The Most Common Mistake When Starting a New Car Insurance Policy According to Kelley Blue Book
Aleena Juarez
· 3 min read
People tend to focus more on buying the car than getting
car insurance
. It's easy to get caught up in savvy talk from car salesmen, and the vision of driving around a cool new car. But, knowing what type of insurance
you need is just as important as shopping for your car.You probably don’t want to pay for coverage that’s more than your car is worth, but you also don’t want to be underinsured. While paying more than you planned is far from ideal, not having the coverage you need when something unexpected happens is even worse.
Kelley Blue Book
(KBB) said that the most common mistake is not knowing what insurance coverage you need. Here’s what you need to know when you’re shopping for car insurance.
Why should you try to learn more about car insurance?
You don’t want to only rely on agents to tell you what car insurance policy you need. At the end of the day, insurance companies are trying to sell their policies and they’re looking out for their company interests as well.
There's a lot to learn about car insurance. That's why many agents must have a four-year degree and are required to get a license before they can work. You don’t need to know everything about car insurance, but it’s helpful to have some basic policy knowledge so you can make informed decisions.
Let Jerry find your price in only 45 seconds
No spam · No long forms · No fees
How to decide what coverage you need
MORE: 2 Illegal Factors Your Car Insurance Company Can't Consider
The type, model, price of your vehicle, and other factors related to your driving experience will all impact the kind of protection you need. For example, if you're looking at insuring a
classic car
, standard car insurance might not cover the real value of the vehicle. Typically, insurance costs will be higher for more expensive vehicles. Teenagers and drivers under 25 will also usually have to pay more for insurance.
How much you drive will matter as well. If you don't spend that much time behind the wheel, some insurance agencies might be willing to drop your rates. There's no guarantee, but it's always worth asking for any available
insurance discounts
. Knowing what coverage you need will help you find a good balance between cost and coverage, as mentioned by KBB.
Comprehensive
and collision insurance
will give you decent coverage, but be sure to look into any additional policies that might suit your needs better. You can always talk to an agent if you’re unsure about the options.Other factors that impact your car insurance costs
If you call the big city home, you'll likely face big city prices. More traffic in an area means a higher risk of accidents, and as a result, increased car insurance costs. Just because you're a safe driver, it doesn't mean everyone else on the road is.
According to
How Stuff Works
, population density, weather, crime rates, and how the roadways are maintained can all affect your car insurance rate. There are a lot of factors to think about when deciding what type of coverage you need. You also want to know that you’re not overpaying for insurance. Let
Jerry
help. Sign up in just 45 seconds, and the free app will take care of all the hard work of comparing rates from top insurance companies. You don’t have to fill out long forms or make any calls to save money on insurance.
