If increasing numbers of drivers on the road are uninsured, as the industry expects, those with insurance should be sure they're adequately protected. Here are common mistakes to avoid:
■ Driving without uninsured-motorist coverage: If you're in an accident with an uninsured driver, this insurance will pay damages for you, your car and passengers. It also pays in hit-and-run accidents if the other driver flees the scene. It will probably increase your premiums by 7 to 10 percent, but could help you avoid financial ruin if you're in a serious accident.
■ Failing to consider insurance costs when car shopping: If you are in the market for a new vehicle, consider how the design of your car, in terms of safety and repairability, and the likelihood your model will be stolen, might impact the cost of insurance. Some car equipment, such as anti-lock brakes, air bags or motorized seat belts can actually provide savings through equipment discounts.
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■ Buying insurance with the lowest deductibles: You can save money on your monthly insurance premium if you increase the deductible on your policy. It might be worth considering increasing your deductible from $500 to $1,000, for example, to save on your premium payments. You must weigh, however, whether paying $1,000 out of pocket is worth the savings on your premium payment.
Sources: Allstate Corp., The Travelers Cos. Inc., Hartford Financial Services Group Inc.