These days, everyone owns a car because it provides lots of convenience. But, while purchasing the car it is important to purchase insurance policy so that in case of auto accident you can get the compensation from Insurance Company. If your car has been stolen then also coverage will be provided to you. Car owner has to pay annual premium to the insurance company and later on insurance company will cover your losses. There are some people who prefer to purchase the car from car dealer so, owner of the vehicle gets car dealer insurance. In most of the countries it is illegal to drive around without insurance. But, there are some people who do mistake while insuring their vehicle. Mistakes can become bigger later on which will only create headache. They have to consider the important factors while purchasing car insurance.
Here is a list of some insurance mistakes which can be very costly.
- If your employees are driving your car for the purpose of business and if they have met with an car accident then you will be dragged into lawsuit. Your legal expenses will be handled by the coverage when third party sue you.
- Most of the times, people buy cheap insurance but it is important to make sure that insurance company will cover your major loss or not. If not then you will face financial loss. There are some other mistakes which people make like paying too much insurance, use different types of insurance agencies, etc.
Choose additional coverage
Additional financial protection will be provided by choosing additional coverage. You will have to pay lower monthly payment if you choose higher deductible. Higher monthly payment will be paid if you will choose lower deductible. Therefore, always choose according to your requirement. Used car dealer insurance is also purchased when people buy used car.
Pay premium depending on how far you drive
If you are driving for business purpose to a long distance then, you should pay large amount of premium to cover your future accident loss.