Choosing Better Insurance Coverage

Few things are more important than having the right insurance coverage. About ten years ago, I was involved in a near-fatal crash where I experienced traumatic physical and emotional injuries. It was really challenging for me to endure the hospital stay and subsequent physical rehabilitation, but with the help of my medical team and my insurance company, I was able to overcome the challenge and completely recover. This blog is all about the importance of choosing the right insurance plan so that you can get on with your life and enjoy those precious years with your family and your friends.

4 Mistakes Vehicle Owners Make When Applying For Automobile Coverage

Insurance Blog

Although a vehicle coverage policy is vital and mandatory, it is an intricate process that needs attention to detail. And because this coverage offers you financial security in the event of theft, vandalism, or an accident, it is crucial to follow the right procedure. Failure to do so will result in costly mistakes and grave consequences when filing a claim. In that regard, you should consult an insurance expert to guide you in applying for coverage. That way, you'll evade the mistakes highlighted below.

Setting Your Deductible Too High 

A higher deductible on your insurance policy will reduce your premium rates, especially if you want to save money. However, in the event of an accident and your vehicle sustains damage, you will need to pay the deductible in cash. If the repair costs exceed the cash at hand, you could experience financial hitches in restoring your vehicle. Therefore, paying a lower deductible will increase your monthly premium and benefit you greatly if you are a high-risk driver.

Switching Insurance Companies Annually

Most car owners get quotes from various insurers and compare them yearly, shifting to one with the best price. Although it may seem like a cost-saving initiative, you will eventually pay higher premiums. This is because insurance companies reward customer loyalty to long-term clients by offering favorable rates. On the other hand, if your new insurer reviews your application and notices your policy period at every insurance company is less than a year, they will offer unfavorable premiums.

Giving Inaccurate Information

The insurance company could nullify your coverage if you provide false or impartial information. This includes failing to disclose all the drivers of your vehicle, guessing about the car's mileage, providing a false driving history, and failing to mention your vehicle's use. As a result, the insurers may charge you higher rates, deny your claim in case of an accident, or cancel your coverage prematurely. Since you do not want to handle the entire burden of repair expenses when your vehicle sustains damage, it is prudent to give truthful information in your application.

Setting Low Coverage Limits

The coverage limit determines the compensation an underwriter will pay for a particular claim. Since an insurance policy encompasses various coverages, you may have several limits within a single policy as every coverage has a limit. However, if your coverage limit is too low, your insurer may not adequately compensate for the damages. That means you'll pay more cash if the damage exceeds your auto insurance.

As much as acquiring auto insurance is crucial, avoiding errors in applying for one is also important. Thus, you should hire an insurance agent to help you buy the right vehicle coverage policy to avoid its cancellation later. 

For more information about auto insurance, contact a local company. 


1 September 2022