Don’t Get Bitten By Bad Advice on Auto Insurance

If you’re in the market to buy a new auto insurance policy, beware of the countless tips that friends and family offer in order to get the best rate possible

Although they mean well, sometimes they unknowingly offer the worst advice. But don’t worry, we’ve listed some of the most common pieces of advice that you need to consider very carefully.

Worst advice #1Worst advice #1: Only purchase the minimum coverage required by law

It’s common for drivers on a budget to only buy the minimum coverage required by their state, which is usually property damage and bodily injury liability coverage. The problem is that it may not be enough to protect you if you’re involved in a serious car accident

Worst advice #1Worst advice #1: Only purchase the minimum coverage required by law

In California, for example, the limit per accident for medical expenses is $30,000. If your policy has a $30,000 limit and the medical expenses of the person you injured amount to $100,000, you’re responsible for coming up with the remaining $70,000.

Worst advice #2Worst advice #2: Lie to your agent to get a lower rate

In an attempt to get the lowest auto insurance rate, some people bend the truth or lie when getting a quote from an agent. If you were ever to file a claim and your agent discovers the truth, this could result in delays with your claim settlement or even void your policy, leaving you without any coverage.

Worst advice #3Worst advice #3: Go with the company that offers the cheapest rate

Sure, everyone wants to save money, but this could potentially take a bite out of your wallet in the long run. Before you proceed to do business with the company offering the lowest rate, do some homework and find out more about the company to make sure they’re legitimate and financially stable.

Worst advice #3Worst advice #3: Go with the company that offers the cheapest rate

You’ll also want to ensure they have a good track record for fairness and customer service. Check out the National Association of Insurance Commissioners’ Consumer Information Source to find information on complaints, licensing information and important financial data.

Worst advice #4Worst advice #4: If you find a lower rate with another company, automatically cancel your

current policy

If you decide to shop around for a lower rate from other companies, don’t act too quickly if you find a better deal The best thing to do is to call your current insurance company and let them know that you’ve found a better rate with another company.

Worst advice #4Worst advice #4: If you find a lower rate with another company, automatically cancel your

current policy

At this point, your agent will take a look at your situation and figure out if they are, in fact, offering you the best rate available for you. It’s quite possible that there are new discounts that you may be eligible for, or perhaps there’s a new plan that comes at a lower price.

Worst advice #4Worst advice #4: If you find a lower rate with another company, automatically cancel your

current policy

Also, make sure that the lower-priced quote from the competitor matches the same coverage you already have.

Although it’s in your best interest to save money on car insurance, be sure to make informed decisions and carefully evaluate all the advice you get from others, because sometimes, it’s simply the worst advice you can get.