The most common and costly mistake people make when they select auto insurance is when they choose a policy based solely on the price. Other common auto insurance mistakes include:

1. Keeping collision coverage that is greater than the cars replacement value.

2. Thinking that insurance premiums will not increase when an individual avoids a traffic conviction by taking the state mandated driving course. They likely will increase.

3. Buying insurance without understanding what each coverage type offers.

Other costly car insurance mistakes can involve thinking of insurance as one of the first things to be dropped from the budget when the budget tightens. Even in states where coverage is not mandatory a lapse in coverage can increase a person’s premiums dramatically even if the lapse was only a short period of time.

The most costly of car insurance mistakes is Driving Under the Influence (DUI). A DUI conviction may place a driver in a special high risk pool made up of drivers that insurance companies normally would refuse to insure. These pools involve the state assigning a driver a company, but not the rate. These policies are often well beyond the reach of the driver.