Car insurance is mandatory in most states, although not many people fully appreciate its purpose until they need to file a claim. Unfortunately, certain mistakes can cost you because any errors made when buying the policy are likely irreversible by the time you're filing a claim. Below are three mistakes to steer clear of, whether you are renewing your insurance or it's your first time purchasing:
Reserving Information About Your Driving History
Every potential insurer asks about your driving record and uses this information to determine how likely you are to file a claim. With this in mind, some may lie to the insurance companies so their past won't affect their premiums. However, giving false information is a costly mistake that can land you in trouble when you need compensation.
Since insurance companies have to authenticate the information you provide, they may hike your premium rates or even invalidate your cover if they discover that you are lying. On the other hand, providing accurate information enables you to get vehicle insurance that cannot be contested when you need to file a claim.
Failing to Update Your Policy
There may be changes in your life after you've bought your policy, and some of these changes might impact your auto insurance rates. For example, getting married will likely lower your premiums, while getting divorced might raise them. Additionally, if you add another driver, say a teen with a recently acquired driving license, your rates will rise.
Regardless of the change, your insurer expects you to keep updating your policy accordingly. Suppose you relocate to a high-risk area and your car gets stolen. If you have not updated your policy, your insurer may use that as grounds to deny you compensation.
Not Comparing Companies
Contrary to popular belief, all insurance firms do not operate similarly. A reputable company is unlikely to play games with you because they have an image to protect. Comparing several companies helps you contrast rates, overall packages, and how they handle claims and clients.
While mistakes may happen occasionally, the above guide should enable you to avoid auto insurance mistakes that could otherwise cost you. Ensure that you consult a professional to avoid signing a document whose content you don't completely understand. An auto insurance agent will help you with the entire process of getting a reliable policy.
If you have any questions about auto insurance policies, contact a car insurance company in your area.