Continue reading »]]> Reader’s Question:

I was told that parking my car on the street (instead of inside a garage) will make my car insurance rates bigger, is that true? What else could I be doing that’s causing me to pay higher rates?

Ariel

Atlanta, GA

Yes, it is quite possible that you’re paying more on car insurance for leaving your vehicle on the street. This exposes your vehicle to a higher chance of car theft or vandalism. Here are seven other common car insurance mistakes that most people aren’t aware of:

1. Submitting one too Many Claims – too many claims can make you look like a risk driver to your insurer, thus causing them to raise your premiums.

2. Not Understanding Your Policy – Your coverage needs change over time. The value of your vehicle, for example, diminishes over the years so you wouldn’t need to pay for as much comprehensive insurance anymore. Review your coverage periodically.

3. Allowing Their Credit to Slide – those who have excellent credit tend to be responsible drivers. If you let your credit score fall, your insurer might see this as a reason to raise your rates.

4. Not Knowing About Discounts – discounts are an easy way to get budget car insurance, so not knowing about them is a major disadvantage on your end. Ask your insurer about discounts options to see which one you’re eligible for.

5. Getting the Lowest Deductible Possible – The bigger the deductible you get, the lower your premiums become. As long as you don’t raise it too much to prevent you from filing a claim when you do need to then you should be OK.

6. Buying Only the State Minimum Coverage Requirements – When it comes to liability coverage, get as much as you can. You can easily be sued for far more money than the state minimums if you cause a car accident.

7. Not Comparing Rates – with the many car insurance comparison websites (like this one) offering free quotes, it only takes a minute to compare the cheapest rates from lots of different insurers. This maximizes your chance of getting the best deals.