There are many mistakes that we need to consider to avoid:
- We are too faithful: Yes, it is quite possible that the insurance company will give us loyalty discounts for the couple of decades we have stuck with them. In fact, we may already build a social relationship with the insurance representative. If we have become too comfortable, we may not want to look for other providers. The insurer may consider us as cash cow and they also become complacent. In this situation, we should play the field! It won’t hurt to look for free car insurance quotes and it is possible that we will eventually find better ones.
- We want sports cars: Some people are affected by mid-life crisis and suddenly want sports cars. Somehow, they are finally be able to purchase something that leave both men and women gaping. After the crisis has passed, we may be surprised to know what we need to deal with exorbitant rates. It is also quite unfortunate that expensive cars attract the attention of thieves. They may not be dumb enough to drive away with the car, but they could still rip out those expensive electronics equipments from inside the cabin. If we don’t want to pay excessive premiums, it is a good idea to avoid buying expensive cars.
- We are not cautious: If we are not careful, we will need to be prepared to pay the astronomical rates. By being safe, we will be able to lower our interests. We could install anti-theft devices and air bags, to obtain discounts. We will definitely lose out if we throw caution to the wind.
- We live in bad neighbourhood: Many people are unlucky enough to get trapped in bad neighbourhood, but others choose this location to purchase cheaper houses. Chances are high that we will need to deal with higher insurance rates. Living in a bad neighbourhood could increase the possibilities that our car will be stolen and vandalized. There are only three solutions, deal with the exorbitant rates, add plenty of security equipments or move to other location.
- We did fraudulent tactics: If we have been charged with past insurance fraud, we will be in a very difficult situation. Many insurers will reject us and the government itself slaps really serious penalties on us. If it happens to us, we need to have full disclosure with our car insurance provider. It will take a few years to regain part of our reputation and we need to continue become ideal insurance consumers.
- We never pay attention to our credit: Credit rating can be kept at acceptable level if we continue to make payments on time. Our credit scores have direct effects on our insurance quotes. In this situation, we will need to live within our means. This will allow us to pay our mortgage, credit card bills and others.
Despite all these situations, the good thing is that people can actually change. We should know what we should do and how to become a much better person.