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Are You Wasting Money with These 3 Auto Insurance Myths?

Car insurance is an expense you want to minimize at all costs. Find out which three myths are preventing you from achieving that goal.

You want to keep your car, yourself, and your loved ones protected in case of an accident. That’s why you pay a monthly car insurance note. 

Unfortunately, in your quest to keep that note as small as possible, you may be making some mistakes that make it costlier than it should be. Let’s take a look at those mistakes now so you can avoid them in the future.

Myth #1 – “There’s no need to bundle.”

Some people prefer having a different insurance provider for each asset. They’ll have homeowner’s insurance with one company, car insurance with another, and so on. While this may seem like a harmless strategy, it could be costing you by not bundling to yield extra savings.

Certain insurance companies can offer every coverage under the sun. Provided their service is trustworthy, you may want to consider bundling your car and homeowner’s insurance, for example, with them. In doing so, you can save hundreds of dollars that can be used to pay down debt, pay your monthly bills, or for savings.

While bundling can lead to savings, it’s not the only advantage it provides. The convenience factor should be considered too. If you have multiple vehicles, your home, and other interests covered by one company, you don’t have to call several different contacts. This is a time-saving plus when you need to resolve issues.

Myth #2 – “Lapses in coverage are no big deal.”

Losing your job, reduced income, or some other unfortunate event can make it hard to pay the bills. As that happens, you do everything in your power to keep a roof over your head, the lights on, and food on the table. What’s a cost that can get ignored in such a situation? You guessed it – car insurance.

Regardless of the reason, you should avoid a lapse in coverage. Even a single day without insurance can be seen as a red flag by a company, and it could affect how much you pay per month.  

This is why you should be extra careful when switching providers. If you do, make sure your new policy starts on the exact same day your old plan gets canceled.

Coverage lapses are a considerable risk in the eyes of an insurer, no matter how little or long they last. The company could assume you were driving your car while uninsured, and they’ll include this when determining how you fit as a potential customer. Some companies may reject you if there’s a gap in your insurance history, or they may keep you from enjoying specific discounts.

Myth #3 – “A huge discount is all that matters.”

A mega car insurance discount in a big, bold font may be what catches your eye. Don’t let that discount fool you, though. Just because it seems impressive, doesn’t mean it is. 

Many agents offer significant discounts to make it appear as if you’re getting huge savings. If you shop around, however, you may realize that competitors are less costly.

In short, don’t let a company’s effective marketing practices fool you. Some are better at attracting customers than others. Do your due diligence to find the most budget-friendly policy you can, while ensuring it gives you the protection you need.

Stop! If you need financial assistance such as money to pay bills, a personal loan, or debt relief. See what resources are available to help you today.

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Eric Tomasso