Mistakes to avoid when buying auto insurance

by bhs-ahEditor November 20, 2025

Auto insurance is not just a legal requirement, but also an important safeguard against financial risks while driving. Many people, however, make mistakes when buying auto insurance that can lead to higher costs or less coverage than they actually need. Understanding common errors can help you avoid them and choose the best policy for your circumstances. Here are several mistakes to avoid when purchasing auto insurance.

Not Comparing Multiple Quotes

One common mistake is settling for the first insurance quote you receive. Prices and coverage can vary greatly between insurance companies. By comparing quotes from several providers, you can find better deals and coverage options. Take your time to shop around online or contact agents to make sure you are getting the most value for your money.

Overlooking Coverage Details

Sometimes drivers only focus on the price and ignore the coverage details. It’s important to know what your policy truly covers. Make sure you understand the limits for liability, collision, comprehensive, and uninsured motorist coverage. If you don’t check these details, you might not be properly protected in certain situations.

Picking a Low Deductible Without Consideration

While a low deductible might seem desirable because you would pay less out of pocket after a claim, it usually means higher monthly premiums. Consider what you can realistically afford to pay if there is an accident. Sometimes, opting for a higher deductible can save money in the long run.

Forgetting to Ask About Discounts

Insurers may offer many discounts that can lower your premium. These can include safe driver discounts, bundling policies, student discounts, or even discounts for installing safety devices in your car. Ask each provider about available discounts—sometimes they’re not automatically added unless you ask.

Not Reviewing Your Policy Annually

Situations change over time. Maybe you have a different car, have moved, or your driving habits have changed. Many people buy insurance and forget about it, but reviewing your policy every year can ensure you still have the right coverage at the best price.

Failing to Provide Accurate Information

Providing incorrect or incomplete information about your driving history, car use, or location can lead to problems down the line. Not only can it affect your rates, but it might lead to denied claims. Always be truthful and check your application before submitting.

Ignoring Customer Service and Reputation

The cheapest policy may not always be the best one if the company has poor customer service or a confusing claim process. Check reviews and ratings online to make sure you’re dealing with a reliable insurer who will help out when you need it most. Buying auto insurance doesn’t have to be stressful—but knowing what mistakes to avoid makes all the difference. Take your time to research, ask questions, and review your options carefully so you can drive with confidence, knowing you are protected by the right insurance policy.