Avoiding the Biggest Car Insurance Buying Mistakes

How many mistakes are you making with your car insurance? You can leave a lot of money on the table if you don’t know what you’re doing when shopping for car insurance.

When you think about it, needing car insurance is one of the few things that just about everybody can agree on–and it’s the law. Sure, we may vote for different people, watch different television shows, but when it comes to being on the road, we all want to be protected. Whether it’s our fault or another’s, we want to be sure that our damages are covered and that the other driver is taken care of too.

Picking the right car insurance coverage can be tricky. Sure, you can just go with whatever company your parents used or pick the first thing you find, but you wouldn’t do when in buying a car–so why would pick your insurance that way? You’ll end up paying more money or with a plan that doesn’t have the coverage you need.

To guide your search, here are crucial mistakes to avoid in purchasing your next policy. Or, you can tap ‘Learn More’ below to see the top insurance options available in your area.

Not Shopping Around for the Best Deal


It sounds obvious, but you’d be surprised at how many people buy insurance based on misleading pop-up ads or are under the impression that all companies offer the same deal. The truth is, you can compare the exact same coverage with a dozen companies and have quotes that differ by as much as 50%. There are websites that will compare quotes for you. It may seem like unnecessary work, but if you can save an extra $75 per month, isn’t it worth 20 minutes of your time?

Choose the Wrong Coverage

If you have a 1992 Ford Escort worth $2,000, you really don’t need the same coverage as if you had a 2012 Lamborghini worth $200K. Every state has a minimum amount of coverage, usually just to make sure you can take care of the other guy in the event of an accident. If you’re driving around in a car that is worth less than a nice suit and you wreck it, getting it fixed may not make sense. This means carrying collision coverage may not be worth the cost. Find out the minimum needed by law and work your way up from there. But don’t skimp. The last thing you want is to find out you didn’t have enough coverage after an accident happens.

Ignore Your Credit Score

This doesn’t have to do with just car insurance, but life in general: keep a good credit score! The days of banks were handing over loans and credit willy-nilly are long over and your credit score means something. Like your SAT score on a college application, you credit score determines so many financial options in your life. When it comes to car insurance, if you don’t have a good credit score, you’ll be paying higher premiums. If you have bad credit, look to a credit counseling agency to help fix the problems.

Don’t Take Advantage of Discounts

Do you own a second car or a home? Do you have health and/or life insurance? Do you have a spotless driving record? If you’re a student, do you have great grades? Insurance agencies are moneymaking enterprises who will do what they can to get your money. Don’t miss out on these money-saving programs. If you own more than one policy with a company, or you have exhibited behavior of someone who is unlikely to need insurance, the companies are going to find a way to give you discounts… but only if you ask. You might be surprised just how much money you can save bundling policies.

Be prepared the next time you need to change up your auto insurance. Follow these top tips, and you’ll negotiate your way to a more affordable, money-saving protection plan. Your auto insurance should always suit your car, your driving, and your financial needs–and don’t forget that you can always look for a better deal.