Are you in the process of looking for and buying car insurance? Dealing with insurance is serious business and we totally understand that you want to avoid the common insurance mistakes that many car owners make!
From not comparing prices before you buy to effortlessly renewing your policy repeatedly with the same insurer, here's a list of the 12 most common mistakes policyholders make when it comes to car insurance!
Mistake #1: Ignoring the market and not considering your options
If you are in the process of getting car insurance for your vehicle, the most critical mistake you can make is to skip shopping around and comparing the available options. Approach shopping for car insurance the same way you would look to buy a new vehicle.
- You wouldn't buy the first car you came across, would you? No, of course not.
- So what would we do if we wanted to buy a new car?
We would visit a dealership, or even several, test drive various cars, do our own research on the internet, talk to an expert in the field, read reviews from other owners about the vehicle, and then make our decision.
This is exactly how we should approach the purchase of car insurance. No, not all insurance companies offer the same insurance products, the same discounts or use the same methods to calculate prices.
That is why it is very important to contact several insurance companies, get quotes from each of them and compare your options. You may find that one insurer offers the same or even better coverage at a lower price than another company. If you don't have the time to compare the prices of all the companies one by one, where we compare more than 29 insurance companies for you, completely free!
Simply enter your insurance details (ie the vehicle's characteristics as well as the owner's details) and immediately see the available prices and offers from up to 29 insurance companies!
Mistake #2: You compare offers unorthodoxly
In addition to the basic comparison of insurance policies for your car, it is necessary to be sure that you carry out the comparison in their true dimension.
It is common for consumers to be surprised to discover that there is a proper and unorthodox way to compare car insurance policies. The correct method is to proceed with a detailed comparison that will include all the elements of the contract and not just the price.
Insurance plans vary greatly from one another, so it is critical to ensure that in the comparison process, you are comparing the same benefits and coverages and not just looking at price as coverages can vary widely!
If, for example, a car insurance you are looking at includes covers such as roadside assistance and legal protection, make sure that the next offer has similar features of covers with the same limits and discounts. This is the only way to achieve an accurate and correct price and coverage comparison. It is crucial when requesting an insurance quote for your vehicle either through an insurance company or through , that you give detailed and accurate answers to the questions that will be asked through the online insurance form. The correctness of your answers is critical to the accuracy of the offer you will receive. Any omission or mistake can lead you to a proposal that does not meet your real needs. During the quote request process, you must be prepared to provide information about your car make and model, driving habits, as well as personal information such as age, gender and address. Another error that often occurs – intentionally or unintentionally – by policyholders is misinformation when submitting the vehicle insurance application. Sometimes the error is simply an oversight, such as when a customer neglects to list another person who drives the car frequently as a second driver, and other times it is intentional, such as when someone falsely states a different address in order to take advantage of lower rates at that the party against its own territory. Regardless of intent, if it is discovered that you have submitted false information or falsified your details to your car insurance company, the result may be the cancellation of your policy or the denial of coverage in the event of an accident. If someone else is driving the car and has a license for more than one year and is over 23 years old, they do not need to be declared to the insurance company as a 2nd driver , but it would be good to do so so that the company is aware of those they drive your car. However, if the driver is young (ie license less than 1 year and/or age under 23) then you must definitely declare this to the company as the premium to be paid will have to be calculated, due to higher risk. When purchasing your car insurance policy, it is your responsibility to ensure that the cover you choose is adequate. By the concept of "adequate coverage" we mean the level of coverage that not only meets the basic criteria of compulsory insurance, but also that which covers your personal needs. The minimum required coverage in Greece includes civil liability for material damage and against third parties – the so-called basic car insurance that every vehicle on the road must have. In addition, if you have bought the car with a loan, the bank will require additional coverage and usually mixed insurance is necessary. Failure to purchase the coverages required by the bank may jeopardize your loan agreement and possibly lead to its cancellation. In the worst case scenario, the financial institution may even take legal action against you. Choosing the basic insurance package for your car, although seemingly economical, is not always the most suitable. With this particular option, you are ignoring several additional coverages that could literally be seen as a financial savior in a possible accident. For luxury car owners, the additional coverage of comprehensive comprehensive insurance is an investment and "shield" against a potential financial loss in the event of an accident through their own fault. Undoubtedly, it is better to consider all available options before making a decision that will significantly affect the safety of your car. Just as underinsuring is an oversight, overinsuring is an equally common oversight. It's important to avoid this mistake, especially if you're looking to keep premium costs reasonable. You may think it's important to have a lot of coverage in your insurance, but not all types of optional coverage are necessary for every situation and for every car. For example, if the value of your vehicle is not high, comprehensive insurance or even theft cover may not be financially justified and may be overkill! When buying a fire/theft insurance as well as mixed comprehensive cover, you also set the deductible limit. The exemption is the amount that you participate in each damage and from then on the insurance company takes over. Every car insurance policy includes such amounts and the one you choose drastically affects the cost of the insurance. But it is essential to set a deductible that is feasible for you to pay in case it is needed, because this amount will have to be paid before the insurance will cover any damages. Do not forget that as you increase the amount of the exemption, the amount of insurance premiums decreases. On the other hand, this entails increased participation in the event of an accident due to your own fault. It is a common phenomenon to see policyholders remain loyal to the same insurance company for many years, without looking for other offers! While many believe this will secure them financially advantageous offers over time, this is rarely the case. When it's time to renew your policy, it's wise to research the market to ensure your current provider still offers the best combination of price and coverage. If you find that another insurer offers the same or better coverage at a lower cost, it may be worth considering switching. You can do this through where we give you the opportunity to compare prices for cheap car insurance in up to 29 insurance companies with just 1 click! In addition, shortly before the renewal of your policy, our partners will inform you if there are more favorable offers from other insurance companies, with the same coverage, so that you can switch to a new policy! Getting a vehicle that leads to high insurance premiums is a big mistake in case you cannot afford its expenses. Although a luxury, sports or collectible vintage car may enchant you, the truth is that the more expensive a vehicle is, the higher the cost of insuring it. So if you want to keep insurance costs low, getting an expensive car is not the wisest choice. Before buying a car, think carefully about all regional fixed costs such as car insurance, annual service, road tax, etc. In the area of car insurance, there are plenty of discounts and offers waiting to be taken advantage of! The discounts are so numerous that it would be a real remiss not to take advantage of at least one of them as a driver when insuring yourself! On our special website for car insurance you can see the biggest offers, while on the insurance form you will see all the offers together! You find the largest insurance companies and compare prices, coverage and benefits with just 1 click – all gathered! See in detail what each insurance company offers for your car and get insured online in just 1 minute from the comfort of your home from your computer or mobile phone! And if you need help to avoid any of the above mistakes, our associates are always available to help you make the best possible choice for your own car!Mistake #3: Not being prepared when applying to buy auto insurance
Mistake #4: Inaccuracies on the car insurance application
Mistake #5: Not adding new drivers to your contract
Mistake #6: Insufficient insurance coverage for your vehicle
Mistake #7: Limiting yourself to the bare minimum insurance coverage
Mistake #8: Burdening your pocket with excessive insurance coverage
Mistake #9: Not choosing your exemption amount correctly
Mistake #10: Obsessing over the same insurance company
Mistake #11: Choosing a car with high insurance costs
Mistake #12: Don't overlook deals!