To most first time car owners, finding an appropriate automobile insurance cover is a headache. The job entails going around insurance agencies in a bid to find an appropriate plan that suits your needs. Due to inexperience, many young drivers make insurance mistakes that later turn out to be costly. The following is a guide to some of the most common blunders.
1. Providing false information to the insurance company
A handful of drivers think it shrewd to misrepresent information on the insurance application documents. They provide faux information regarding the intended uses of the vehicle, the estimated distance to be travelled annually, the parking areas for the vehicle and their personal driving history. Most of the false information is provided in a bid to deceive the insurer into setting lower insurance premiums. However, insurance companies have advanced methods of finding out false information and this may lead to withdrawal of the policy.
2. Purchasing an insurance policy with minimal or insufficient limits
Many first time automobile insurance clients make the mistake of buying policies that provide bare minimums. A majority of them avoid comprehensive car insurance policies due to their perceived extravagance. In the end, they result to purchasing policies with high deductibles that seem to save money in the short run. Nevertheless, such policies tend to be expensive since they do not cover repair expenses.
3. Failing to pay insurance premiums on time
Do not wait until the insurance premiums are overdue to begin running around trying to find money to pay. In case the premiums are overdue and the vehicle is involved in an accident, the insurer is not obligated to compensate. To avoid this regular hustle, set up standing orders with your bank to directly pay the insurer.
4. Not receiving all discounts that are due to you from the insurer
Most insurance companies offer discounts and incentives for being accident free, installing anti-theft devices and low mileage usage. The conscious client must ensure that they carefully go through the list of discounts every year to find those that they qualify for. Furthermore, clients who insure both their houses and vehicles with the same insurer are eligible to receive insurance credits that save considerable amounts of money.
5. Failing to understand the particulars of the insurance policy
Not many drivers take the time to go over the policy document to read, let alone understand the fine print. Most people focus on how much for their premiums they are required to pay. It is smart to go over the insurance policy with an agent who can explain all the details of the document. Do not wait until you have been involved in a collision and the insurance adjuster explains your policy telling you why you do not qualify for compensation.
For information on Columbia IL auto insurance discounts that may apply to you, call Taake Insurance Agency today at 618-281-7656.