Sport utility vehicles are popular choices for drivers who want to have a vehicle that can handle any terrain. But what many people don’t know is that these vehicles are not eligible for the same insurance rates as traditional cars. If you’re shopping around for sport utility vehicle insurance, make sure you avoid these mistakes!
1. Assuming Your Current Insurance Policy Can Handle It
If you’ve invested in an expensive and powerful car, it’s worth shopping around to find the best deal on sport utility vehicle insurance. Even if you already have a policy with good coverage, don’t assume that it will cover your new SUV. Be sure to compare rates from several companies before signing anything.
2. Making Your First Call to the Cheapest Company
If you’ve never needed to shop around for car insurance before, you might be tempted to go with the first company you call. However, this is not a good idea because it will likely result in coverage that is far too expensive for your needs. Rather than settling on the first policy you consider, make a list of three or four insurance companies with competitive rates. Then, call them all and learn about their policies before deciding which one to go with.
3. Assuming You Can’t Get Any Discounts
Even if you have been in an accident involving your car in the past or have a poor credit score, it’s possible to get a reduced rate on your SUV insurance. To find the most inexpensive coverage for you, be sure to ask about discounts when you call around to compare rates. You might have to be persistent and shop at several companies before you find an insurer who will offer you a deal, but it’s worth it if you end up with lower monthly premiums.
4. Not Exploring All Your Policy Options
When you are comparing rates, make sure to ask about all of your options. For example, some companies may allow you to choose the degree of liability coverage for comprehensive and collision insurance. If you are willing to assume more risk, you can pay less on your premiums. However, this is not a smart move if you have a newer SUV because not being adequately covered could cause you to go into debt should your car be totaled after an accident.
5. Not Exploring All Your Discount Options
Discounts are great because they allow you to pay less for insurance without reducing the quality of your policy. While some companies offer discounts as part of their standard policies, others may require you to enroll in specific programs before you qualify. To find discounts that are right for your situation, call around and ask about everything available. Most insurers will be happy to go over the details of their deals with you so that you can make the most informed decision possible.
6. Making Multiple Calls to Different Companies
The more times you call around and get different quotes, the harder it is to compare insurance policies because each company’s information is slightly different. To avoid having to spend lots of time compiling data and tweaking your quote, be sure to make just one call to an insurance agent for each vehicle you need to insure. This will allow you to get the clearest picture of the average rate for your situation.
7. Assuming You Can’t Get Cheaper Insurance in Your Area
Unfortunately, if you live in an area with high rates, you might not be able to find a good deal on SUV insurance. But if this is not the case and you find that almost every company charges too much, you should look into going with a specialty insurer. These companies aren’t available everywhere, but they specialize in finding good deals for a wide range of drivers. For the best rates, consider searching online for a company that can give you coverage at a reasonable price.
8. Earning Too Little to Qualify for Discounts
While some discounts are reserved exclusively for those who meet a certain income threshold, most are available to almost anyone. In fact, some insurance companies provide good deals as a reward for safe driving records and long histories with the company. Because there is no reason you should pay more than necessary, be sure to ask about discounts before agreeing to buy your auto insurance policy.
9. Comparing Comprehensive and Collision Rates to Just Liability Insurance
Although liability coverage is the only auto insurance you need to legally drive a car, this type of policy accounts for just part of what your insurer will pay for if there is an accident. In fact, collision and comprehensive coverage usually cost just as much as liability insurance because they offer full protection. For this reason, it pays to compare the rates for all three policies when you are evaluating quotes. Your best bet is to opt for an insurer with competitive rates on liability coverage and comprehensive and collision insurance.
10. Assigning All of your Vehicles to One Company
When you have more than one car or SUV, it makes sense to get insurance for each one. Doing so will allow you to enjoy the best deals possible because most companies offer big discounts for good drivers who insure more than one vehicle with them. The simplest way to do this is by signing up for accounts with different insurers. This way, when your rates go down, you can transfer your business and never worry about losing out on good deals.
11. Not Getting Enough Liability Coverage
The law requires you to get at least the minimum amount of liability insurance available in your state, but this could be far less than what you actually need. To protect yourself against financial hardship should an accident happen, it is wise to select a policy that offers more liability coverage than you need. This way, if anything happens, your insurer will be required to pay for all of the costs that exceed what is covered under the policy.
Why should you get quotes from several different companies?
By getting quotes from several different companies, you can ensure that you are not paying more than necessary for your policy. Insurance is a commodity and there is nothing to stop insurers from overcharging their customers. So, by taking the time to find competitive rates, you can make sure that your budget is not being stretched too thin each month.
Why should you opt for more liability coverage than what the law requires?
If you ever get into an accident, it will be up to you – not your insurer – to pay for the damages. Because you are legally liable to your victims, it makes sense to get more liability coverage than what is required by law. This way, even if your insurer refuses to cover all of the expenses that result from a wreck, you will still be able to pay for everything out of pocket without going broke.
Is it a good idea to shop for insurance online?
In the age of the internet, shopping for auto insurance has never been easier. With just a few clicks of your mouse, you can visit several sites and get quotes from companies across the country. Shopping this way is ideal for those who are pressed for time because all you have to do is enter some personal information and your requirements are automatically sent to dozens of insurance companies.
In The Final Analysis
This article has provided you with some valuable information on the mistakes people make when buying sport utility vehicle insurance. Comment below and share your thoughts about what you’ve read, or use this post as a guide to avoid making these common errors in the future!