Car insurance is a necessity when owning a vehicle, no matter the usage, the model or your own needs you must be insured. The number of uninsured drivers on the road is on the rise and more people are taking the risk, taking the fine and continuing to drive without the necessary paperwork. Insurance is a cost that no one relishes in having to pay but not only is it a legal requirement, but it serves, as peace of mind should anything happen to your car.
One of the biggest reasons why so many people neglect to take out insurance is the cost. Premiums can be high and an expense that many cannot meet which is why more people are looking for budget auto insurance to help them afford the luxury of a car and all of the costs that are associated with it.
When taking out an insurance policy you are entering a contract and you need to make sure you are happy with the information and the level of coverage. Mistakes are common when taking out any form of insurance policy and no more so when looking at car insurance.
Not Looking for Competitive Prices
It is easy for us all to accept the first price we are offered with the first insurer we come across. Make sure you shop around and compare the quotes and level of coverage you are offered to make sure it is the best policy for you.
Not Declaring Relevant Information
If the price is too high or too low this could be a result of a lack of information. You need to ensure you are filling in the application form or supplying everything that an insurer needs to know or it could lead your policy to be void if the insurer determines your mistake.
Not Giving the Correct Information
Hiding something, falsifying details or not declaring something, which may affect your policy, is illegal. We all want the cheapest premium but the repercussions are great if the insurer finds out the truth. You could be forced to pay additional fines, fees or may even have to cover accident and repair costs you if the policy is voided.
Not getting Quotes Before you Buy the Vehicle
There are those that are so keen to own a new vehicle they simply purchase the car and worry about the costs of insurance afterwards. The salesman can tell you the fixed price of road tax or the cost of petrol but not the insurance cost as it varies between each person.
Not Being Truthful About Mileage
There is a reason why insurance companies ask for an estimated number of miles travelled a year and quoting too low will affect the claim. Low mileage means a cheaper premium but surpassing the stated mileage can allow the insurer to cite misinformation and significantly increase the policy cost.
Not Updating Necessary Information Throughout the Year
Penalty points, driving convictions and car modifications have a direct impact on the cost of insurance and they must be declared to the insurance company at the earliest opportunity. It will increase the premium cost but will ensure you are not met with additional costs at a later date if the insurer believes you have not declared the conviction or offence. This also applies to any accidents you may have, in the past or in someone else’s vehicle.
Not Being Realistic About the Excess
Having a high excess on your policy will reduce the yearly or monthly payments but it needs to be something that is affordable should you make a claim on your policy. It is often easier to have a higher premium paid monthly then having to pay large excess in one bulk.
Not Being Clear on Coverage
Make sure you understand all the terms of your policy so you are aware of what is and is not covered, the requirements you must fulfil and the areas that will affect your policy.