car-insurance-small-mistakes

Even though purchasing car insurance is no rocket science, it can be helpful to avoid some of the mistakes that may seem small but which can cost you a lot. A few of the common auto insurance mistakes highlighted:

Not Asking for the Discounts You Are Eligible to Get

Insurance companies typically give a large number of discounts based on certain factors like age and occupation of the driver, the use of the car, the track record of accident-free driving, certificates for safe driving, safety and security features of the car, etc. You should ask for a list of deductions and find out which ones you are eligible for. The cumulative effect can easily be quite significant and represent a major saving.

Paying the Premium in Installments

Most people tend to opt to pay the premium at monthly or quarterly intervals because a lower amount is easier to pay. However, since the insurance company will normally charge an installment fee that can make it more expensive than paying an annual premium.  If you fail to make the installment payment on time, the insurance company will charge you a steep late payment fee or even cancel the policy making the renewal of the cover a more expensive proposition.

Not Having a Good Track Record

If you have a history of traffic violations or accidents, you will be classified as a risky driver and the insurance company will charge you a heftier premium, especially if the number of infraction and claims are more. You can lower the premium amount by not engaging in distracted driving or driving under the influence, according to a leading Ottawa Car Insurance Broker.

Driving for a Longer Distance

The premium payable rises with the distance you cover in a year. The logic of the insurance company is that the more time you spend on the road, the greater the chances of an accident taking place, on top of which, there is increased wear and tear of the car that may result in a component failing and causing an accident that would require an insurance payout. You can easily save a lot on the premium amount if you limit your driving as much as possible and take public transport or carpool. Not only do you spend less on gas and car maintenance but also you protect the environment.

Allowing Multiple Drivers

If you loan the car to a friend or even a member of your family, you lend both the car and the insurance. In case of an accident, your policy will be impacted even if the driver has his own cover. Accordingly, your insurance premium will go through the roof. This makes it necessary for you to be prudent while lending your car. Make sure you give the driver your express permission and that he has a valid driver's license. If the same driver borrows your car regularly, you can consider including in your insurance policy as an additional driver.

Conclusion

By ensuring that you avoid making these mistakes, you can cut the cost of your car insurance premium significantly. However, it is important not to hide any facts from the insurance company because it can have severe fallout when discovered later.

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