5 Common Auto Insurance Mistakes That Could Cost You Thousands
by Maddi Butler
Nobody wants to spend more than they have to on insurance — and no one wants to be left uncovered when they need it most. But the truth is, many drivers are unknowingly making simple mistakes that end up costing them big. Some of these mistakes might only add up over time… others could hit your wallet all at once.
Here are five common slip-ups to watch out for — and how to avoid them.
1. Letting Your Policy Lapse — Even for a Day
Life gets busy. Payment reminders get missed. But if your policy lapses — even briefly — insurers see you as a higher risk. That can drive your rates way up when you go to reinstate or start a new policy. In some states, you could even face penalties or license issues.
What to do:
Set calendar reminders or autopay, and don't wait until the last minute to renew. If you're thinking about switching insurers, get the new policy lined up before canceling the old one.
2. Not Updating Your Policy After Big Life Changes
Got married? Moved to a new zip code? Changed jobs or started working from home? These details matter more than people realize — they can affect your rates and your coverage.
What to do:
Anytime something major changes in your life or driving habits, let your insurer know. You might actually qualify for a discount or get better coverage at a lower rate.
3. Choosing the Cheapest Policy Instead of the Right One
It's tempting to go for the lowest monthly premium — but that choice can backfire if the coverage isn't enough when you need it. Too little liability protection, no collision coverage, or sky-high deductibles can leave you on the hook for thousands.
What to do:
Don't just look at the price tag. Look at what's included. Ask yourself: If I got in an accident tomorrow, would I be okay with what this policy covers?
4. Ignoring Your Deductible
Some drivers choose a high deductible to get a lower monthly rate — but then forget about it. If you get in a minor accident and realize you're on the hook for $1,000+ out of pocket, that's not a fun surprise.
What to do:
Pick a deductible you can realistically afford. If you've built up some savings, a higher deductible might make sense. If not, opt for one that fits your current situation.
5. Forgetting to Shop Around
Loyalty is great… but it doesn't always pay. Many drivers stick with the same company for years without checking if they're still getting the best deal. And some insurers quietly raise rates over time.
What to do:
Compare quotes every 6–12 months. You might be able to get the same (or better) coverage for less — especially if your driving record is clean or your car's gotten older.
The Bottom Line
Insurance isn't something most people think about until something goes wrong — but a few simple choices can save you thousands and a lot of stress. We're here to help you avoid these pitfalls and make sure you're covered the right way.
If you haven't reviewed your policy lately, now's a good time. And if you're curious what other options are out there, we can help you compare in minutes — no pressure, just clarity.