When you purchase a car from our buy here, pay here car dealership in Oklahoma City, you’re guaranteed to get a good deal and a reliable vehicle. However, we frequently see people who lose the benefits of a great new car by adding it to a poor insurance policy. There are a number of mistakes that people make when insurance shopping that can cost extra money and time.
Mistake 1: Deductibles that are Too Low
The deductible is the amount you must pay out-of-pocket when you are involved in an accident or file a claim. That must mean a low deductible is a good thing, right? Not always. Even though having a lower deductible might seem like an advantage when you’re in an accident, you pay for it with higher overall rates on your liability and collision coverage. Customers that raise their deductible from $250 to $500 or $1000 can save as much as 40% on their regular payments.
Mistake 2: Low Liability Limits
The total amount of damages you are insured for is known as your liability coverage. Generally, a higher liability policy costs more than one with less coverage. However, opting for a low level of coverage could have negative effects. First, if your car is damaged in an accident, your liability coverage might not be enough to cover your repairs. Second, if you damage another car or cause injuries to other people, your liability coverage might not cover the damages. In the second case, courts can place liens or seize assets to pay the difference.
Mistake 3: Not Shopping Around
When you add a new car to your policy or renew with your insurance company, you should always take a few minutes to do some comparison shopping. Many customers are surprised to find that their rates can go down by several hundred dollars when they switch insurance carriers. However, if you do find a good deal, do your research and make sure that your coverage is the same, and that the carrier doesn’t have lots of complaints from other customers.
Mistake 4: Filing Too Many Claims
You should always file a claim with your insurance for a major accident or one that involves another vehicle. However, if you’re involved in a single-car accident (such as backing into a tree or pole, or hitting a deep pothole) it might be a good idea to avoid filing a claim. If you file too often, your rates will increase, sometimes dramatically. And if the damage to your car is less than your deductible, there’s really no point to filing anyway. Save the money and the hassle.
Mistake 5: Not Asking for Discounts
If you haven’t filed a claim in a long time, don’t drive often, or have multiple cars on your policy, you might qualify for insurance rate discounts that you didn’t even know about. Many insurance carriers provide discounts for things like a safe driving record, completing a vehicle safety course or driver’s ed class, driving a low number of miles each year, or even having a vehicle with advanced safety or security features. Ask your insurance agent or provider if there are any discounts you might qualify for to start saving.
If you’re looking for a new car to try some of these insurance tips on, come to The KEY in Oklahoma City! We’re the OKC metro’s number one buy here, pay here car dealership, and we have a huge variety of vehicles to choose from. You can get pre-qualified in just 39 seconds in person or online, or you can follow us on Facebook for special news and updates.
