The Most Common Car Insurance Mistakes To Avoid

Car insurance is not just a legal requirement in most states—it’s also essential protection for your finances and peace of mind. But despite its importance, many drivers make mistakes that can lead to higher premiums, denied claims, or gaps in coverage.
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To help you steer clear of these pitfalls, here are the most common car insurance mistakes—and how to avoid them.

1. Choosing the Cheapest Policy Without Understanding the Coverage
While low premiums are appealing, cheaper policies often come with:

• Higher deductibles
• Limited coverage (which could leave you underinsured)
• Exclusions that may not meet your specific needs

Tip: Always compare policies not just by price, but by what they cover, including liability limits, uninsured motorist coverage, and comprehensive/collision protection.


2. Skipping Comprehensive and Collision Coverage
If your vehicle is financed or relatively new, skipping comprehensive and collision coverage can leave you on the hook for expensive repairs or replacement costs due to:

• Accidents
• Theft
• Vandalism
• Natural disasters

Tip: Consider full coverage if your car has significant value or if you rely on it daily.


3. Failing to Update Policy Information
Life changes, and so should your insurance policy. Common updates that drivers forget to report:

• New address
• Vehicle usage (e.g., commuting vs. pleasure)
• Changes in drivers (e.g., adding/removing family members)

Tip: Notify your insurer of any changes to ensure your coverage remains valid and accurately priced.


4. Not Listing All Drivers
Leaving out regular drivers (like a spouse or teen) can backfire if they’re involved in an accident and not officially covered under your policy.

Tip: Be transparent about who drives your vehicle to avoid denied claims and potential fraud accusations.


5. Letting Your Policy Lapse
A lapse in coverage—even for a few days—can:

• Increase future premiums
• Leave you uninsured and financially vulnerable
• Result in legal penalties depending on your state

Tip: Set up auto-pay or calendar reminders to ensure timely payments and continuous coverage.


6. Carrying Only the Minimum Legal Coverage
Minimum liability limits may not be enough to cover damages in a serious accident. If you’re underinsured, you’ll have to pay the difference out of pocket.

Tip: Consider raising your limits for liability, and add umbrella coverage if you have substantial assets to protect.


7. Not Documenting Accidents Properly
Failing to collect information at the scene of an accident can delay or jeopardize your claim.

Tip: Always:

• Take photos of all vehicles involved
• Exchange info with other drivers
• File a police report if necessary
• Notify your insurer immediately

8. Failing to Understand Deductibes
Choosing a high deductible can lower your monthly premium—but make sure it’s an amount you can afford to pay out-of-pocket after an accident.

Tip: Strike a balance between premium savings and financial preparedness.


9. Not Asking About Discounts
Many drivers miss out on easy savings. Common discounts include:

• Safe driver
• Good student
• Multi-policy bundling
• Anti-theft devices
• Low mileage

Tip: Ask your agent what discounts you qualify for—you might be surprised at how much you can save.


Final Thoughts
Car insurance is more than just a legal requirement—it’s financial protection that deserves your attention. By avoiding these common mistakes, you can ensure better coverage, lower costs, and peace of mind on the road.


At Arnold Insurance Agency, LLC, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (318) 965-5953 or CLICK HERE to request a free quote.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.