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7 Mistakes to Avoid When Comparing Car Insurance Quotes

August 11, 2022 Auto Insurance

If you’re comparing quotes from several different car insurance companies, you may need some help figuring out what kind of coverage you need and how to balance premiums within your budget. Avoid the common mistakes listed below when shopping for your best car insurance comparison quote.

1. Missing Out on Discounts

When trying to compare car insurance rates, it can be frustrating trying to keep track of which discounts each insurance company offers. For example, suppose you already have a homeowner’s insurance policy with Progressive or State Farm. You might find that bundling your car insurance with your existing policy can save you hundreds of dollars each year.

If you want to consider comparing quotes from other insurance companies, you may have to do some research on your qualifying discounts. Most companies feature a discount page on their online quote form. You simply need to select the options for which you meet the requirements in order to get the discount. Some common discount options include:

  • Student discount
  • Driver’s education discount
  • Safe driver discount
  • Anti-theft device discount
  • Vehicle safety rating discount
  • Continuous coverage discount

2. Paying Monthly Instead of In-Full

When comparing quotes, look to see if your policy with a given provider renews annually or semi-annually. You might have the option to pay your policy in full at renewal and earn significant savings on the total premium. Your premium quote could fall significantly if you agree to pay your policy in full rather than in installments.

3. Setting Your Deductible Too Low

Consider increasing your deductible to save on your policy premiums. The higher your deductible, the more you have to pay out of pocket before your policy kicks in to cover your injuries or damage to your vehicle after a car accident. Still, the less the insurance companies have to pay if you’re in an accident, the lower your premium.

4. Not Shopping to Find the Best Quote

You can edit several coverage limits to compare car insurance rates. Your coverage limit is the maximum amount your car insurance company will pay after an accident.

In Michigan, the required coverage limits include:

  • Bodily injury liability of $50,000 per person
  • Bodily injury liability of $100,000 per accident
  • Property damage liability of $10,000 per accident

Liability coverage protects you against damage caused to the other party in a car accident. If the other driver or their passengers suffer injuries in an accident, you have protection of $50,000 against injuries for one person or $100,000 for injuries of everyone in the other car.

You must also carry a certain coverage limit of personal injury protection (PIP) insurance unless you have acceptable health insurance coverage. PIP coverage options include:

  • None (if you have adequate health insurance)
  • $50,000 (for people with Medicaid coverage)
  • $250,000
  • $500,000
  • Unlimited

Adjust your coverage options when shopping for a car insurance comparison quote to find the best rate that balances your desired coverage and budget.

5. Trying to Hide a Bad Driving Record

Insurance companies will thoroughly check your driving history, credit score, personal identification information, and more. You could disqualify yourself from insurance coverage with a company if you intentionally fail to disclose certain information on your quote request.

6. Providing the Wrong Email Address

Some insurance companies can generate a car insurance comparison quote in seconds and email it to you immediately. They will also follow up on your car insurance shopping progress and sometimes offer even lower rates to entice you to enroll with them.

By submitting your junk email address, you could miss out on hundreds of dollars in savings if you don’t regularly check that inbox and spam folder.

7. Not Using an Experienced Car Insurance Agent

Car insurance agents have proprietary car insurance comparison quote tools in their offices that can save you hours of research time and get you the lowest premium in a matter of minutes. Your insurance agent can enter all your information into a single form, and their system will return several results to compare car insurance rates.

You can also ask your agent to compare a few different sets of inputs or add additional coverage to a quote for comprehensive, collision, or uninsured/underinsured motorist coverage. Your agent can help you compare rates, coverage options, and policy discounts between car insurance companies.

Contact Us at Encore Insurance for a Car Insurance Comparison Quote in Michigan

For help generating a car insurance comparison quote in Michigan, contact our experienced car insurance agents at Encore Insurance. Call us today at 248-466-0190 or contact us online to schedule your free quote appointment.