When it comes to auto insurance, most Americans know that certain cars cost more than others. The most expensive cars typically pay the highest premiums and there is an abundance of information available on automobile rates. So why doesn’t this same knowledge apply when it comes to insuring a pact (also known as a crosstown or crossover) sport utility vehicle (SUV)?
The answer is simple: people don’t think about their insurance until they need it. By the time a person needs to file a claim, their policy has been in place for years and key information may have been long forgotten. This inadvertent oversight can lead to some costly mistakes that often go unnoticed until an insurer denies coverage or a policyholder needs to make a claim.
Once those mistakes are exposed, they can leave a person’s finances in shambles and their families without the protection they need. The best course of action is to avoid the following common mistakes from the start.
1) Not getting an agreement in writing
Some dealers advertise low prices for pact SUVs, but when buyers get to the dealership they are told that low rate only applies if they take a specific upgrade. This hidden charge may not be mentioned until closing time, when it is too late to back out. If the agreement was made verbally or through email this can leave room for arguments later on. To avoid this situation in the future, make sure to ask for all changes to the agreement in writing.
2) Not reading the policy before signing it
The final step in buying a pact SUV is putting ink on paper (or electronic signature). While this may seem like an informal action that can be done without thinking, there could be hidden conditions that are impossible to detect if the policy is not read first. It may be the case that signing without reading means agreeing to a very expensive monthly payment or it could also mean waiving important rights upon filing an insurance claim.
3) Not understanding the policy’s terms and conditions
Regardless of how minor or major a mistake may seem, there is always potential for something to go wrong. To reduce the risk of a claim being denied or an insurance claim going unpaid, make sure to take time and fully comprehend the policy’s terms and conditions.
4) Not adding additional drivers to policies
When it comes time to add another driver to an existing insurance policy, most people think about how much they trust the newly added person. Some people may think that the person they are adding is very unlikely to get into an accident, so there is no use paying extra for insurance. However, if someone adds their new boyfriend or girlfriend, they discover just how costly it can be when that person has numerous traffic violations.
5) Not updating addresses and telephone numbers
When a situation arises that requires contact by an insurance company, it is crucial that the policyholder be reachable. If an insurer needs to file a claim or send out an important notice, there may not be any other way for them to find the customer. Make sure to provide up-to-date information about where someone lives and works (if they are employed).
6) Not renewing policies
Believe it or not, some people don’t bother to keep their insurance up-to-date once the policy has expired. This can happen for any number of reasons, but it is always best to avoid this mistake by getting automatic renewal notices and having the option to immediately re-up. When a pact SUV owner lets their policy lapse, they are putting themselves and their families at risk for tremendous financial loss.
How do you know if someone has made common mistakes in pact sport utility vehicle insurance?
There could be hidden conditions that are impossible to detect if the policy is not read first. It may be the case that signing without reading means agreeing to a very expensive monthly payment or it could also mean waiving important rights upon filing an insurance claim.
Will my pact SUV insurance policy be canceled if I don’t pay?
Some dealers advertise low prices for pact SUVs, but when buyers get to the dealership they are told that low rate only applies if the customer purchases extra services like roadside assistance, credit protection or VIN etching. This can leave room for arguments later on. To avoid this situation in the future, make sure to ask for all changes to the agreement in writing.
What happens if you don’t renew your pact SUV insurance policy?
When a pact SUV owner lets their policy lapse, they are putting themselves and their families at risk for tremendous financial loss.
For The Most Part
The article has been a great resource for understanding the common mistakes people make when they’re purchasing insurance. Hopefully, you can avoid these pitfalls and get an awesome deal on your new policy! If you have any questions about what we discussed or need help with anything else related to owning a car in general, please feel free to give us a call. We know that this is one of those purchases where it’s hard to find unbiased information so we want you to be confident in your decision making process.