So, you’re ready to get new auto insurance. What do you do? Naturally, you get a few quotes from your favorite agent or go online to a website promising to get you the lowest prices. Unfortunately, I found as an insurance specialist, even this exercise – for smart people like you – is often a waste of energy. Here’s three reasons why . . .
Reason #1: Details about your driving record are missing.
If you have noticed, most insurance quotes require limited information about your past driving history. Yet, any fool understands that the number of tickets and accidents on your plate GREATLY effect the amount you pay for auto insurance. This data is dug up AFTER you obtain an auto insurance quote and sign up with an insurer. Then, the real amount of your premium comes to light or sometimes you’re even denied coverage.
Reason #2: You probably are slightly ignorant about your car’s features.
Sure, you’re aware of whether or not your car gets good gas mileage and can comfortably fit your family of four. However, you probably don’t know how it rates with the National Highway Traffic Safety Administration (NHTSA) or whether or not the safety features on the vehicle matter to an insurance company. These two factors affect what you pay to an insurance company for protection. Unfortunately, they are often not taken into full consideration during an insurance quote.
Reason #3: Auto insurance quotes are only estimates, not final costs.
As a consumer, this truth is apparent based on the disclaimers in small print when you obtain an auto insurance quote. For this reason alone, you should understand the bottom line is subject to change. Until everything about you and your vehicle is taken into consideration, you can’t believe the ‘magic’ number given to you as a future premium. Your best bet is to think of an auto insurance quote as an estimate of what you may pay for car insurance in the future.
The above are three reasons why you should take auto insurance quotes lightly. Use them as guidelines – a way to get an idea of what you’ll pay after signing up with a new insurance carrier. For more information on related topics, see Myths about Claims Insurance Adjusters and Keep Insurance Rates Low for Your Teen.