It is very important to get the right policy for your family and friends when you are buying a car insurance. The right policy must be selected so that you are fully protected if you get into a accident or if the car gets unfortunately stolen. But at the same time one must try to save as much money as possible at the time of purchasing a car insurance policy without compromising on the coverage. Many people are unfamiliar with the process of purchasing a car insurance policy and end up buying the wrong policy for themselves. Here are the 5 mistakes to avoid when buying an automobile insurance.
1) Failing to shop around for car insurance quotes
The auto policy must be reviewed every year. There are many drivers who simply renew their policy without asking any questions thereby failing to compare the policy with other insurers. Statistics say that only around 35% of the policyholders obtained an auto insurance quote in the last 1 year and the rest automatically renewed their policy. The majority make the cardinal mistake of not comparing the various insurance policies and thus missing out on the best deals. To make sure that you have adequate coverage at the best price one needs to compare at least 3 quotes when the policy is up for renewal.
2) Not getting enough coverage
It is very tempting to save money by signing up for minimum coverage but this can trouble you a lot if you get involved in a expensive accident where personal liability is involved. It is comfortable financially to get a low coverage but it always pays to be safe by getting the right coverage. One must have, at least, the minimum coverage that the broker recommends.
3) Ignoring reputation
When you are shopping around for the best car insurance rates, it does not make sense to ignore or sacrifice customer service. When you pay a low premium, the insurer will be tempted to give you very low damage estimate or worse, force you to pay more for the manufacturer replacement parts. Before a policy is purchased the details of the policy and the reputation of the insurance company must be checked thoroughly.
4) Not informing the insurance company of the major changes
The insurance company must be kept in the loop if there are significant changes to the vehicle or any other aspect. If you are adding another driver for the vehicle then the insurance company must be informed accordingly. You must also inform the company if the car is stole or involved in an accident. Similarly, the insurer must also be informed if the vehicle is customized or there are any major upgrades.
5) Not paying the premiums on time
If you are not paying the insurance premiums on time then there is a high risk of the insurance policy being cancelled. Usually a notice comes informing of the customer of the due premium amount but it is always advisable to pay all the premiums on time to avoid any trouble. If the policy gets cancelled then one will have a difficult time to find an insurance with another company as there is a record of cancelled policy.
People will always advise you to drive your own car and not trust anybody else. This is a good advice because a huge number of accidents are caused by persons who have been permitted to drive on behalf of the owner of the car. If you do not have a driving license then you can, for the time being, apply for UK provisional driving licence for your car. This application can be made online by using your Government Gateway ID. If you do not have an ID too then you will get an ID as part of your application.
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