Car insurance accounts for a large percentage of the amount spent on a car per year for the average citizen.

While some of these expenses are allowable and are put to good use especially if you are dealing with reputable companies such as BMO insurance, some of them are as a result of some mistakes made by the car owner while purchasing a reliable insurance.

The following is a list of some of these costly mistakes and how you can avoid them.

1.    Wrong insurance

Cheaper is not always better and this is so true when it comes to auto insurance. Most people opt to go for minimum coverage so that they can pay less premiums but when they get into accidents they realise the importance of having had a full cover.

This is because if you take out a minimum cover, you will only be reimbursed a maximum of that amount, no matter how badly damaged your car is. The rest of the amount you are left to pay on your own, and you suffer a much greater loss than you would have had you just paid little extra premiums a month.

2.    Withholding information

Here is where some car owners go so wrong. If you lie to your insurance company about a couple of speeding tickets or an accident you were involved in so that you are not made to pay higher premiums, you can rest assured that they will find out and when they do, your premiums will go through the roof.

These factors (speeding tickets and accidents) make you qualify as a high risk and you ought to pay the premiums associated with that; otherwise you will pay the penalties.

3.    Not paying in lump some

Most insurance companies offer up to a 2012021iscount for paying the full amount of premiums for the year at a go, but most people do not want to feel that pinch that comes from paying such a large amount and would rather forego the discount and pay in small amounts throughout the year.

4.    Getting a DUI

If you have ever gotten a DUI, then you have seriously messed it up for yourself. A DUI conviction is probably the worst thing you could do to yourself in terms of car insurance. It can cause your premiums to be increased by up to 40nd there is nothing you can do about it as you have already proved to be a danger on the roads.