The Seven Deadly Sins of the Auto Insurance Shopper

The Seven Deadly Sins of the Auto Insurance Shopper

Don’t make one of these mistakes that could ruin your chances of getting an accurate (and cheap!) quote on your auto insurance.

Greed. Sloth. Gluttony. Lust. Envy. Wrath. Pride. Everyone knows the seven deadly sins. But do you know the seven deadly sins that most auto insurance shoppers make? More importantly, do you know how to make sure you don’t fall prey to their sinister appeal?

When you’re shopping around for auto insurance quotes you want to do everything you can to make sure you get the lowest rate possible. That’s a given. The problem is, many auto insurance shoppers take their quest a little too far and cross the line. Committing the seven deadly sins of auto insurance might not send your soul roasting for all of eternity, but it can hand you a nasty surprise when the time comes to sign on the dotted line for your insurance policy-or to actually file your claim.

The Seven Deadly Sins of Auto Insurance Shoppers

1) Covering Up Their Driving Record

Okay, no one’s proud of the fact that they’ve gotten a ticket, caused an accident or been convicted of a DUI. That’s probably not something you’re going to advertise down at the pub on Friday night. But guess what? All that stuff’s on your permanent record down at the DMV, and your auto insurance carrier has access to that information at the click of a button-and they are going to check before they issue you an auto insurance policy.

Speeding tickets don’t just raise your insurance, they also negate any Good Driver’s discounts you may have had. This can add hundreds of dollars a year onto your insurance premiums.

Tickets and convictions can raise your insurance premiums exponentially, but there are some companies that are better about it than others. Many even have special programs for these drivers. The whole point of shopping around for auto insurance is to find the best price possible. By fibbing on your initial quote request you’re only hurting yourself.

2) Forgetting to Shop Around

All too often auto insurance shoppers fall prey to the first sweet talking auto insurance quote that shows some interest without looking around to see if they can find something better. Nine times out of ten the first quote you get isn’t going to be the best.

3) Asking for Discounts They Don’t Qualify For

Most auto insurance carriers cut you some slack on your insurance premiums if your vehicle has certain safety features that minimize the chances that your car will be stolen or involved in an accident (thereby requiring them to part with some of their profit margin). Anti-lock brakes and a built in security system are only a few examples. Be careful though. It’s tempting to say your car has safety features it doesn’t have (or you’re not sure it has) to get a lower quote, assuming they’ll never know the difference.

The problem with that logic is that not all makes and models are the same, and some simply don’t offer the safety features you’re claiming they do-and your insurance company will have that information on file.

Today’s lesson? It doesn’t pay lie or cover up when you’re shopping for auto insurance. It will come back to haunt you every time.

4) Only Asking for the State Minimum

Every state has a minimum level of auto insurance that your car has to have, but just because that’s all you have to have doesn’t mean that’s all you should have. If you’re carrying $10,000 in liability property damage driving a $17,000 vehicle (that’s not covered by minimum liability) you could find yourself holding the bag on a $17,000 auto loan and no car to show for it because you didn’t want to spend an extra seventy five dollars a month on your auto insurance.

5) Choosing an Auto Insurance Policy Based on Price Rather Than Quality

When you’re shopping around for a quote on auto insurance you want to save money, but you also want to make sure you’re not going to end up homeless and buried in debt if you’re in an accident. That means you want an insurance policy that’s going to do its job and protect you if you’ve been in an accident rather than just sitting around looking pretty on your record at the DMV.

6) Duplicating Coverage

Today’s auto insurance companies will sell you anything-literally. There are so many extra features and add-ons to your coverage out there you can tack on to your auto insurance policy that it can leave you feeling like a kid in a candy store-surrounded by sweet stuff you don’t really need.

Think about it. If you have AAA, why do you need emergency roadside assistance? If you have medical and life insurance, why do you need even more coverage from your auto insurance carrier? Leaving “kid in a candy shop” syndrome behind and only buying the coverage you need rather than what’s shiny and new will save you hundreds a year on your insurance premiums.

7) Assuming All Auto Insurance Companies are Created Equal

When you assume one insurance carrier is just as good as another you’re going to minimize the pool of possibilities you’re willing to explore. Different insurance providers offer different benefits, discounts, specials and opportunities. Land of opportunity or not, no two insurance carriers are ever the same.

Do any of these sound familiar? We’ve all been guilty of one or two of them at some point in time. The important thing is to learn to move beyond their siren’s call and do what’s best for you and your bank account.

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