the quarterly, the quarterly will cost you more than the semi-annual, and the annual will cost you more than the semi-annual. Schedule your payments within the parameters that will save you money without creating a hardship for your family.

Before you buy auto insurance, you owe it to yourself, and your budget, to do some comparison shopping. With the advent of the auto insurance online instant quote services, comparison shopping has never been easier. Simply plug in some figures, and with the click of your mouse, you will receive quotes from the top-rated insurance carriers. Shop smart for your auto insurance coverage by knowing the costly mistakes to avoid, and by shopping online.