Purchasing auto insurance can be a nuanced and confusing activity because of the number of options available and the many factors you must consider. Because of this, buyers often make some mistakes. The information below should help you avoid these pitfalls and design a policy that entirely meets your needs.
Mistakes to Avoid When Buying Auto Insurance
1. Focusing on Price
Too many people simply purchase the lowest priced policy without considering other factors. Although cost should be a consideration, it is not the only important one. A better strategy is to look for the best value. Another, more expensive policy may actually offer more bang for your buck. Be sure to consider the deductible amount—the amount you must contribute to a claim before the insurer starts to contribute—as well as the policy limits. You may be able to significantly lower the deductible and raise your payout amount for the same or a slightly higher price.
2. Not Understanding the Coverage
Insurance companies add some exclusions to their policies. These are perils that they will not cover or damages for which they will not pay out on a claim. For instance, they don't honor the cost of injuries or damages the insured inflicted intentionally. They won't cover claims on a personal auto insurance policy if the losses occurred while the driver was using the vehicle for business purposes. You should understand these exclusions, as well as your deductibles and policy limits, so you know what to expect should you ever have to file a claim.
3. Failure to Shop Around
Many buyers simply accept the first price and policy quoted to them, as if all insurance companies are equal. Prices, limits, and deductibles vary considerably from one carrier to the next, and the first quote you get may not be the best value. Request quotes from at least three insurance companies so you have a better idea of what is available and how much coverage costs.
Stringer Insurance Agency, with locations in Dahlonega and Gainesville, GA. They have been serving individuals and businesses in and around Lumpkin County since 1931, so they have decades of experience satisfying clients. Visit their website to view location details or call (706) 864-3515 to request an auto insurance quote.
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