Dangerous Mistakes With Car Insurance

By Meha Ahmad, InsuranceAgents.com Staff Writer 

With your own money on the line, mistakes on your auto insurance policy are the last thing you want. Too many people don’t realize the mistakes they’re making on their auto insurance until it is too late. This can cost them thousands of dollars, hundreds of thousands in really bad cases. And no, your auto insurance will not cover it.  In order to see if your getting the most optimal coverage, talk to a car insurance agent or compare policies & rates using our quick online form.

As a driver with auto insurance, these are some mistakes you want to be sure to steer clear from:  

1. Not buying Uninsured/Underinsured coverage. Accidents happen. But not getting this coverage can prove disastrous if you ever got into an accident with a driver who either didn’t have auto insurance or was underinsured. Because that means you and your auto insurance carrier will suffer for the other driver’s foolishness. Furthermore, this coverage is relatively cheap in most cases. And it offers a variety of protection including paying for your medical bills, lost income as well as pain and suffering.



2. Not buying enough uninsured/underinsured coverage. Even if auto insurance is mandatory in your state, don’t be fooled. You’d be surprised at the amount of drivers on the road who lack any auto insurance or who are seriously underinsured. Even if you have some uninsured/underinsured coverage on your auto insurance policy, what if it’s not enough? Consult your agent. Some people have only $30,000 in liability or uninsured/underinsured coverage, and that simply is not enough. If you were to land in the hospital, medical bills alone can cost much more than that. And you’ll be footing the bill.
3. Inconsistent liability coverage. Do NOT put different liability coverage limits on your auto insurance than on your homeowners/renters/condo insurance. Carrying $200,000 liability coverage on your homeowners insurance, for example, and having only $50,000 liability coverage on your auto insurance just doesn’t make any sense. You would be compensated less for the same accident if it happened in your car rather than your home. Reevaluate your liability coverage limit on your auto insurance policy (to match your homeowners liability).
   Same goes for your renters insurance policy as well.

Always remember, insurance agents are available to answer your questions, so if you need help, use our free agent locator, find an agent near you, and get your questions answered.

Published: Saturday 4th July 2009