5 Big Auto Insurance Mistakes to Avoid

Buying car insurance is one of those necessities of life if you choose to own and operate a motor vehicle. You want to drive? You need to be insured. That’s the law and if you fail to comply, you can get into a whole lot of trouble.

But while car insurance north carolina can already be expensive for some drivers, committing these five auto insurance mistakes will make those costs even higher and possibly leave you under-insured in the process. So, let’s review the five big auto insurance mistakes that you must avoid to get you driving safely without paying through the nose for the privilege.

1. Not Having Coverage

Right off the bat, this is a bad idea. Too many drivers think that as long as they drive carefully and obey all the rules of the road, they can get by without having insurance. But your car insurance covers more than just accidents, it can cover theft of the automobile and everything inside of it. What happens if your car is stolen? Then you’re really out of luck.

Not to mention the expenses that will come out of your pocket if you are indeed found liable for an automobile accident. Your insurance is there to cover the costs of other drivers and their property should you be the responsible party in a wreck. You think insurance premiums are pricey? Wait until you’re covering the medical costs and repair bills of someone you rear-end by mistake.

2. Having Poor Coverage

Being under-insured is almost as bad as not having any insurance. A policy gets you compliant with the law but if that coverage doesn’t do very much for you when the time comes to file a claim, you could be wasting a whole lot of money and spending even more on top of that.

Under-insured drivers will often discover that their coverage is of little use to them when they attempt to file a claim and discover their policy can’t or won’t cover it. Whether it’s a claim you are filing on your own behalf or a claim filed by another driver, if your policy won’t cover it, you’re stuck.

3. Failing to Pay in Full

You want to save some cash on your coverage, don’t pay your premiums in installments. The insurance companies would much rather you paid your premiums in full and they are willing to offer a discount on the cost if you agree to pay what you owe in full every six or twelve months.

The insurance companies are all about mitigating risk and if you are paying off your premiums from month to month that risk is elevated somewhat. What if you miss a payment for some reason? Paying in full avoids all of that.

4. Missing Out on Discounts

Simply put, the insurance companies offer a wide-range of discounts that customers can use to lower their premiums. Failing to take all that apply to you is a huge mistake.

5. Don’t Forget to Compare Rates

It can be a hassle to gather a whole bunch of rate quotes from all of the companies out there, but taking the time to do all of this work will only benefit your wallet. Not every company is the same and they might consider your particular situation different from their competitors. Taking the time to get quotes can help you save a whole lot of money.