Monday, January 28, 2008

Auto Insurance Buying Mistakes

1. Shopping for the Lowest Price Available
Compare not only price, but policy features as well, because you get what you pay for. Not all auto insurance companies propose enhanced benefits like superior claims handling, customer service guarantees, and roadside rental car delivery. Discover all of the benefits included to see the true value you receive.

2. Underestimating the Value of OEM Parts
When your car was built, the manufacturer carefully chose every part. Do you want the replacement parts to be less carefully selected, if your car has to be repaired? Make sure that your auto insurance company specifies genuine Original Equipment Manufacturer (OEM) replacement parts in collision repairs after accidents. A lot of companies use less expensive aftermarket parts that may decrease the value of your car, affect its appearance and jeopardize the warranty.

3. Selecting Inadequate Liability Coverage
Liability insurance helps protect you and your assets if you cause an injury to others or damage the property of others with your vehicle. If you select lower liability limits, an accident that causes serious injury can result in medical bills and lost wages that could far exceed your minimum coverage and leave you financially exposed. Be sure you’re fully protected.

4. Missing Out on Potential Discounts
It is possible to get discounts for low-mileage driving, having multiple policies through the same insurance carrier, using anti-theft devices, taking defensive driving courses, and more. Make sure to ask which discounts are available.

5. Neglecting to Consider a Major Life Change
Keep your policy current. For instance, forgetting to add a new teen driver to your policy can cost you dearly in the case of an accident. You may need to change your auto insurance if you purchase a new home, car or other property; change your marital status; start a business; move; or retire.