Buying auto insurance is a crucial decision that can save you money and protect you financially in case of an accident. However, many people make mistakes that lead to higher premiums or inadequate coverage. Here are the most common mistakes to avoid when purchasing auto insurance:
1. Choosing the Cheapest Policy Without Comparing Coverage
❌ Mistake: Picking the lowest-priced policy without checking what’s included.
✅ Fix: Compare quotes from multiple insurers and ensure you’re getting adequate liability, collision, and comprehensive coverage.
2. Not Shopping Around for Better Rates
❌ Mistake: Sticking with the same insurer for years without checking competitors.
✅ Fix: Get quotes every 1-2 years—loyalty doesn’t always pay, and new discounts may be available.
3. Underestimating Liability Coverage
❌ Mistake: Opting for state-minimum liability limits to save money.
✅ Fix: Get higher liability limits (e.g., 100/300/100 instead of 25/50/25) to protect against expensive lawsuits.
4. Skipping Uninsured/Underinsured Motorist Coverage
❌ Mistake: Declining UM/UIM coverage to lower premiums.
✅ Fix: Add this coverage—it protects you if you’re hit by a driver with no or insufficient insurance.