When searching for a cheap auto insurance company, some people make the
mistakes that cost them more money in the long run. By checking through
these mistakes, you can avoid making one that costs you more money than
you save.

1.    Dropping Liability

Depending
on how you do business with your insurance company, an agent might not
be the most helpful in determining how to change your policy to make you
happy if you have a problem. Many agents will just do as you ask
without explaining the implications of your choice so you can make a
more informed decision.

One way many people think they can make
their cheap auto insurance company lower its rates is to drop their
Bodily Injury Liability (BI). After all, it seems to make sense if you
have $100,000 per person coverage and you drop it to half that at
$50,000 you should get a much cheaper rate, right? Wrong!

If you
have your agent print you out a comparison of your current premium with
the $100k and then your quote with $50k, you might be shocked to learn
you either will save no money or very little money depending on your
particular situation. If you have a pretty decent driving record and you
have kept your liability high for quite some time, reducing the
liability will not help you.

In addition to not really saving
you money on your monthly bill, you will be exposed to a much greater
risk if you or someone in your household accidentally hit someone and
the other people had severe injuries. Even if you weren’t driving, as an
owner of the vehicle, you could be sued for all damages and injury over
what your insurance won’t cover. A cheap auto insurance company is not
nearly as important as a helpful insurance company.

2.    Removing Drivers…When They Still Live With You

Sometimes
people think they can sneak around the system and take teenage drivers
off their policy to save themselves some money. This could backfire in
ways that will cost you far more than the cost to insure.

Even
if you have made an effort to keep your teen drivers away from your car,
they still have access to it. While you hope you raised them right and
they won’t do something stupid behind your back, that’s not a good
enough reason to switch to a cheap auto insurance company without them
listed.

If your teenager gets a wild hair and decides to sneak
out of the house with your keys and take the car to a party, the
repercussions are endless. If your teen hits someone while drunk driving
or if they have other teens in the car and they are killed or injured,
any number of things could happen. If it does, your cheap auto insurance
company will probably cover nothing. In order to remove a teen driver,
an insurance company will often require a signed exclusion form that
will exclude all your coverage if your teen has an accident in the car
you insure.

Don’t sacrifice valuable coverage just for a cheap
rate. Your financial health is at stake. Be sure you are properly
insured and all drivers covered. Talk to your agent or cheap auto
insurance company to find other ways to save money.