Five Mistakes People Make when Buying Car Insurance
Five Mistakes People Make when Buying Car Insurance
There are a surprising number of potential pitfalls associated with buying a car insurance policy. One small error could see you spending hundreds of pounds more than necessary or, worse still, having invalid cover for your vehicle.
In this article we're going to explore five of the biggest mistakes and just what they can end up costing you. By doing so, hopefully you can avoid falling into the same traps and getting yourself the very best deal on your car insurance.
Provide inaccurate details
Momentary lapses are acceptable. Sometimes we fill in forms and simply don't know what the answer is or check the box we think is correct at the time. Unfortunately when it comes to car insurance, this kind of error can prove costly.
For instance, if you're claiming that your vehicle is kept in a garage and it actually sits outside on the road all night, your insurer may not be too sympathetic if it gets stolen as a consequence. In the event of any claim, an insurance company is well within their rights to carry out all due diligence before establishing compensation. If anything is slightly out of place, then this may affect the claim and could even render it invalid.
This is obviously a significant issue and one that is easily avoided. Always be clear with your answers and if you have any queries, don't hesitate to contact the insurer first. Most will provide an FAQ service on their website, if not a quick phone call can save a lot of unnecessary problems further down the line.
Accept a renewal quote without checking details
Many drivers are guilty of simply renewing their car insurance without the slightest consideration for whether it is actually a good deal. Some may even miss small increases, which end up costing you more over the year despite having made no previous claims.
If you've received a renewal notice make sure that you're getting the best available value by getting some alternative quotes. It's usually quick and painless to do, particularly if you go online, and you'll not be put under undue pressure to take up any offers you receive.
This won't always provide you with a cheaper policy, but it is well worth investing a few minutes of your time if only for peace of mind.
Forget to update information
When you move house or make modifications to a vehicle this has a significant impact on the insurance it requires. Sometimes it can reduce a policy, in other instances it will increase markedly. Unfortunately that is an inevitable by-product of the way in which insurance is calculated.
You may be charged for updating information midway through a policy; however, this is far better than having car cover that is almost entirely invalid.
Don't compare available prices
As mentioned in the renewal section, there are literally dozens of insurers and services out there designed to help make searching for your car insurance easier. By getting a number of quotes (from a variety of sources) you can get a good spread of costs and choose a policy that us perfect for you and your budget.
Failure to carry out this simple task could mean that you end up paying well over the odds for your car insurance.
Get too much/too little cover
You can buy yourself third party car insurance only and save a huge amount of money in the process. However, does this provide you with the cover you really need? Unless you're driving a car of limited value or simply don't have the money available for a higher level of cover, you may be needlessly exposing yourself to additional risk. Third party insurance will provide only the most basic cover, therefore compensation may be difficult to achieve in most situations.
However, there is an obvious flipside to this. When you get too much cover, for instance you could choose to go fully comprehensive on a car that is worth markedly less than the annual premium. It doesn't take a professor in mathematics to work out that this isn't good value. You need to have an appropriate level of cover for your budget and circumstances.
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