How to Avoid Common Auto Insurance Mistakes That Could Cost You Plenty 

Everyone has it, but no one understands it. Maybe that’s an exaggeration, but not by much. Like most motorists, you have car insurance, but you probably haven’t read your policy in years. 

What are you really getting with your coverage? What are you leaving behind? Read on to learn more about common auto insurance mistakes, how to avoid them, and how to get the most benefit for your premiums. 

The Top Auto Insurance Mistakes Drivers Make 

Yes, you’ll probably recognize your own practices in one or more of the following mistakes, but don’t sweat it. These are missteps nearly all policyholders make. 

Not Reviewing Your Policy Regularly 

Things change. Coverage needs change. Budgets change. For instance, if you purchased your first auto policy when you were in school and had no money, you might have bought liability-only coverage. It’s your cheapest option, and it was a smart decision at the time. 

But liability leaves you unprotected against damage to your own vehicle. It only covers others in the case of an accident for which you’re at fault. Or if there’s no fault, such as a wildlife collision or a house and garage fire. Or you slip and slide to major damage in an ice storm. 

If anything like that happens — tough luck. You have no coverage, so the thousands of dollars in repairs — or the replacement vehicle — comes out of your own pocket. 

That’s why you periodically review your policy. What’s changed? Where are you vulnerable now that you weren’t before? Call up your Acceptance Insurance agent if you’d like expert help with your policy review. 

Failing to Adjust Coverage After Life Changes 

It’s not just liability vs. full coverage. Should you upgrade your benefits or coverage limits when you get your first shiny new (and expensive) car? How about when you buy your home? Now there’s the possibility of bundling your auto and homeowners policies for rate discounts on both. 

What about when you get married? Perhaps you and your spouse can earn generous premium reductions by insuring both of your vehicles with one insurer. Even moving from one location to another can affect your auto insurance rates. 

Bottom line: When your life changes, consider the possible impact on your existing policy. It could be to your advantage to reevaluate, so check it out. 

Not Shopping Around for the Best Rates 

So you drove into the first car dealership you saw, and took the first vehicle they showed you — right? Didn’t even ask about the price or see how you could reduce it, did you? 

Yeah, right. 

The truth is, you shopped carefully. You did your online research. Compared prices. And asked a lot of questions. After all, you’re going to spend plenty for that ride and own it for years. 

So why do so many people choose the first policy offered? Is it because auto insurance isn’t nearly as sexy as your first new sports car? Well, sure, there’s that. But your coverage will be an ongoing cost — and set you back even farther if you neglect to get the benefits you’ll need literally down the road. 

Your agent should be your guiding light here. They’ve answered every question you could even think of asking, and they better be able to translate the buzzwords to common terms you understand. If they can’t do any of that, first go shopping for an agent. 

If you do business with an independent agent like the ones at Acceptance, they don’t just work for one carrier. They have contractual relationships with several brands, so they can go shopping on your behalf for the most appropriate plan at the best price. 

How to Get the Best Value Out of Your Auto Insurance 

Always try to avoid mistakes while shopping for, buying, and using your car policy. Dodge the most common car insurance errors, and you’ll save money and be better financially protected. But you can also take proactive measures such as the following. 

Take Advantage of Every Possible Discount 

This starts with your initial chat with your agent. After you’ve been given a quote, ask about which discounts you might be able to earn. 

For instance, let’s say you’re insuring your first teen driver. Yikes! That’s how much coverage for young drivers typically costs. But if your high school or college student earns good grades, you might pay less for your coverage. That’s because insurance underwriters predict that better students will be better (and safer) drivers. 

You can also earn a discount on your rate by being accident- and violation-free for an extended time, and passing an approved safe driver course. Your small investment of time and effort can earn you an impressive discount on your premiums. 

These are just a couple of examples of how to save on auto insurance coverage, but your agent should be able to earmark these and other ways of paying less through the discounts you’ve earned. 

Bundle Your Policies to Save Even More 

That, once again, is when you seek out auto insurance from the same provider of your homeowners, life, or other coverage. Any insurance agent would rather have you buy two (or more) policies than just one — and they’ll pay you for it in the form of rate discounts. 

At least that’s the question you should ask your existing insurer — do they also offer auto insurance, and what will it cost? 

Don’t Let Auto Insurance Mistakes Cost You — Get a Quote from Acceptance Insurance 

Want one more sensible car insurance tip? Chat with your nearby Acceptance auto insurance agent. Acceptance agents are independent brokers, so they can seek out and offer you the most affordable rates on the best coverage from various quality brands. 

It’s worth reaching out. Simply call us at (877) 405-7102, or get a quick online quote. You can also find an Acceptance Insurance office near you. You can chat face-to-face with a knowledgeable agent who’ll keep you from making all kinds of common auto insurance mistakes. 

FAQs 

Learn more about how to avoid auto insurance mistakes. Read on for some of the leading car insurance coverage tips in this regard. 

How Often Should I Review My Auto Insurance Policy? 

How about annually? Give your policy a quick read when it comes up for renewal. That way, you’ll be able to react if conditions have changed so that you can upgrade or otherwise change your coverage. Once you get in the habit of making this part and parcel of your renewal, you’ll be less likely to miss a revision that should be made. 

What Happens if I Don’t Have Enough Coverage on My Car? 

You could come up short on reimbursement when you find yourself needing to file a claim. Have a frank talk with your car insurance agent to prevent this from happening. 

Can I Lower My Premiums Without Sacrificing Coverage? 

There are several strategies to reduce costs without sacrificing quality. For instance, you could bundle your auto insurance policy. That’s a matter of doing business with the same insurer that handles another line of coverage, such as your homeowners or life insurance. Putting two or more products together often results in discounts on both policies. There are also discounts for good students and other ways of whittling the premium down — but you have to ask your agent. 

What’s the Difference Between Liability and Full Coverage Auto Insurance? 

Liability handles claims for other parties when you’re in a car accident and at-fault — but it won’t pay for property damage to your own vehicle. Liability will also go toward your legal costs if you’re sued, but if your own car is totaled or heavily damaged, that repair or replacement comes out of your own pocket. With full coverage, you can file a claim for damage to your own car under such a situation. Liability coverage costs less, but you get much less in benefits than you will with full coverage.