Auto insurance can be costly and confusing at times, and one of the hardest parts of choosing it is knowing what types of coverage you should have. It is also hard to know how much you should choose for your deductible, yet these factors will play a big role in a claim you have to file after causing an accident. In fact, here are three big mistakes you should try to avoid making, as they will be costly mistakes if you ever have to file a claim on your policy.
Not having the right coverage
The first mistake you should avoid making is not having the right coverage on your car. If you hit a deer, for example, and do not have comprehensive insurance coverage, you would not be able to file a claim for the damages. Instead, you would be solely responsible to pay for the repairs your car needs after striking the deer. You can save money by not adding comprehensive coverage, but you are also taking a lot of big risks by not doing this. It is important to make sure you are fully covered, even if it means spending a little more on the premiums for the policy.
Having a deductible that is way too high
The second costly mistake you should aim to avoid is having a deductible that is too high. In the above example of hitting a deer, imagine if you had $2,500 in damage to your car and had a $2,000 deductible, you would end up having to pay $2,000 of the damage. If you had a lower deductible, such as $500, you would only have to pay the $500, and the insurance company would pay the rest.
Turning in a claim that is not high enough
The other mistake you should avoid making is filing a claim when the damage is not really high enough to justify filing the claim. When you file a claim, you take the risk of your insurance rates increasing. If you can afford to pay the damages out of your pocket, you can avoid this risk.
While you can keep your auto insurance costs down by not having as much coverage and by having a high deductible, these can be costly mistakes to make if you ever find yourself in a situation where you cause an accident and need to file a claim. To learn more, contact an auto insurance company to speak to an agent.Share