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					Car Insurance: 6 Mistakes And How To Avoid Them

Picking a car insurance carrier isn't a fun way to spend your day, but it's necessary and the
more research you put in the better. Not choosing the right plan or company will end up
costing you dearly if you do get into a collision.

Maintain car insurance is compulsory in the US, but drivers still make many mistakes when
choosing a provider, plan, and when dealing with their carriers. It is important to take your time
to choose what works best for you financially as well as practically. Here are six common
mistakes to avoid.

1. No Insurance
The biggest mistake you can make is driving your car when uninsured, even for just a day. Not
only is it illegal, but even a small bump to another driver can set you back more than a thousand
dollars. There's no reason to take the risk and there are plenty of low-cost carriers that are
affordable even for tight budgets.

2. Underinsured
If you are financially comfortable, there is no reason not to be paying for more than the most
bare minimum of coverage. The reason being that liability only covers very little and a few extra
dollars a month can provide far more protection. If you have a newer car it is especially
important. Supplemental insurance covers many more common problems including theft,
vandalism, natural disasters, collision by an uninsured motorist and accidents involving
stationary objects.

3. Deductibles
The higher the deductible, the lower your monthly rates. However, you are responsible for
paying this deductible. You can't simply change your mind or adjust it as you see fit. Following a
collision, you may simply not have the funds, which can get you into trouble. Choose a
deductible that you can cover with an emergency fund or that can be scraped together by your
next paycheck. You can always change the deductible later once you've put some extra money
aside for it.

4. Fly by Nights
Rock bottom insurance rates are usually offered by fly by night companies, this is doubly true for
people with tarnished records that may include DUIs, multiple collisions, or several tickets. You
will pay more if you have strikes on your record, so if a quote seems too good to be true, it may
cover you legally, but you likely won't see any compensation if there is a problem. Stick with
companies and agents that have a history and are trustworthy.

5. Negotiate
If you've been in a collision, the other motorist may attempt to settle without going through
insurance. This almost always backfires for one party, and that will likely be you if the other
person suggests it. You almost always end up spending more or receiving less than you are
owed. Always go through the proper channels, and if they are uninsured, if you have the proper
coverage you won't have to worry.

6. Not Updating
Sometimes it's beneficial to switch carriers, even if you've been with the same one for several
years. While they will try to keep you on with promises of extra benefits and perks, there may be
a better carrier out there for you. Review your contract annually and compare offers. There are
many Internet tools that make this a quick and easy process, and you might end up saving some
big bucks.

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