Insurance may not be a fun expense, but it is an important one. Yes, it is required by law in most states. In addition, it will protect you financially if you are involved in an accident. Unfortunately, you may not realize you are making a few mistakes when securing your auto insurance coverage, which could leave you in distress. Here are a few mistakes to avoid when securing car insurance.

Not Having Enough Coverage

There are minimum levels of coverage you are required to have on your vehicle insurance. These minimum levels may meet state laws, but they may not be sufficient if you are involved in a serious accident.

Property liability coverage of only a few thousand dollars may be an example of minimum coverage in your state. Unfortunately, this amount of coverage will not be enough if you are involved in an accident that leads to serious damage and even medical expenses for yourself or another driver.

Less is not more when it comes to insurance. It is best to think of extra coverage as a smart investment.

Not Understanding Deductibles

Another mistake you may make is not understanding a deductible and its importance. Deductibles are basically the amount of money you need to pay out of pocket before your insurance company will pay.

In most cases, a higher deductible will mean lower premiums. You may think this is the best option for reducing the cost of your insurance premiums, but the higher deductibles will need to be paid if and when you are involved in an accident or your vehicle sustains damage of some sort.

It is best to weigh out the pros and cons of higher deductibles and lower premiums to determine if this is the right option for you.

Not Considering Extras

Other than higher coverage amounts, there are many extras you can add on to your insurance policy. These extras may increase your premiums, but they can be worthwhile investments.

Roadside assistance, for instance, can be a great extra to consider. For just a small fee, you can have mechanics and tow trucks arrive at your vehicle when you are at home, at work, or while on the go to help with any mechanical issues or other problems that affect your vehicle's operation.

Rental car coverage is also important. If your vehicle is damaged in an accident or another event, your insurance company will pay for you to have a rental vehicle for a specific period of time. This ensures you always have the transportation you need.

For more information, contact a company like Affordable Insurance.

Share