Choosing A Better Insurance Plan

4 Mistakes To Avoid When Applying For Auto Insurance

by Isabella Torres

When you apply for auto insurance with an insurance company, it is important to get your application right. The insurance company uses the information on your application to provide you with a premium quote. If you provide inaccurate information, your insurance could be invalidated or canceled, leaving you without the insurance you need. When filling out your information when applying for auto insurance, there are a few classic mistakes you want to avoid.

Mistake #1: Not Listing All Drivers

One of the biggest mistakes people make is not listing all drivers on the application. If there is someone who drives your vehicle on a continuous basis, outside of an emergency, you need to make sure they are listed on your policy.

If another driver gets into an accident, and the insurance company finds out they regularly drive your vehicle, and you didn't list them on your policy, your coverage may not apply, and you could even lose your insurance coverage entirely.

Mistake #2: Giving the Wrong Address

Second, when you apply for vehicle insurance, you are going to be asked where you typically keep your vehicle at night. You need to make sure you report the true location of where you keep your vehicle. If you live at two different locations, include that information.

Insurance companies use your address to determine the level of risk to your vehicle. Giving the wrong address can jeopardize your coverage statues.

Mistake #3: Being Dishonest About Your Driving Record

Third, your insurance company is going to research your driving record. They are also going to ask you to self-report your driving record.

Be honest about your driving record. Failing to include a ticket or an accident, if your insurance finds out about it later, can result in rate increases and even you losing your insurance coverage.

Mistake #4: Not Being Honest About Business Usage

Insurance rates are different for residential usage then they are for business usage. If you decide to take on a big job, such as rideshare or delivering groceries, you need to update your information with your insurance company.

If you use your vehicle for business purposes on a regular basis, you are going to need additional coverage. An accident caused when using your vehicle for business purposes may not be covered by your policy.

When it comes to applying for insurance coverage, be honest. Disclose who drives the vehicle, where you live, and the details of your driving record. If you use your vehicle for business, check and see if you need additional specialized coverage. It is important to be honest about these elements, as failing, to be honest, could result in changes to your premium, or to your coverage being dropped or invalidated. 

Stear away from these common mistakes, and you can get the perfect auto insurance for your needs.