Sunday, February 7, 2010

Mistakes to avoid while buying auto insurance

Are you looking for a suitable auto insurance policy for your teenager? Many of you commit certain mistakes while buying car insurance for your teenager. Read on to know about some common teen auto insurance mistakes to avoid while purchasing a car insurance policy for your teenage daughter or son. It will help you to buy an affordable car insurance policy without compromising on the required coverage.

5 Common teen auto insurance mistakes to avoid

Here are 5 common mistakes that people often commit while purchasing auto insurance for their teenager. Go through the following lines to know how you can avoid making these costly mistakes.

1. Not shopping around for rates

Most of the times, people don’t shop around for rates while purchasing an insurance policy. It is advisable that you shop around for rates and compare them. However, do not go for the lowest quote. You should always weigh the cost of the policy against the coverage offered.

2. Not purchasing adequate coverage

Often people go for less than adequate coverage while buying a car insurance policy.

It is not at all advisable to do so especially when it comes to purchasing liability insurance coverage. As the name suggests, liability coverage protects you against liability claims when your car is responsible for someone’s bodily injury or property damage.

3. Lowering the deductible amount

One of the most common teen auto insurance mistakes to avoid is to lower the deductible amount. Many of you think that the insurance company will pay more for the claim if there’s an accident. However, you can save on premium if you raise the deductible amount.

4. Assuming certain coverage

Do not assume that everything is covered under your auto insurance policy. Instead, get everything in writing and read them carefully before you purchase a policy. It will help you to settle a claim fast, if required.

5. Not informing agent about important changes

Often you forget informing your insurance agent about certain changes that may affect the premium cost of the auto insurance policy. You are eligible to get discounts when you upgrade your car safety features or your teenager takes a defensive driving course.

A knowledge on the above common teen auto insurance mistakes to avoid will help you to save the premium cost to a significant amount without compromising on the coverage.

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