Buying auto insurance can be tricky business. If you think you’ve hit jackpot with finding the cheapest car insurance, you might want to reconsider. Don’t convince yourself into believing that cheap car insurance is the best way to go. Remember, haste makes waste. And you don’t want to find out the hard way that you’ve signed on with a company that has a history of poor customer service, or worse, you haven’t bought enough coverage to adequately protect your assets. Try to avoid these mistakes at all costs:

Not shopping around for multiple quotes

Why should you shop around? Because companies offer competitive auto insurance rates, attractive discounts and schemes that might considerably lower your premium costs. And since you want to make sure you get the best deal, your best bet is to approach at least 3-4 car insurance companies for rates.

Not reviewing a policy on an annual basis

If you’ve already signed on with an insurance company, it’s important to review your policy on an annual basis just to make sure you still have a policy best suited for your requirements. However, some people go ahead with annual renewals without reviewing their policy; no questions asked. The problem with this is that car insurance premiums might change with certain changes that take place in your life (marriage, divorce, retirement, adding teenaged kids to your policy etc). It’s a good idea to inform your company of these occurrences as they happen to make sure you still have the best deal from them.

Not getting enough coverage

While minimum liability coverage is required by law, there’s no telling if it will be enough in some situations. It’s important for you to have an understanding of your assets and the amount of financial risk involved should you meet with a serious accident. Your insurance should be able to cover the assets you wish to protect.

Lying on your application

A BIG mistake; one to be avoided under all circumstances. You might lie about the miles you put in one your car or where you park it at night etc. Just remember that while this could get you quick discounts, there’s a good chance your lies will get found and that could put your coverage in jeopardy.

Buying home and car insurance from 2 different insurers

Most auto insurance companies offer discounts to customers who buy multiple policies from their company. Instead of buying home and car insurance policies from 2 different insurers, find out if your car insurance company also offers car and homeowners insurance.

Not bothering to read reviews

Reading reviews about a car insurance company is the best way to find out about the company’s customer service, any complaints that people might have with them, where people think the company stands out etc.