Most Costly Auto Insurance Mistake

When it comes to auto insurance, there are some mistakes that can mean the difference between an affordable policy and an unaffordable one. This article will go over some of the most costly mistakes you can make when it comes to your insurance.

Keeping Your Auto Insurance Affordable

We all know that auto insurance, costly though it may be, is not something we want to do without. Accidents can happen to the most careful of drivers, and it’s never worth it to risk more than necessary. But not all insurance is created equal, and there are mistakes you can make that drive up the cost of your insurance exponentially. While there’s no such thing as a good car accident, there’s nothing worse than being in an accident you’re completely unprepared for, which is why insurance is so important. In order to keep those premiums as low as possible, avoid these costly mistakes.

Getting a Traffic Ticket

While no one wants to get a traffic ticket, the consequences of getting one go far beyond the ticket itself; getting a ticket is one of the most common ways to increase your insurance, and can easily be avoided. As tempting as it might be to speed or to glide by a stop sign without coming to a full stop, don’t do it. Not only are you putting other drivers and pedestrians at risk, but you also stand a chance of driving up your auto insurance prices by getting a ticket you could have avoided with ease – and spending years kicking yourself for not following the rules of the road.

Not Preparing For Your Teen

If you have a child who’s coming up of driving age, you have more to think about more than just teaching them to pump gas: your young, inexperienced driver is going to be expensive to insure. Fortunately, there are ways to reduce these prices if you plan ahead of time. There are discounts available for insuring your teen based on things like driver’s education and their grades. While their insurance is going to cost you more no matter what, if you prepare ahead of time you can save yourself a lot of money once your child is ready to get behind the wheel.

Causing an Accident

Yes, there it is – being at-fault in an accident is a sure way to drive up your insurance rates, if not have your policy canceled altogether. While on some policies you may be eligible for accident forgiveness, this only applies to your first accident, and it is a far cry from a get-out-of-jail-free card. Take every precaution while driving to make sure you’re never responsible for an accident. Since most accidents are caused by a driver violating traffic regulations, this means sticking to the law, and not putting your insurance prices – or your life – in danger.

Lying to Your Insurance Company

Think you can trick your way into lower insurance rates by failing to mention a traffic ticket or keeping quiet about the new driver in your family? Think again. The chances that your insurance company will never find out about your little white lie are very low, and once they do, the consequences will cost you more than your dishonesty ever saved you. Your insurance company could back-rate you or even cancel your insurance policy, making the chances of finding affordable insurance somewhere else next to impossible. Always be honest with your insurance company.