Mistakes to Avoid when Buying Supermini Car Insurance

Mistakes to Avoid when Buying Supermini Car Insurance

Supermini insurance is a type of car insurance that covers your car if it gets stolen or has an accident. It’s important to make sure you’re getting the right coverage because there are many mistakes people often make when buying Supermini Car Insurance. In this blog post, we will discuss 10 common mistakes and how you can avoid them!

1. Unnecessarily Buying a Comprehensive Policy

Comprehensive insurance is a type of car insurance that covers damages outside of a collision, including vandalism, theft and other events not related to a crash. If your supermini was stolen or vandalized you would be covered up to the limits of the policy for this incident under comprehensive coverage. This kind of policy is often more expensive than a third-party policy because it covers damages caused by the insured driver.

For example, if you total your friend’s car while driving under your own comprehensive policy, his or her vehicle would be covered by your policy. If this was an issue for the friend that owned the totaled vehicle, buying a supermini insurance policy with a relatively high deductible would be a good idea.

2. Buying too Little Liability Coverage

Liability insurance is one of the most basic types of car insurance coverage that helps protect you against the costs of lawsuits caused by bodily injury or property damage to others in an accident, along with defense expenses if you are sued after causing an accident.

Most states require drivers to have at least a minimum amount of liability coverage. If you are in an accident and do not have enough insurance, your assets can be used to pay for the other party’s damages. Although the driver who is found to be at fault will often be sued, no matter which driver was at fault, both drivers may be sued if the court finds both parties shared equal fault (i.e., neither driver was 100% at fault).

To make sure you are covered, experts recommend buying an insurance policy with a minimum of $100,000 in liability coverage. If you have assets that would be at risk should you cause an accident and can afford it, experts recommend you buy even more insurance than the state requires.

3. Not Understanding Differences in Types of Coverage

There are many different types of car insurance policies which provide physical damage coverage, liability, uninsured or underinsured motorist coverage, personal injury protection and comprehensive coverage. Depending on your state’s laws, you might be required to purchase certain kinds of coverage.

For example, in California drivers are required to buy liability coverage which covers personal injury or property damage.

It’s important that you understand the differences in the types of car insurance so you know what kind of policy best fits your needs. At minimum, experts recommend carrying at least state-required amounts of liability coverage and uninsured/underinsured motorist coverage.

4. Buying Deductibles that are Too High or too Low

After buying a policy, most insurance companies give you the option to choose your deductible amounts when purchasing collision and comprehensive coverages. Your deductible is the amount of money you must pay out-of-pocket toward a claim before your car insurance kicks in. The higher the deductible, the lower your premium will be.

Insurance experts recommend choosing a deductible amount that is within your financial means and buy more insurance than you need to cover it in case anything goes wrong. If your car is worth less than the total coverage of the policy you bought, buying collision and comprehensive can be a waste of money as it will not pay out anything if your car is totaled.

5. Not Making Use of Discounts

Many insurance companies offer discounted rates for common features such as alarm systems, anti-theft devices and taking a safe driving course. Taking advantage of these discounts can help you save money on your premium costs.

6. Letting Your Coverage Expire

Most states require drivers to maintain liability insurance on their vehicle, but few set up a system for notifying drivers that it is time to renew the policy. Experts recommend checking your state’s laws or contact information for your insurance carrier or agent to see if you are required to notify them when your coverage is due to expire. Insurance carriers typically send notices about the impending expiration, but it’s up to you to contact them and renew your policy.

7. Not Having Comprehensive Coverage

Comprehensive coverage applies if your vehicle is stolen or damaged as a result of some other incident (i.e., falling objects such as hail or fire). To make sure you are covered, experts recommend buying comprehensive coverage.

8. Not Understanding How Insurance Deductibles Work

Your deductible amount applies to every claim you file, not for each accident you are involved in. For example, if your deductible is $500 and you cause an accident which results in damages of $800, your car insurance policy will only pay up to the state-required minimum amount of $100,000. You will then be responsible for paying the remaining $700 out-of-pocket.

9. Not Understanding Your Policy and What it Covers

Before buying a car insurance policy, experts recommend reading through your policy’s terms and conditions as well as asking your agent as many questions as you need to understand exactly what is covered. If you are unclear about certain terms or how the policy works, you should ask your agent to explain it simply for you before buying it.

10. Not Looking at Other Options to Find Cheaper Coverage

There are several ways to find cheaper car insurance rates that can save you money on premiums while still offering coverage that meets your needs. For example, you can look online to see which insurance carriers are offering the cheapest rates in your area. You may also be able to save some money by lowering your annual mileage or choosing a cheaper vehicle model. For more information on how to find lower premiums, contact an agent at your local insurance carrier today.

What is a deductible?

A deductible is an amount of money you must pay out-of-pocket toward a claim before your car insurance kicks in. The higher the deductible, the lower your premium will be.

How much can I save when I shop around for car insurance?

There are several ways to find cheaper car insurance rates that can save you money on premiums while still offering coverage that meets your needs. For example, you can look online to see which insurance carriers are offering the cheapest rates in your area. You may also be able to save some money by lowering your annual mileage or choosing a cheaper vehicle model. For more information on how to find lower premiums, contact an agent at your local insurance carrier today.

How do I report an accident to my insurance carrier?

If there are any witnesses to the accident, make sure they give you their information and keep a record of all names. In most cases, police who respond to an accident will ask for drivers’ license numbers and contact information. Your car insurance carrier should also provide instructions on how to report your claim once you have been in an accident.

What is comprehensive coverage?

Comprehensive coverage applies if your vehicle is stolen or damaged as a result of some other incident (i.e., falling objects such as hail or fire). To make sure you are covered, experts recommend buying comprehensive coverage.

How long do I have to notify my insurance carrier that I need to renew my policy?

Most states require drivers to maintain liability insurance on their vehicle, but few set up a system for notifying drivers that it is time to renew the policy. Experts recommend checking your state’s laws or contact information for your insurance carrier or agent to see if you are required to notify them when your coverage is due to expire. Insurance carriers typically send notices about the impending expiration, but it’s up to you to contact them and renew your policy.

How can I get discounts on my insurance premiums?

Discounts are available for features such as alarm systems, anti-theft devices and taking a safe driving course. Taking advantage of these discounts can help you save money on your premium costs.

For The Most Part

I hope you found this article helpful and can avoid these mistakes so that you can get the best value for your insurance. If we missed anything, let us know in the comments below and share what other topics or questions about supermini car insurance interest you!

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