Four Common Mistakes When Buying Auto Insurance. The simple act of buying an auto policy has real-life consequences. Above all, when you need your coverage after an accident or when your vehicle suffers damage due to nature. Many homeowners are unaware of how to get the right policy and buy one that is too basic or unnecessarily expensive.
To prevent this from happening, here we explain the most common mistakes when buying car insurance.
It is key to know that each state requires a minimum of coverage. In the case of Florida, it is mandatory to have coverage from Bodily Injury Liability, which covers third parties for injuries and death in the event of an accident. Property Damage Liability: This covers the damage to the property of third parties that you may cause. Finally, Personal Injury Protection, PIP: which reimburses the medical expenses that you and your companions may have after an accident.
- Buy the minimum coverage needed in the state.
Many homeowners believe that purchasing the minimum coverage required by law is the right thing to do. But it is not like that, one has to imagine that it is possible to have an accident with a high-end car. In that case, if the coverage you have purchased is insufficient to protect you financially, it is not adequate. Ask your insurance agent for recommendations and discuss the best option with them.
- Buy more coverage than necessary.
Excess coverage is another typical mistake when buying auto insurance. This is usually commented by those owners of second-hand cars or whose cars look new, but are many years old and their market value has diminished a lot. Having very high Collision protection, which is the one that reimburses the damages suffered by the car in an accident, is not justified. Taking into account that the insurer will only replace the market value of the car, less the deductible. The correct thing to do is to adapt the Collision and Comprehensive coverage (the one that covers you for damages caused by fire, theft, vandalism, or hail) at the age of the car, regardless of its sentimental value.
- Stay with the same insurer for years
The auto insurance market is very competitive. It is possible to reduce the costs of protection by several hundred dollars by looking at other insurers. To do this, it is advisable to talk to your Univista Insurance agent and ask them to get you cheaper insurance with the same benefits, or more, than your current coverage.
- Failure to check the reputation of the insurance company
There are many insurance companies with a very bad reputation on the market. Before purchasing your policy, talk to your trusted agent about the company’s reputation, how it responds to customer complaints, and its track record. You can also search for references on the internet. Four Common Mistakes When Buying Auto Insurance.