You’ve heard of car breakdown insurance by now, but do you actually know what it does? And do you understand how to use it and get the most out of your policy? If not, then the following car breakdown insurance mistakes may sound familiar to you.
From signing up with an unlicensed company to failing to file claims. The good news is that all these issues can get fixed. So, take a few minutes to learn from other people’s mistakes. And avoid making your own with this guide.
On 8 terrible car breakdown insurance mistakes rookies make—and how to avoid them.
Not buying Car Breakdown Insurance at all
Even though you might think car breakdown insurance is a waste of money. It’s actually required by law in most states. So, even if you have a more comprehensive auto policy already in place. It’s important that you buy car breakdown insurance.
To help keep your financial situation safe and sound. Here’s why: Car breakdown insurance is your one fallback. If something happens (like an accident) that wasn’t covered by your original plan.
For example, if you get into an accident while on vacation that leads to major property damage. But it also damages your car and thus isn't covered by your regular auto insurance plan.
Coverage from car breakdown insurance can help pay for costs. Like renting cars and paying for a cab or Uber back home.
Buying Car Breakdown Insurance but not reading the details
Though most auto insurance products have similar pricing structures. They can vary in their details. It’s important that you read and understand your policy. Because one of those details could end up costing you plenty. For example, a flat tire can get fixed under some policies for free (as part of a roadside help package).
But it would cost you $100 or more under other policies. In other words, make sure you know what coverage is actually included. Before paying for car breakdown insurance, read every single page of your policy!
If something isn’t clear to you (or if it doesn’t make sense). Call your insurer immediately; things are often open to interpretation and clarification.
Only check out the price of Car Breakdown Insurance
In some ways, it makes sense to go for cheap car breakdown insurance. After all, we’re talking about a plan to pay out very little in relation to what you have already paid for it! The problem is that your policy will likely leave you under-protected.
Like comparing grocery prices. Before deciding which store is best for your weekly shop, don't look at price when it comes to insurance. Look at the value too!
Don’t get so focused on finding a great bargain that you end up with one of those tiny little roadside help packs. Instead of a proper package that will keep you protected. As well as possible should anything happen.
Not understanding what excess is for Car Breakdown Insurance
The excess is your deductible amount. The deductible is an amount of money you must pay before your car breakdown insurance kicks in. For example, if you have a $100 deductible and pay $200 for repairs.
You will receive reimbursement for $100 from your car breakdown insurance company. Your excess would be $100, which means that you will owe $100 yourself. After receiving reimbursement from your car breakdown insurance company.
Having low- or zero-excess coverage may be beneficial. Because it makes it less likely that you’ll let minor problems get out of hand. Or skip maintenance altogether.
Not comparing like for like Car Breakdown Insurance
All car breakdown insurance plans provide different levels of cover. For example, some will reimburse you for your car collection if a part is from a robbery, whereas others don’t.
Always make sure that you are comparing like for like and getting what you think you should be paying for. The more information you can gather about each policy on offer.
Before making a decision, the better equipped you will be to make an informed decision. Which policy is suitable for your needs? Car breakdown insurance policies come in two basic varieties: standard and advanced.
A standard car breakdown insurance plan covers essential parts. Only things such as the battery tire and engine do not include mechanical faults. An advanced car breakdown insurance usually provides roadside help.
Such as jump starts or changing tires. Plus, mechanical faults including windscreen replacement or locksmith service.
Failing to take care of a vehicle
All cars need maintenance, which is both an expense and a hassle. Because car breakdown insurance is for drivers who use their vehicles more. The usage is more than average.
You’ll want to ensure your vehicle doesn’t need much regular upkeep. For example, avoid driving on rough terrain or carrying bulky items (like furniture) if you can help it. Those are surefire ways to shorten your car’s lifespan.
And force you into costly repairs later down the line. Car breakdown insurance also includes coverage that includes warranties or loaner vehicles. In case something goes wrong while your own vehicle is being repaired or replaced.
Driving an older car without regular maintenance checks
Having your car checked by a mechanic can save you money. Car breakdown insurance is to cover the repair.
Or replacement costs if your car breaks down and leaves you stranded. But, if you don’t take care of your vehicle, it may not be enough. First, driving an older car without regular maintenance checks can put you at risk.
This risk can be from having breakdowns on the road. This is one of our biggest rookie mistakes that we see from first-time policyholders. Making sure to keep your car in good condition will ensure it doesn’t break down when you need it most.
Forgetting you have cover, then driving off without paying attention to your surroundings
Even if you are feeling confident, avoid driving off without paying attention. Cars are heavy, and accidents happen. The last thing you want is for your car breakdown insurance to only kick in after an accident has occurred.
You should never let your guard down when on the road. Instead, be sure that your car breakdown insurance policy is active. Before heading out on a journey you know it will provide protection if something does go wrong.