Pity the Fool Who Makes These Common Car Insurance Mistakes

AAA Insurance offers tips on keeping consumers’ policies perfect

Phoenix, April 1, 2013. Pranks and trickery have no place in the insurance world, but even making an honest insurance mistake can cost consumers.

“It’s easy to be fooled by insurance when you don’t have a relationship with a trusted agent,” said Brad Oltmans, vice president of insurance services for AAA Arizona. “Always read your policy’s fine print, and work with a trusted and reputable insurance agency to make sure mistakes aren’t made and you understand your coverages.”

Here are five things to avoid with auto insurance:

Don’t lie to the car insurance company: Some drivers will lie about who drives their car, what they use the car for and where they keep it to get a lower rate. If the truth comes to light, it could put their coverage in jeopardy. Also, not updating a policy if you move, add drivers or change cars could result in additional problems.

Don’t be clueless: Some people say they have full coverage, but that term means something different for many people. Also, some coverages are not automatically included and need to be added. An agent can advise consumers on their insurance needs.

Don’t drop coverage to save money: Many consumers opt for a deductible as high as $1,000, but they can’t afford it when an crash occurs. Sure, they might save a few dollars in the short term, but if they ever need it, can they afford to pay their share?

Don’t do the bare minimum: According to Arizona law, motorists must carry only liability insurance. When they only buy the minimum insurance requirements, however, they’re putting their entire financial future at risk. Many policyholders also drop collision and comprehensive coverage for older vehicles. But if they can’t afford to pay for costly repairs or buy a new car, it may be more prudent to buy the coverage.

Don’t stay in the dark: Insurance is complex. Don’t wait until you’re in a crash and need to have your insurance agent explain your policy. Go over terms and exclusions ahead of time so there aren’t any surprises and don’t be afraid to ask questions.

AAA Arizona offers automotive, travel, insurance, gas and traffic safety products, tools and resources. To receive a free auto, home or life quote, call 1-866-298-1232 or visit AAA.com/insurance.

AAA Arizona, the Arizona affiliate of AAA, provides automotive, insurance and travel services to more than 825,000 Arizona members. Annually, AAA’s Roadside Assistance responds to more than 450,000 calls for help on Arizona roadways. The auto club also provides insurance, travel, auto repair, discounts and financial services to AAA members. Since its founding in 1927, AAA Arizona has been a leading advocate for the safety and security of all travelers.