Qualified insurance advisors are not working at 1-800-cheapo-insurance answering phones. It doesn’t take an einstein to figure out who is working the phones when you call. Keeping that in mind, you need to listen to some advice from a 23 year veteran and avoid the 4 most common mistakes that can cost you dearly.

Mistake#1 – Get it in writing before you commit to purchase. Many companies have a history of giving the quote and taking the payment, only to actually issue a contract that is much less coverage or missing an important coverage. Lay the two contracts side by side and do your research.

Mistake#2 – Accident forgiveness ? Have you earned accident forgiveness on your current policy? This simply means that your first “at fault” accident will not be counted against you and raise your rates.Some companies even offer forgiveness for multiple accidents if you’ve been insured with them long enough. Unless the new company can offer you accident forgiveness from day one, you need to consider the possible downside. Most companies will surcharge 30-40% for your first accident and some will cancel or non-renew your coverage. Only you can decide if it is worth the few dollars to “jump ship” and take the risk.

Mistake#3 – Non-Disclosure of all previous claims. If you fail to disclose even one previous claim you may find that your new rate will disappear when your policy is issued. The companies will process your quote on the basis of your credit score and the good faith that you disclosed all information correctly. If you simply forgot about a windshield claim or something you may consider very minor it could cause your price quote to change significantly. Be sure to ask if they have checked your C.L.U.E. report prior to finalizing your new purchase.

Mistake#4 – Not Disclosing all operators in the household. Many companies will issue your contract after gathering all the information you offered. The drivers licenses are checked and the policy is issued. The next step in many companies is to order an inspection report from an independant company. One of the documents you agreed to in the application process gave them the authority to do this. The inspection company can interview neighbors, employers, etc and gather information pertaining to your personal habits that will uncover many misrepresentaions you could have made. The result of misrepresentation can be rate increases and or cancellation.

Remember that you can fool some of the people some of the time. Well, you know rest. These companies are the masters at selling policies and uncovering mistruths so don’t fall into the trap of thinking you will benefit from trying to mislead them. Keep it up front and get the best rate based on your true merit and you can avoid pitfalls that could cause you more stress than its worth.