Top Car Insurance Mistakes To Avoid
We are all prone to mistakes. But some mistakes are bigger than others and you should do your best to avoid them. When talking about car insurance, the list of potential mistakes is huge. If you do not want to have your policy voided, avoid doing the next mistakes. Also, instead of lying and hiding things, in hope of better prices, you should check how to get car insurance quotes online and compare prices.
- Forgetting to tell your company about your newly licensed teen driver. Not telling your insurance provider that your teen kid is now able to drive is a big mistake. Keep in mind that insurance companies take into consideration all residents when calculating premiums. Having a licensed resident and not telling about this will seriously lower the trust of the insurer. They can either accept the teen and increase the premiums or totally drop you.
- Letting an undisclosed person drive your car. This is strictly correlated with the first point. Let’s assume that your teen kid is allowed to drive your car. Remember that he or she is not added to any insurance policy. What happens if the teen causes and accident? It depends on the company if they will cover the accident and charge you significantly more or they will drop you. Failure to inform the company about other people driving your car is called misrepresentation and it is a form of insurance fraud.
- You sold the car, but you still pay for car insurance. This is a silly and costly mistake. Always inform your company about ownership change.
- You use a personal vehicle to run businesses or to transport people (for a fee, of course). Personal coverage excludes vehicles from being used for business purpose. If you are involved in an accident while using it for business purpose, your claims are likely to be denied by your insurer.
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