Not Purchasing Underinsured or Uninsured Motorist Coverage
With so many people driving on roads without any car insurance; or they have only a small, inadequate policy--it is important to protect you and your family by making up the difference for their lack of responsibility. The way you can do that is by purchasing underinsured and uninsured motorist coverage. The cost is very small compared to other coverages (about 7 to 10 percent of your total policy cost) and it provides a very necessary piece of security for when you are in a car accident. You don't have to worry if the driver is driving without car insurance, or his insurance policy is too small to cover the damages you incur.
Not Carrying Enough Underinsured or Uninsured Motorist Coverage
You should purchase as much underinsured or uninsured motorist coverage as you can. You can increase these coverages up to the limit of your third-party bodily injury coverage (which pays for someone else when you are at fault). Why would you buy more insurance for someone than you would buy for yourself?
Failing to Consider Car Insurance When Buying a Car
Too many people forget about the cost of car insurance when shopping for a new vehicle. They spend too much time focused on the sticker price and not much time considering the annual cost of the car. Contact your insurance agent before buying the car and get a quote.
Not Saving Money by Insuring Your Car and Home Separately
Most insurance companies will offer a discount, as much as ten percent, if you insure your home and car together on one policy.
Buying a Policy with Deductibles Lower Than You Can Afford
The most direct way of saving money on your car insurance policy is to increase your deductible to the highest amount you can afford if you are involved in a car accident. If you double your premium, you can save a considerable discount on your policy. Consider, though, the cost of the increased premium versus the policy savings.
Failing to Reevaluate Car Insurance Coverage
As your car gets older, and your circumstances change, your insurance coverage needs may change. It is a mistake to not reevaluate and price your car insurance policy periodically.