Auto Insurance Mistakes to Avoid as a New Driver
That moment you are allowed to step behind the wheel for the first time is yours, but there is always a price to pay, and Auto Insurance is no exception. Two of the most common errors new drivers make when buying or handling their policies are that they’re being unaware of how insurance works. Such mistakes could lead to hefty premiums, unreasonable coverage, and legal consequences.
Find Cheap Auto InsuranceWhether you are getting your license for the first time or your teen is learning to drive, and your first policy takes effect, this guide will help you avoid the most common Auto Insurance mistakes. Continue reading to reach smarter, safer, and better value choices from the beginning.
Mistake #1: Choosing the Cheapest Policy Without Looking at Coverage
It’s appealing to buy the cheapest auto insurance you can find, especially if you’re a student or working part-time. But, the cheaper isn’t always better. Basic/minimum coverage may not be adequate to take care of very big accidents, especially if you are at fault.
What to do instead: Compare coverage, not price, solely. Search for affordability alongside critical protections such as liability, collision, and comprehensive coverage.
Mistake #2: Ignoring Deductibles
Many new drivers see a low monthly premium and believe they have struck a really good deal, only to find out later on that their deductible, everything they have to pay out of their pocket before insurance kicks in, is extremely high.
What to do instead: Ensure that your deductible is reasonable according to your budget. It might be worth a slightly higher premium if you have the coverage with a reasonable deductible in case of an accident.
Mistake #3: Not Understanding State Requirements
There are different auto insurance needs in each country. Some only demand that the drivers meet the liability requirement, but others may demand that the drivers pay for uninsured motorist coverage or personal injury protection.
What to do instead: Find out how much your state requires for minimum insurance, and make sure that the coverage you want is up to this mark. Not complying with this can result in fines or suspension of the license or worse.
Mistake #4: Forgetting to List All Drivers
If you have a sibling or roommate who is driving your car, or even a parent who is driving it, then each person should be listed on the policy. Leaving them off could save money in the beginning, but you risk claim denials, if not canceled altogether.
What to do instead: Be honest about who will be riding the vehicle. The majority of insurance companies offer flexible options for homes with more than one driver.
Mistake #5: Skipping Comprehensive or Collision Coverage on a New Car
Young drivers tend to believe that by not getting comprehensive and collision coverage, they are likely to save money, especially if they feel they are good drivers. But even seasoned drivers have accidents, and new drivers statistically are more accident-prone.
What to do instead: Even if you drive a new, lease, or a financed car, don’t forget to purchase full coverage. A few extra dollars per month can protect you compared to the thousands you would lay out of pocket after a serious accident or theft.
Mistake #6: Not Asking for Discounts
Insurers provide a vast range of discounts that most new drivers fail to access. These include good student discounts, safe driver programs, and even stipends for Defensive Driving courses.
What to do instead: Never forget to question what discounts are available. Taking a certified driving course can not only improve your skills, but also reduces your premiums.
Mistake #7: Lying or Leaving Out Information
It might seem harmless to tweak your address, say the car is parked in a garage when it’s not, or omit that fender bender from your record, but insurance companies are very good at verifying information.
What to do instead: Always provide accurate and honest information. If you’re caught lying, your policy can be canceled, and future insurers may increase your rates or refuse coverage altogether.
Mistake #8: Not Comparing Rates Annually
Many new drivers stick with the same insurance provider year after year without checking if they’re still getting the best deal. As your driving record improves and you gain experience, your rates may drop—if you shop around.
What to do instead: Review and compare your policy every year. A few hours of research could save you hundreds of dollars.
Mistake #9: Letting Your Policy Lapse
Whether it is forgetting to pay your bill or falsely believing that you do not need coverage when your car is in the shop, even if you let your policy lapse for one day, it could have long-term consequences. It can increase your premiums and restrict your options with coverage in the future.
What to do instead: Set up reminders for the deadline or even enroll for automatic payments to prevent lapses. If you intend not to drive for a while, contact your insurer to inquire about temporary coverage.
Mistake #10: Not Reading the Fine Print
Insurance policies may have complicated terms in them, but ignorance of them can expose you to expensive situations. For instance, your car policy may not cover rentals or have limitations when it comes to where such coverage can come into play.
What to do instead: Take the time to review your policy, or if you have an insurance agent, make him/her explain the key points. Don’t hesitate to ask questions – you’re paying for peace of mind, so be sure you know what you’re paying for.
Find Cheap Auto InsuranceIt is a significant milestone to become a new driver, and such a wise decision can also be exercised while thinking about your Auto Insurance, just as important as learning how to drive. Those are some mistakes to avoid so as to save money, be safe, and have a great start for proper driving. Ensure you are adequately covered, get ideas from various options, and seek assistance when necessary.
Need guidance on the right coverage for you? Speak with an Auto Insurance expert today and ensure you're starting your driving journey the smart way.