Car insurance is a necessity for any vehicle. But, did you know that there are some common mistakes people make when buying car insurance? In this blog post, we will be talking about the top 12 mistakes to avoid in order to get the best rates and coverage for your Utility Vehicle Car!
1. Misrepresenting Your Vehicle
One of the top mistakes is to misrepresent your vehicle. For instance, say you go in and tell the insurance rep that your car is a ‘1500’ when really it’s a ‘5000’. This will cause problems if they find out later because that’ll bump your premiums for being under-insured.
2. Not Using the Vehicle for Transportation
People think that they can save money and just tell their insurance rep that they don’t really use their vehicle to get anywhere. However, it is important to be able to provide accurate information so you aren’t uninsured or under-insured. So, next time you go in for your car insurance renewal, consider taking a few minutes to review your policy and make sure it’s accurate.
3. Not Using the Vehicle for Business Purposes/Personal Use
If you own a Utility Vehicle Car that you use both for business and personal purposes, chances are that this will count as two vehicles in most states so you have two premiums to pay. As always, be honest with your insurance company, and if possible, add your business as an additional driver so you can save money.
4. Not Checking the Vehicle’s Market Value
Most people don’t realize that their car’s market value will play a big role in how much they pay for car insurance. If you buy a vehicle and it drops drastically in value right away, this means that if you ever have to make a claim, it will be at the lower value.
5. No Comprehensive Coverage
If your car is worth over $3,000 and less than 10 years old, it would benefit you to get comprehensive coverage for your vehicle as well as collision coverage. This will protect against damages from natural disasters such as hail and floods.
6. Not Having the Car’s VIN Number on File with Your Insurance Company
Make sure you have your car’s VIN number on hand so that if you need to make a claim, your insurance company will know right away what kind of car it is. If you don’t have this information ready, the insurance company will have to look it up.
7. Not Getting an Accident Report
If you are involved in an accident, make sure you get an official report so that your insurance company can accurately determine how much your rates should increase if at all. If you do not get one, there is a chance that they may under-charge you and you won’t know until it’s time for your next renewal.
8. Not Getting a Police Report
Just like with an accident report, if you are ever in an accident where someone else is at fault and they flee the scene of the incident, make sure you get a police report immediately so that your insurance company can process the claim as soon as possible.
9. Not Updating Your Insurance Company with Any Changes to the Vehicle
Similar to when you would update your insurance company with a change of address, it’s critical that you provide them with information if any changes are made to the vehicle between renewals for car insurance.
10. Carrying Excess Liability Only in the Event of an Accident
When you are filing your information for car insurance, make sure that you carry enough liability coverage to protect yourself against damages in case there is ever an accident where someone else is at fault. It’s better to be safe than sorry!
11. Not Getting Comprehensive Coverage on Older Vehicles
If you have a car that you don’t use to commute and it’s one of those extra cars that you just leave in the garage, you might not think about comprehensive coverage. However, older cars are much easier for thieves to break into and steal because technology gets updated so often these days. So why throw your money away?
12. Not Buying Additional Coverage if You Plan to Loan Your Car to Someone
If you plan on loaning your car out to someone, say a friend or family member, it’s smart to purchase additional coverage so that you are covered if anything were to happen. This way, even though the driver may have their own comprehensive coverage, you have extra protection just in case the worst happens. You want to be safe. That’s why you purchased a car in the first place, right?
Is my car insurance policy still the most affordable if I have an accident with a friend?
If your friend is at fault, you may be surprised to find out that since they’re not on your policy, their insurance will cover the claim. However, if they aren’t insured and it’s determined that it wasn’t their fault, then you’ll be on the hook for a large deductible.
What if I’m pulled over by the police while someone else was driving my car?
You are responsible for any damages, regardless of who is behind the wheel, unless they have comprehensive coverage in their own policy. If that’s the case, then they will pay for it. If they don’t, then you will.
Is it possible to get comprehensive coverage without collision?
Yes, although the rates will be higher if you don’t purchase both at the same time. This is why it’s smart to add this type of coverage onto your existing policy (or vice versa) so that you can lower your rates.
What if I’m driving someone else’s car, and it gets damaged?
If the driver is included on your policy, then their policy will pay for the damages. If they aren’t, and it’s determined that they weren’t responsible for the accident, then you’ll need to file a claim and pay the deductible.
What should I do if I have to file a claim with someone else’s insurance?
You’ll need to contact your own insurance company so that they can advise you on the next steps and whether or not any money will be reimbursed. You don’t want to make any sudden moves until you know how much money may be returned to you!
What do I need to file an accident claim with my insurance company?
You should bring as much relevant information as possible such as contact information of those involved, statements from all parties at fault, and pictures documenting the damages.
What happens if I don’t get an official accident report?
If there are no witnesses to the accident, then you’ll need to provide your insurance company with another way of determining how much damage occurred. If there are witnesses, then there’s a chance that you can still be reimbursed for damages if your official report wasn’t filed.
Is there any chance that my insurance company will decrease my rates if I have an accident with a friend?
It depends on how serious the damages are, whether or not your friend was insured, and other factors. If you’re lucky, they may only bump them up a little bit.
If I don’t have comprehensive coverage in my policy, will I have to pay for damages from a natural disaster?
Yes. Without this type of coverage, you’re at risk of being responsible for all damages that come from natural disasters such as hail and floods—if your car isn’t otherwise protected under collision coverage.
To Sum Things Up
Have you made any of these mistakes when buying insurance for Utility Vehicle Car? Let us know in the comments below and we’ll help find a solution. It can be tough to get all your information together before shopping around, but it will save time and money if you do! Happy driving 🙂