If you own a car or have just bought a new one, you are probably aware of the several benefits of having proper car insurance. It is a big mistake to drive your vehicle without first having it insured. Hence, if you are looking for the right insurance for your car, chances are that you are wondering what to include and what not to; what is important and what isn’t. In this article, we’re going to talk about a few of the common mistakes that people make while getting car insurance, and how to avoid them.
Low Insurance Deductible
People often think that having a low insurance deductible saves them money. But this is not really true. The fact is, that if you have a low car insurance deductible, the rate of your car insurance goes up high! If you have a five hundred pound deductible, consider raising it to a thousand. Of course, you would have to pay that much more if your car is faced with an accident, but it would also save you up to forty per cent when it comes to the comprehensive portion of your insurance policy. Do the math and you’ll see you’re actually in the gaining side.
Different Insurers for Car and Home Renters
If you have both car insurance and a homeowners or home renters insurance, then it is best to have them with a single insurance provider. Having them under different providers cost you more. A study was carried out on this matter by the III (Insurance Information Institute) and it was found that people using the same insurance company save up to fifteen per cent on both insurance premium amounts.
If you use a single insurance company to cover all your insurance needs, chances are that they would offer you discounts. Insurance companies give you discounts on several fronts. It would be for your good driving record (no accidents, DUIs, etc.), a loyalty discount for being an old client, having your car fitted with proper safety and security features, and so on. If you are going back to the same insurance company you have dealt with in the past, make sure you ask them if you are eligible for any discounts. This would save you a lot of money.
Not paying Premium in one go
When it comes to paying insurance premiums, your best bet is to make one single lump sum payment for the entire insurance period. This is because if you pay by instalments, the company would charge you interest for the amount that remains to be paid for each. This instalment is usually compounded, and hence, you end up paying almost a hundred pounds a year extra simply on interests. If you have the money, do not go for instalments. Remember, compound interest is one of worst things for any consumer.
These are mistakes that are easy to avoid and would get your car perfectly insured while saving you a lot of money.