3 Mistakes To Avoid When Getting An Auto Insurance Policy

24 August 2022
 Categories: Insurance, Blog


Your auto insurance policy will compensate you if your car is damaged in a road accident or due to other factors like fire, riots, and terrorism. The insurance company will also pay for third-party liabilities like legal fees and medical bills if you injure someone or destroy property while driving. Another benefit you will enjoy from purchasing insurance is access to the best garages, as insurance providers have a vast network of top-tier garages.

Moreover, a good insurance company will have adequate customer support and an efficient purchasing process. This article will discuss car insurance mistakes you should avoid.

Not Doing Research 

Insurance purchasing is like shopping. You must go to different companies and ask about their policies and terms. Then, make comparisons before picking the ideal insurer suitable for you. You should also go to their online pages and read reviews made by other people. 

This precaution will give you a clear picture of the company's ethics and whether you can trust them or not. Moreover, you can talk to an independent agent. The agents are like a one-stop shop as they deal with products from different companies and aren't tied to a specific insurer. This attribute makes them trustworthy as they will help you pick the best policy that suits you instead of trying to sell you a particular product.

Choosing a Policy Because It's Cheaper

While choosing a more affordable policy is a logical decision, sometimes it may not be the best option. You should consider the policies' coverage to determine if it's worth it. A cheaper policy may have fewer covers, and the insurance company may be paying a lower amount in case of a complete loss (insured declared value). For example, if your car gets stolen, the insurer will have to reimburse you the maximum sum they had declared on the vehicle.

Usually, the insured declared value is calculated by subtracting the vehicle's depreciation from its original selling price. Other costs, such as insurance and registration, aren't included in the IDV.


Lying on your insurance application is one of the worst mistakes. For instance, you might get exposed if you have ever caused an accident that injured someone or destroyed property and lied about it. Insurers will do a thorough background check, and they can access your data and driving records. The professionals might decide to turn down your application.

Even worse, the company might reject your compensation claim if you cause an accident and they discover you lied about something. Your policy might be canceled, making other insurers refuse to work with you if they see your bad history.

Speak to an agent to learn more about auto insurance