Avoiding Car Insurance Policy Scams for the First-Time Driver: 5 Tips

Posted on 28 March 2017 by Tony Santos

When you start driving and buy your first car, one of the most important decisions you will make is which car insurance company you will buy your policy from. From television to the internet, there are ads that promise you car insurance for literally pennies a day. Some of these promises may sound too good to be true. Before you shop around for car insurance companies and basic policies, there are a few facts you should know so that you can avoid being taken by an inferior or dishonest company.


1.     Ask for Advice from Experienced Drivers


One of the easiest ways to ensure that you get quality coverage is to go with the company that your parents and family have trusted for years. While you may think that because you are a first-time driver, you need to break away and find your own agent. However, your inexperience with car insurance may cause you to choose poorly. By going with an agent that your family trusts, you do not have to worry about whether they are legitimate.


2.     Read Online Reviews


While some ads on television may offer insurance for what seems like a low monthly fee, there are often hidden fees that a company may not tell you about up front. To avoid being scammed, you may want to do a little bit of detective work before deciding which insurance company to sign with. Do an internet search and see what others have said about them on company review sites. If a company has been flagged by independent consumer report sites more than once or a number of people have lodged complaints against it, you may want to steer clear.


3.     Cheap Coverage Is Not Always Good Coverage


Some companies might seem to have amazing rates, but before you sign up, you should read the fine print. Cheap car insurance may save you on your premiums, but if you are involved in an accident, it may not give you the type of coverage you need. As such, you might end up paying hundreds more than necessary in both your deductible and compensation to the other driver, especially if you were at fault.


Knowing as much as you can about a policy before committing to it is one of the most effective ways to avoid getting taken. If you are unfamiliar about certain types of coverage, such as the difference between collision and liability, you may want to ask a local independent car insurance agent to go over potential polices with you.


4.     Take Time to Compare Rates


Comparing cheap car insurance rates is another way to avoid being scammed by less-than-reputable companies. Before you decide on what company to use, take a few days and compare rates side by side to see which companies can offer you the most coverage at the lowest rate. Consider using a website like www.carinsurancecheap.net to help you narrow down your choices.


5.     Look into Discount Details


When you take the time to compare car insurance companies, not only can you avoid getting scammed by coverage that is not all it claims to be, you may also want to look into driving discount details to ensure they can indeed save you money. For example, you can save money on car insurance if you choose a company that offers a safe driving discount through via monitoring devices you carry in your vehicle, but it is important to understand how they work first.


If you are unfamiliar with car monitoring devices, you should know that the idea behind them is quite simple. These small plug-in gadgets monitor how far you travel each day, your braking habits, and other kinds of data. The safer your habits are, the bigger the discount you can earn. Therefore, if you focus on driving safely every day, this can be a path to significant savings on your car insurance premiums.


While choosing a car insurance company may not seem like an important decision at first, if you choose poorly, it can end up costing you time and a great deal of money down the road. Before you choose, take your time and do some comparison shopping. This way, you may avoid getting scammed while you shop for cheap car insurance and ensure that you get a cost-effective policy that will protect both you and other drivers while you are on the road.


Categorized | Car Insurance

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