10 Mistakes To Avoid When Buying Car Insurance

Hands protecting icon of car over wooden table. Top view of hands showing gesture of protecting car. Car insurance and automotive business concept.

When it comes to buying car insurance, it can be confusing. Many people don’t know exactly what they need and how much they should pay. The best way to avoid overpaying for your car insurance is to set a budget that includes the insurance you want, and then shop around for a plan with those features. Here are 10 mistakes you want to avoid when buying car insurance:

This Is What You’re Buying

When you’re shopping for car insurance, it helps to know what you’re buying.

For example, if you want to keep your car covered, but would prefer not to have a collision or comprehensive policy, then you’ll need a liability-only policy.

10 Mistakes To Avoid When Buying Car Insurance

1. Buying Car Insurance With a Gaps

Many people don’t know what they need when it comes to car insurance. It is important to check your car insurance coverage first before you go shopping for a plan with gaps. In most states, you are required to have liability and uninsured motorist coverage, which will protect you from damage to your vehicle as well as injuries to you and others in the event of an accident.

2. Not Knowing Your Credit Score

Your credit score affects the cost of your car insurance premium significantly–if you have poor credit, it is possible that some insurers won’t even offer coverage at all. So make sure that you are aware of this when shopping around for quotes.

3. Forgetting To Include Liens or Wrecks

If your car has been through a wreck or had liens previously, this could affect the rate quote that you receive from different providers. You need to be upfront about any accidents or liens so that they can be taken into account during the search process.

4. Miscalculating Your Mileage

If your miles are low due to infrequent driving or if you drive less than 10,000 miles per year, then it may not be worth paying for collision coverage–even though it is mandatory in most states–unless the premium is going towards something else like rental reimbursement or personal belongings protection (PIP). This could save cash on monthly payments and also lower your deductible if an

The Importance of Having A Budget

Having a budget is crucial when buying car insurance. The first thing you should do is establish the amount of coverage you want, and then set your budget.

The best way to start this process is by doing some research online to find out what types of policies are available and how much they cost in your area. Once you find some potential plans, compare their features and prices to decide which one will work best for you. Now that you have an idea of what to expect, it’s time to start shopping around.

Shopping Around For Plans

One of the most common mistakes people make when buying car insurance is not shopping around for plans. By simply taking your car insurance in to your current provider and asking them what they have available, you may be missing out on some great deals. Before agreeing to any plan, ask for details about what’s covered and how much it costs. The more information you have, the better.

Comparison Shopping Websites

The first mistake is not comparison shopping. Comparison shopping websites, like Policygenius, make it easy for you to compare car insurance quotes side by side. You can see the price and coverage that each company offers and then choose the plan that best suits your needs. For example, you might have insurance through State Farm and find out that GEICO has a lower premium for similar coverage. If you are happy with the terms of your current plan, but want to lower your monthly premium, use a comparison-shopping website to find a more affordable option.

The Phone Call Approach

The first mistake people make when buying car insurance is that they call the company and give them personal information. When you call, they are able to start building a profile of you and your habits. They also might ask for your driver’s license number, which would allow them to access your driving record.


1. This Is What You’re Buying

2. 10 Mistakes To Avoid When Buying Car Insurance

3. The Importance of Having A Budget

4. Shopping Around For Plans

5. Comparison Shopping Websites

6. The Phone Call Approach

7. Understanding Your Levels of Coverage

8. Understanding Your Deductible

9. Understanding Your Policy Limits

10. Understanding Your Policy Types

11. Understanding Your Deductible Types

12. Understanding Your Coverage Types

13. Understanding Your Exclusions

14. Understanding What Will Not Be Covered By Your Policy

15. Choosing A Company That Is Right For You

16. Shopping Around For Companies

17. Choosing A Company That Has The Right Policy For You

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1 Comment

  1. Nice post. I was checking continuously this blog and I am impressed! Very helpful info specially the last part 🙂 I care for such info a lot. I was seeking this certain information for a very long time. Thank you and best of luck.

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