Insurance is one of the main expenses related to car ownership. Monthly and yearly costs of a good insurance policy can be high. But getting protection is worth it… unless you make one of these three mistakes! Read carefully, to make sure the money you put in your insurance policy is well invested.
Mistake #1: Failing to Give Your Insurance Company All the Necessary Information
Your car insurance company must know everything about your car and about yourself. And by everything, we mean everything. Some details that can appear unimportant to you can have unfortunate consequences on your insurance.
So whether it is a new bike rack installed on the roof of your car, customized new seats, a more powerful engine, even new tires: do not fail to let your insurance company know about it all. Cause if your insurers are not aware of everything concerning your car or you as a driver, they can consider themselves ‘mislead’. Therefore, if you are to have an accident, they can deny your claim.
Apart from any addition or modification made to your car, you should inform your insurers of any trip you plan on doing, even the little ones. And it is also advised to inform them when someone else is driving your car on a regular basis: every car’s driver must be listed on your policy.
Mistake #2: Going For the Cheapest Policy
It might be tempting to go for the minimum coverage and, consequently, the less expensive policy. But if you are involved in an accident causing costly damages that your inexpensive policy won’t cover for, you’ll have to pay. Spending a few bucks more on your insurance policy can save you a lot on the long run.
To have an idea of the minimum coverage you should go for, consult with an insurance broker and give him/her all the information about yourself and your car: your driving habits, your car’s age, your past accidents if you had any, etc. Insurance brokers will expertly advice you on the coverage you should get. While aiming for an affordable policy is a good idea, “cheapest” should most definitely not be your number one criterion. Better be safe than sorry!
Mistake #3: Relying Only on Insurance
Avoid the mistake of considering your insurance policy as the ultimate protection. Unfortunately, it is not because you pay an insurance company monthly or yearly to protect you that they will do under any circumstances. Fact is: if they can avoid paying, they’ll gladly do it. Don’t give them the occasion! There are numerous cases in which in insurance company will deny claims: if your car is stolen while your doors and unlocked, if you have an accident while driving under the influence, or while an unlisted driver was behind the wheel, etc.
Ideally, you should behave as if you didn’t have an insurance policy, as paradoxical as it may seem. Drive carefully, for one. But also, consider investing in any kind of anti-theft device, never neglect to change your tires according to the season, always lock your doors, sign up for a twice-yearly inspection with your mechanic and keep records of it… Not only will doing all this lower your insurance rate, but also, all of these habits show good faith to your insurers, making it harder for them to deny any claim you may make.
About the author:
Alexandre Duval is a blogger for Auto Gallery Winnipeg that offers used cars for sale in Winnipeg. He is also currently completing his master’s degree in political science at the University of Quebec in Montreal.