Mistakes to Avoid when Buying Car Insurance

Skipping a few questions when filling in the car insurance application form doesn’t seem like a big deal when applying for your insurance but, when you get involved in a car accident or when something happens to your car, you realize that the ignorant mistake you made in your application is likely to cost you. Errors in your application may cause revocation of your policy or denial of your claim. To avoid any of these from happening, you should avoid the following mistakes:

Buying Car Insurance

Guessing the mileage driven

Whether you need to fill a form for mileage reimbursement form or not, you must always report the exact mileage driven. In case of an accident and you file a claim, the repair estimate may reveal a mileage discrepancy. Also, standard checks done during smog emission testing as well as car servicing may reveal the true mileage covered by the car.

Failure to report all the drivers of the car

When applying for car insurance, you are required to list all the people who will be driving the car. Teenagers and persons with traffic infractions aren’t listed in the driver’s list. If at the time of the accident, a teenager or a person with a traffic infraction was driving the car, your policy may get canceled, or you may pay high premiums because the driver is a high-risk driver.

Not listing the car’s true parking location

If you park in a garage, your car is considered safer than the one parked on the street. So, if you lie about the parking location during the application process, you may end up paying lower premiums but, in case of an accident, you may lose your policy or your premiums could go up.

Failure to update your information

If you change service providers, change commute routes, move to a different town, get a new person to drive the car or get involved in a minor accident and fail to mention that detail to the old company, you may pay more for your insurance. You could also lose your discounts.

Failure to mention business travel

In case you fail to mention to your insurer the fact that you are using your car for business purposes, you will be in big trouble in case of an accident. Your car insurance company expects you to divulge this information because it means your car is exposed to a bigger risk and you should be paying higher premiums.

Not being prepared

Preparedness is important when shopping for car insurance. Before you settle on one insurer, you should look at the market prices thoroughly. Failure to be thorough will leave you with an expensive policy and too high premiums. You may also get the wrong insurance cover for your state.

With due diligence, you will know how much car insurance costs, the type of insurance cover recommended by your state and the cost of monthly premiums.

Research lets you work with an insurance company that offers fair insurance rates and excellent services.

About the author

Christine J Yorke

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