We all know it’s essential to have car insurance, no matter what age you are. However, you could be making some common mistakes when choosing your insurer. Before you sign up for car insurance, check you haven’t made these errors and enjoy a cheaper deal and a safer drive.
Mistake: Not fully understanding the coverage you’ve purchased
How to avoid it: You should never make assumptions about the coverage you have or don’t have. The words “full coverage” are thrown around quite a lot but it doesn’t necessarily mean you’re as covered as you think you are – and you might end up paying more out of your pocket if you need to make a claim for simply misunderstanding your policy.
Be sure to do your research before buying your specific insurance policy and don’t be afraid to ask questions. It is important you feel comfortable with your policy and the level of protection you are getting.
Mistake: Not considering the different types of insurance
How to avoid it: A very common mistake made by many is not considering the different types of insurance you could get, and just going for the first option. Take some time to look over what is included in each and what would benefit you and your driving style best. The options available include:
- Third party – This offers you the legal minimum level of car insurance cover and is the most basic cover you can get.
- Third party fire and theft – This offers you cover for replacing your car if it’s stolen or fire damaged. Many people opt for this, assuming it’s always a cheaper option than fully comprehensive insurance. However, this isn’t always the case – and can leave you with a big repair bill if you have an accident that wasn’t your fault as your insurer won’t cover the cost of repairing your car.
- Fully comprehensive – Also known as fully comp, this is the highest level of protection you can get for your car. With this, you can claim from your insurers for accidents, even if they’re deemed your fault. Many people believe this must be more expensive than other insurance policies but this is not always the case and can offer better cover.
There is also telematics insurance to consider. This involves having a black box or monitoring device installed in your car, but can lower the cost of your insurance if you drive well. You can choose between third party, fire and theft and comprehensive with this insurance option to find cover that suits you.
Mistake: Accepting the renewal quote
How to avoid it: Some insurers may try to raise your price when your renewal period comes up and hope that you simply let your policy run over. However, when you receive your renewal letter, it’s important you jump on the phone and ask your insurer to beat their own quote. They usually will and, if they don’t, you can look around for a cheaper option.
Mistake: Being shy about asking for discount
How to avoid it: Car insurance doesn’t mean you have to sacrifice everything to pay the bill – don’t be afraid to ask directly for discounts. If you are a good driver and haven’t been in an accident, your insurance company might give you a discount. Also, if you have been with the same car insurer for a long time, you could receive a loyalty discount. Although a lot of insurance companies are strict with their policies, there is no harm in trying – a simple phone call could save you some money.
Mistake: Only going for the cheapest option
How to avoid it: It is in our nature to go for the cheapest option for most things in life, but when it comes to buying your car insurance, it should never be one of your primary objectives. The cheapest insurance policy is not necessarily the best choice for you as it may not cover all your needs. You need a policy that will cover you against heavy damages or losses towards your car – even if it means paying more.
Mistake: Setting your voluntary excess too low
How to avoid it: Most car insurance policies feature a voluntary excess amount that you would need to pay on top of your premium, should you need to make a claim. The premium is what you pay on a monthly basis, so it may be worth setting your voluntary excess a little higher, as this way your premium is a lower amount – which may save you some money on your insurance.
To fully learn the scope of your car insurance policy, make sure you are doing all the correct research, you trust the company and can get the perfect plan for your needs.