4 Mistakes To Avoid When Buying An Insurance Cover

Every car owner knows that he/she needs an insurance policy. Unfortunately, studies show that many people make mistakes when they are buying their policies. The most common mistakes include:

Buying the wrong policy

This is a mistake that is common with many first-time insurance buyers who don’t understand their needs. There are many insurance policies that you can go for. The most common being: comprehensive, third party, third party fire, and theft insurance policies. Each policy has its pros and cons. For example, while the third party policy is cheap, it’s very basic and will only cover the damage that you cause to other people’s property. It can’t cover you. The fully comprehensive cover, on the other hand, is expensive but it will cover both you and a third party.

To buy the right cover you need to understand your needs. If you want a cover that will protect only the damage that you cause to other people, you should go for the basic cover but if looking for a policy that will provide you even with roadside assistance in the event your car breaks down, you should go for the comprehensive cover.

Buying from the wrong company

Just as there are many insurance policies, there are equally many insurance companies that you can buy your policies from. Many people buy policies based on one factor-the price charged by the company. This is wrong. An insurance company is more than the price it charges. A good company should have a solid reputation. It also should offer you spectacular customer service. For you to buy a policy from the right company you should take your time doing your research. You should shop around and settle on a company offering the best service at least cost.

Buying the bare minimum policy

Insurance policies come in different categories and levels. The minimum level is the least that you can get away with. While the minimum policy can cover you without any problem, you will be in problems in the event you cause damage larger than what can be covered by the policy. Such a problem can ruin your financial situation. To be on the safe side you should get a cover that is larger than the minimum required by law. This way you will have protected yourself in the event of extensive damage.

Overpaying your insurance policy

While you should protect yourself and your car from danger, you shouldn’t overpay for your car premiums. The insurance premiums vary depending on the type of car, the length of time that you are getting the policy and many other factors. When you are making the purchase, you shouldn’t go at it blindly as you will end up losing a lot of money. You should first speak to professional insurance agents and they will tell you the maximum amount that you should pay for your car.


These are the mistakes that you should avoid making when you are buying an insurance policy. To avoid complications, always pay your premiums on time.