Avoid These Common Auto Insurance Blunders

Great rates are just one piece of the puzzle when it comes to auto insurance. Unfortunately, what you don’t know can cost you plenty when it comes time to renew or file a claim.

Following are some tips to ensure that you obtain the coverage that will keep your family safe and sound:

  1. Out of Sight, Out of Mind: Auto insurance may not be sexy, but it’s super-important to actually open those notices sent out by the insurance company. Take time to carefully review policy changes, due dates and other pertinent information at least once every six months, or make a habit of calling your agent to review coverage options annually.
  2. Update Upheaval: Life can be chaotic, so it’s not surprising that forgetting to update important information is one of the most common – and costliest – mistakes made. Adding or deleting drivers from the policy, updating contact information or simply asking for a new quote based upon changing conditions not only saves money but ensures that you have the right coverage in place for the entire family. Even a change in driving habits may qualify you for big discounts.
  3. Customized Confusion: Before investing in performance tires, a super-sized sound system or other exclusive customization, be sure to obtain a rate quote. Remember, the insurance policy is typically based on an average utility package, so be sure to supply your agent with all the specifics for upgrades and other amenities.
  4. Personal vs. Professional: For those who use a vehicle for both personal and business travel, it’s important to understand the coverage and limitations associated with a standard policy. When in doubt, ask your agent about obtaining additional riders or an addendum to supplement an existing policy.
  5. Timing Troubles: Without a doubt, one of the most common and easily preventable problems encountered by most auto insurance buyers is forgetting to pay the premiums by the due date. Schedule an automatic payment at least two weeks prior to the policy expiration date to ensure continuity of coverage.