5 Mistakes to Avoid When Buying Car Insurance by Liberty General Insurance

When it comes to safeguarding your vehicle and financial security, buying the right car insurance policy is of significant importance. But, you can often make critical mistakes during the buying process that can lead to undesirable outcomes. We, at Liberty General Insurance, want you to avoid making such mistakes and ensure that you buy a suitable new car insurance policy that covers your needs.

Here are the top five mistakes to avoid when purchasing a new car insurance policy, to ensure you get the best coverage and value for your money:

1. Settling with A Low Coverage Insurance

   One of the most significant mistakes you could make is opting for a policy with inadequate coverage. While a low-cost insurance policy may seem appealing, it might not provide the comprehensive protection your vehicle needs. In case of an accident or damage to your car, a policy with low coverage limits can leave you with substantial out-of-pocket expenses. Instead, it's essential to assess your specific needs, including your vehicle's value, driving habits and geographical location, and choose an insurance policy that offers sufficient coverage to protect you from unforeseen events.

2. Not Checking Available Car Insurance Policy Online

   With the rapid advancement of technology, purchasing car insurance has become more convenient than ever. However, some policyholders still miss out on exploring the vast array of online insurance policies available. Online platforms offer a transparent and user-friendly interface, allowing you to compare different plans, benefits and premiums from the comfort of your home. By not considering car insurance policy online, you may miss out on potential cost savings and policy features that could better suit your requirements.

   We have car insurance policies that you can buy online. Explore the benefits of buying a car insurance policy online at Liberty General Insurance.

3. Hiding Information or Providing Incorrect Information

   When buying car insurance, honesty is the best policy. Some individuals make the mistake of providing incorrect or incomplete information to the insurer to obtain a lower premium. However, this can have severe consequences during the claims process. If the insurance company discovers any discrepancies or false information, your claim may be denied, leading to financial losses and potential legal consequences.

4. Not Managing the No-Claim Bonus Correctly

   The no-claim bonus is a reward provided to policyholders for not making any claims during their policy period. It can significantly reduce your insurance premium upon renewal. However, some car owners fail to manage this bonus properly, resulting in its loss. Even a single claim can reset your no-claim bonus to zero, erasing the accumulated benefits over time. If you are eligible for a no-claim bonus, be cautious while deciding whether to claim minor damages, as it could lead to a loss of this valuable discount.

5. Not Renewing Before Policy Due Date

   Allowing your car insurance policy to lapse by not renewing it before the due date is an unfortunate mistake that can expose you to significant risks. A lapsed policy means zero coverage and could lead to legal penalties if you are caught driving without insurance. Also, remember that a lapsed policy may also result in the loss of your accumulated no-claim bonus. To avoid these problems, set reminders for your policy renewal and initiate the process well before the expiration date.

Buying car insurance is a crucial decision that requires careful consideration to protect your valuable asset and ensure financial security. By avoiding common mistakes, you can make a well-informed choice when purchasing car insurance. Also, read our blog on How to Save Time & Money Buying Car Insurance Online before you decide to buy a new car insurance policy online or offline.

At Liberty General Insurance, we are committed to providing the best insurance solutions tailored to your needs. Remember, the right policy not only offers peace of mind but also saves you from unnecessary expenses in the long run. Drive safe and stay protected!