Car insurance mistakes every driver should avoid now
Summary
The article warns that high car insurance premiums do not guarantee adequate coverage or good value. It advises drivers to compare quotes, check policy limits, choose a deductible they can afford, and tell insurers about major life changes that may affect their coverage or rates.Key Facts
- The article recommends comparing quotes from at least three insurers before renewal, using the same coverage limits and deductibles.
- Insurance prices can change, so a company that once offered the lowest rate may no longer be the cheapest option.
- Choosing a policy based only on its premium can leave a driver with inadequate coverage.
- State-minimum liability coverage may not pay all costs after a serious accident; drivers may owe costs above their policy limits.
- A higher deductible can lower premiums but requires the driver to pay more out of pocket for a covered claim.
- The article gives an example in which raising a deductible from $500 to $2,000 increases the driver's potential out-of-pocket payment by $1,500.
- Moving, getting married, adding a teenage driver, or changing commuting habits can affect coverage needs and premiums.
- The article advises drivers to notify their insurer about major life changes.
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