10 Follies Committed By People When Selecting Car Insurance

Every car owner has to buy car insurance. Choosing the right insurance is not an easy job and often people commit certain mistakes and land up with inadequate insurance cover or buying up very expensive package. Right car insurance means a good cover for the driver, the car itself and any other person sitting in the car at the time of mishap.
First and perhaps the biggest blunder made by people is to not get insurance quotes from several companies. Comparison of terms and conditions of various insurance policies from different companies ensures a person can get lowest possible insurance quote for his car. Comparing prices also gives the in depth knowledge of the coverage and services provided with the cover.
Buying a policy that is cheapest among the lot is second mistake committed by people. Remember, adequate coverage is just not possible with the cheapest policy. It is one big mistake that people often do and realize its repercussions in case of accidents. Policy holder pays dearly as company has limited liability in case of a mishap and car owner has to cough up money from his own pocket in most instances.
Third common mistake people commit is not to provide the full information about them. They end up getting lesser discounts than they otherwise would as they did not divulge all the details. Fourth mistake done by people in choosing the car insurance is not asking discounts by the companies. Buying a car insurance policy is like buying any other product and bargaining allows one to choose the product with least price and best coverage.
Rates of car insurance also depend on the credit rating and the fifth mistake that people do is to go for car insurance just after their credit rating has got some beating. This is not the right time to change car or to get car insurance. Often there are hidden charges associated with every insurance policy and sixth mistake committed by people is to not pay heed to them. This often costs dearly to the insurance buyer.
Car owner must renew insurance cover as soon as it lapses and it is here that seventh mistake is done by them. Lapse in cover indicates irresponsible behavior of the person and is always reflected in higher rates of an insurance policy. For those who want insurance cover for rental car often make eighth mistake as all policies do not automatically include cover for rental cars.
Ninth mistake done by the person looking for car insurance is done by old car owners. Due to lack of knowledge they fail to decrease the coverage amount even after the car has depreciated considerably. Reducing the coverage amount reduces cost of insurance considerably. Car owner must see that collision coverage is cost effective. It is in this regard that collision coverage must be carefully analyzed to see its cost effectiveness.
Tenth mistake done by the car owner is not to inform the changes made by him to the car. The upgrading or value addition done to your car must be informed to the insurance company immediately. Report of theft or accident should be given to the company on priority basis. You must inform the company immediately if you are changing the car from a domestic one into a commercial one and vice versa.