Five Mistakes People Make When Choosing Car Insurance

If you own a car in Pennsylvania, you need auto insurance. Dtown Insurance explores five of the top mistakes people make when choosing car insurance. 

Getting the Wrong Coverage

Different types of car insurance exist, and every customer has a unique situation. With a little guidance the insurance agent could help them if they just asked the right questions. For example, if a customer asks for the best rate on car insurance, but the customer neglects to mention that they will be adding a teen driver in the next few months, they may miss the insurance carrier that offers the best rates for multiple family members or specifically young drivers. There are other factors that influence the type of coverage you will need:

• Vehicle make and model
• Vehicle price and amount financed
• Driving experience
• How many miles you drive annually

Getting the Minimum Coverage

You may feel that you can only afford the cheapest minimum coverage, but if an accident occurs, your minimal insurance will likely be inadequate, especially if someone gets hurt and has to go to the hospital. In addition, if you only get liability coverage and you have an accident that is your fault, you will receive no compensation to repair your vehicle and the repairs or a replacement money will come out of pocket. This could be more than the cost for a higher coverage level.

Choosing the Wrong Deductible

When choosing auto insurance, buyers may be tempted to get a high deductible policy to get lower premiums. However, in some cases, this can be a costly mistake. Especially when the policy has young drivers. Beginner drivers are more likely to have an accident, even a minor one, and the cost to repair the vehicle may have a larger out of the pocket cost. Other factors could affect the decision as well, but your insurance agent can help you make the right choice.

Not Asking About Available Discounts

Some people just pay the online premium at the insurance company they choose, but they could be missing lots of savings. For example, AAA Insuraaance offers discounts for membership, multiple policies, good student status, having a theft recovery device and more! Did you know you could get a discount for good grades? Our agents at Dtown Insurance will find the best policy with the best available discounts. Having a dedicated agent shop your auto insurance policy with the most discounts is better than shopping online!

Going Online

One of the biggest mistakes people make when choosing car insurance is going online, lured by a little green mascot, and applying for auto insurance without talking to an agent. It pays to have an agent available to help explain coverages, options, and help reduce risk. For example, if you know you will need a rental in case of an accident, ask if this feature is included and what the price per day and total available days for a rental car will be.