If you’re shopping for car insurance, it’s essential to find the right policies and providers. But it’s equally important to avoid critical mistakes that policy seekers frequently make. Learning about these mistakes can help you get the best possible circumstances for your insurance claim.
If you’re keen about due diligence, visit moneyexpert.com. They review almost 100 insurance providers to get you to the best possible premiums.
Fail to insure your expensive car
Not insuring your luxury SUV because you’re avoiding high premiums may seem like a good idea. You may opt instead to drive carefully wherever you go. The problem with this approach is that some collisions don’t care how careful you drive.
Premiums are based on several factors, including but not limited to the model of your vehicle. Plus, whatever your car’s repair costs are will be much more than any premiums you could have paid. More still, your expensive car may have better claim rates for accidents than a more affordable model. And if that’s the case, you’ll pay less in premiums than you initially thought.
You can also drive down your insurance bill by raising your deductibles. If you can afford to cover some out of pocket costs, increasing your deductibles could lower your premiums by up to 30%
Fall for staged accident scams
Drivers use staged accident scams to get a claim from insurance companies. Most people are required to get insurance sky drivers set up an accident involving your vehicle and try to get compensation. They may go further by adding additional damage to the car after the accident.
You can protect yourself from these by firstly ensuring that you have the right policies in place. That way, you’ll carry none of the cost of the accident. Next, practise defensive driving and keep your eyes peeled at all times. You should also only use repair shops recommended by your insurance.
Recording accidents properly is a great habit to get into. Take pictures, write out details of the accident, and fill out accident reports. These will be your proof against additional damage scams. Even though insurance scams target the insurance company, they can get you in a tight spot. It’s best to avoid them as best you can.
Get the wrong policy
Some buyers try to save a buck by buying a cheaper insurance policy. These policies have lower monthly premiums, and they mostly seem like a good idea. The problem is, car insurance policies are decided by many factors, including where you live, your credit score, your age, and marital status.
If the policy you’re looking to buy is significantly lesser than others, something gives. Sometimes, people purchase comprehensive insurance instead of collision and vice versa. Comprehensive covers damage by everything except collision with objects and another vehicle. Collision insurance covers collision with another vehicle or object like a tree or guardrail.
Don’t get comprehensive insurance hoping it covers collisions. Once you understand how premiums are priced, you’ll see how difficult it is to cut corners on payment without losing some privileges.
Roll over when your claim is denied
If your insurance claim is denied, the first step is to find out what it was denied and what you can do about it. If the accident exhausted your policy claim, the company would not payout. Likewise, if you’re not covered for the claim you’re making, or you violated the law when the accident happened, the insurance provider has the right to deny your claim.
But what about when you have legitimate claims? You can prevent this by following the proper procedure immediately after the accident. Report it to your insurer, and seek medical attention if you’re injured. A doctor’s visit will also corroborate your claim for additional damages due to injury later. Next, file a police report, especially if the accident affects your ability to drive.
Next, you’ll need a lot of patience. Once you have that, gather all the necessary information, contact the department of insurance and possibly hire an attorney. The department of insurance will be able to resolve your dispute. But depending on the circumstances surrounding the accident, you may need an attorney’s extra pair of hands.
Shop on price alone
Most people already understand the need to shop around for policies before deciding on a provider. But they only do surface checks. They analyze the premium rates and how much they can save by switching providers. Unfortunately, this shallow due-diligence can land you in a lot of hot water.
For example, you may think you’re buying your preferred policy but actually get a modified, scaled-down version. It may not be immediately evident, and the company may not tell you. When you get into an accident and attempt to claim your damages, it’ll be too late.
Conversely, expensive coverages don’t always offer the best options for you. The coverage may be costly because it includes breakdown insurance or roadside assistance, for example. You may not need this if your car is under warranty or if you belong to an automobile club. It’s essential to look deeper than the policy prices for the best possible deals.
Accept the first quote
So, you’ve shopped hard for a policy that works for you. It matches your price expectation and offers sufficient cover. But what happens when you get in a collision and the provider lowballs you? By default, claims adjusters try to pay the least possible amount for damages because they lose money every time they pay up.
Getting fair compensation for the damage can be a challenge, but it’ll be worth it. When trying to claim, never accept the first quote. The first step is to determine the car’s real value. The claim adjuster pays based on what it costs to fix the car but knowing the figures can give you an edge.
When going into the negotiation, determine the minimum amount you’ll accept for the damages based on the following factors:
- Cost of treatment suffered in the accident
- Whether the accident may cause you to stop work and lose income
- The cost to fix or replace your car
- Cost of repairing damaged properties in the accident
You can be sure that the claim adjuster didn’t account for every one of these variables. And that’s where you have the upper hand.