
These Small Car Insurance Mistakes Can be Really Costly in the Long Run

Are you wondering why your car insurance premium keeps on increasing every time you renew your policy? The insurance experts say it may have something to do with your lapses. They recommend you stop committing these mistakes to keep your premium rate low.
Policy Lapses

Experts recommend you pay your dues and renew your policy on time to avoid increasing your premium rates
Whenever you fail to pay on time or renew your policy, most insurance companies will conduct an inspection on your vehicle – which contributes to a higher premium rate. Aside from that, most car insurance holders will lose their no-claim bonus benefit if their plan lapses for more than three months. The experts recommend you avoid any policy lapses to keep your insurance premium low.
Incorrect Insured Declared Value
Two crucial factors determine your car insurance premium rate: the vehicle’s value and age. According to the experts, most policyholders commit the mistake of declaring their vehicle value incorrectly to lower their insurance premiums. They don’t recommend you do this because it’ll only increase your premiums in the long run.
Instead, make sure to quote the car’s real value when you bought it. The companies then will calculate your vehicle’s IDV based on its depreciation value up to five years. Meanwhile, if your car is older than five years, its IDV will be calculated based on the current market value.
Claiming No-claim Bonus
Most policyholders are entitled to a no-claim bonus if they don’t make claims caused by minor accidents throughout their policy. According to the experts, your NBC can go as high as 50% if you don’t make claims for five years. However, most policyholders commit the mistake of filing petitions to get more money.

The experts suggest you only file a claim if you get involved in major car accidents where your vehicle needs a major repair
What they don’t know is that car insurance premium increases whenever the NCB resets to zero. Experts recommend that you should be careful while driving to avoid getting into accidents and filing a claim. They also suggest you only file a claim if you’re in dire need of a car renovation.
Availing Too Many Add-Ons

The experts recommend you only avail the add-ons you need for your car to avoid spiking up your premium rates
Aside from paying for the policy’s basic coverage, car owners can opt to avail add-on riders like engine protect. While these riders help protect your vehicles against all sorts of problems or accidents, you may end up paying a higher premium in the long run. The experts suggest you evaluate your car first to determine what riders to get before availing an insurance policy. In this way, you’ll only pay for the plan and add-ons you need.
Not Considering Online Purchase
Most policyholders prefer to hop from one insurance company to another while canvassing for the best deals in the market. While this is an excellent strategy to ensure the best policy coverage, you might end up wasting more money and time in the process. Instead of conducting personal canvas, experts recommend making use of technology to shop for the best car insurance deals online.
More in Advisor
-
`
Celebrity Couples Who Have Ended Their Relationships in 2025
2025 has already seen its fair share of celebrity breakups, and the year is just getting started. From heartfelt announcements to...
February 6, 2025 -
`
How Trump’s Policies Will Reshape Artificial Intelligence in the U.S.
The United States witnessed a significant political shift as Donald Trump took the presidential oath once again. His return to the...
January 31, 2025 -
`
Millie Bobby Brown Shuts Down Age-Shamers with a Powerful Message
From the moment Millie Bobby Brown first appeared as Eleven in “Stranger Things,” she captured hearts worldwide. But growing up in...
January 25, 2025 -
`
Why Outsourcing Payroll Services Is a Smart Business Move
Managing payroll is no small task—it’s a crucial part of any business that ensures employees are paid accurately and on time....
January 15, 2025 -
`
These AI Stocks Should Be on the Watch List of Investors in 2025
The buzz around AI stocks is growing louder than ever. With artificial intelligence shaping industries like healthcare, finance, and tech, smart...
January 8, 2025 -
`
Why the Starbucks Workers Strike Is Expanding Across U.S. Cities
The Starbucks workers’ strike has gained significant momentum, with employees in more U.S. cities joining the movement to address unresolved issues...
January 2, 2025 -
`
Are Shawn Mendes and Camila Cabello Still Close After Breakup?
The connection between Shawn Mendes and Camila Cabello continues to intrigue fans worldwide. Their shared history, from chart-topping collaborations to a...
December 24, 2024 -
`
Here’s What It Takes to Become a Professional Physical Therapist
Physical therapy is a career that blends science, empathy, and problem-solving to help people recover from injuries or improve mobility. Knowing...
December 19, 2024 -
`
GM Battery Cell Plant Deal Marks $1 Billion Ownership Shift
General Motors (GM) plans to sell its stake in a $2.6 billion electric vehicle battery cell plant in Lansing, Michigan. This...
December 11, 2024
You must be logged in to post a comment Login