Common Auto Insurance Mistakes
Auto insurance is something most drivers know they need, but that doesn’t always mean they fully understand their coverage. It’s easy to choose a policy, make your payments, and forget about it until an accident happens. Unfortunately, that’s often when drivers discover that their coverage isn’t quite what they thought it was.
You can help protect both your vehicle and your finances by avoiding just a few of the most common mistakes some people make with auto insurance.
1. Choosing Coverage Based Only on Price
Everyone wants to save money, but choosing the cheapest auto insurance policy isn’t always the best decision. A lower premium may also mean less protection when you actually need it.
When comparing policies, pay attention to:
- Liability limits
- Collision and comprehensive coverage
- Deductible amounts
- Uninsured and underinsured motorist coverage
- Rental reimbursement
- Roadside assistance
- Coverage exclusions and limitations
Saving a few dollars each month may not be worth it if you end up paying thousands out of pocket after an accident.
2. Forgetting to Update Your Policy
Your insurance needs can change throughout the year. Moving, buying a new vehicle, adding a driver, getting married, changing your commute, or having a child start driving can all affect your policy.
If your insurance company doesn’t have accurate information, you could experience problems when filing a claim or miss opportunities for better coverage or discounts.
Review your policy whenever you experience a major life change.
3. Letting Someone Drive Your Car Without Thinking About Insurance
Letting a friend or family member borrow your car may seem harmless, but it’s important to understand how your insurance could respond if they’re involved in an accident. In many situations, auto insurance follows the vehicle rather than the driver. That means if someone you gave permission to drive your vehicle causes an accident, your auto insurance policy may be the primary coverage used for the claim.
Things can become more complicated if the person regularly drives your vehicle, lives in your household, is specifically excluded from your policy, or does not have their own insurance. Depending on your policy and the circumstances of the accident, there could also be coverage limitations or additional out-of-pocket costs.
Before regularly allowing someone else to drive your vehicle, especially someone who lives in your household, talk with your insurance agent. Making sure all regular drivers are properly disclosed, and your policy is set up correctly can help prevent unexpected coverage issues after an accident.
4. Assuming “Full Coverage” Covers Everything
The term “full coverage” is commonly used, but there technically isn’t one insurance policy that automatically covers every possible situation.
A policy commonly described as full coverage may include:
- Liability coverage
- Collision coverage
- Comprehensive coverage
However, it may not automatically include:
- Rental reimbursement
- Roadside assistance
- Gap coverage
- Custom equipment coverage
- Higher liability limits
- Certain personal belongings inside the vehicle
Instead of simply asking whether you have “full coverage,” ask your agent exactly what your policy includes.
5. Carrying Only the Minimum Liability Limits
Every state has minimum auto insurance requirements, but those limits are often designed to meet legal requirements—not necessarily to fully protect you financially.
If you cause an accident involving multiple vehicles, serious injuries, or expensive property damage, the total cost can add up quickly. Once your insurance reaches its liability limit, any remaining expenses may become your responsibility.
This is especially important today, when vehicle repairs, replacement parts, and medical expenses can be much higher than many drivers expect. Even a relatively common accident could result in costs that exceed a basic policy’s limits.
Choosing higher liability limits can give you an extra layer of protection and help reduce the chance of a large out-of-pocket expense after an accident. It’s worth reviewing your current limits to see whether they still provide enough protection for your needs.
Conclusion
Auto insurance can be easy to overlook until you actually need to use it. Small mistakes like carrying limits that are too low, forgetting to update your policy, or assuming you’re covered for something that can lead to bigger problems after an accident.
Taking the time to review your policy, understand your coverage, and ask questions can help you avoid unexpected costs and make sure your insurance still fits your needs. A quick conversation with your insurance agent can go a long way toward giving you better protection and fewer surprises on the road.
You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog Post written by: Alex Condes
