Many of us are probably planning to buy new car soon and many already has one but most of us are unaware as to how to go about an automobile insurance. We can never undermine the importance of insurance, as its only will help us in case of accident as well as damages covered under the insurance policy.
So, when you choose your car insurance policy, keep these things in mind to ensure that you get good coverage against the premiums you will be paying for the insurance. Here are the 6 Best Ways to Buy Car Insurance:
There is Nothing Like Cheapest Price
There are different insurance policies for different people and they vary according to the demography, paying capacity, vehicle and other things. Similarly, the coverage may also vary accordingly. So, no company can claim to charge the lowest even for your car insurance policies. Also, do not go for cheapest policy without understanding what it offers you and the coverage of the claims. Many people commit the mistake of opting for cheap insurance policy and don’t fall prey to the insurance advertisements and look around for every deal available in the market. Just remember, cheapest car insurance policy may not be the best!
Take into Count the Local Insurance Brokers and Insurers
Many does not understand the difference between car insurance agent and insurance broker. Well, car insurance agent works for a particular company whereas a broker sells insurance policies of multiple companies. So, going to an insurance broker will give you an idea about the types of car insurance policies other companies are giving.
Also, small or local insurers provide you better assistance and have higher customer satisfaction rate as compared to bigger companies who have lots to sell and lesser to assist you. Also, they might give you better coverage in cheaper price for real.
Always check for discounts and price breaks. Insurance companies have varieties of discounts and options when you have
- Multiple vehicle insurance under one policy.
- Clean driving record.
- Clear record of bill and installment payments.
- Membership of certain professional organization
Count Insurance Cost in the Car Cost
When you are buying a new car, you pay attention to engine efficiency, repair and service cost, fuel average, maintenance, etc. You should also count the insurance premiums to be paid when calculating the cost of the car. This helps in determining the actual expenditure that you will be making for the car and never skip the insurance considering it to be an unwanted expenditure.
Always Pay Attention to Deliverables and Compulsory Deductibles
It is very important that you know the deliverables covered under the car insurance policy. Deliverables like legal coverage and financial assistance, death and bodily damage, accident damage to the vehicle, liability assessment, geographical area, liabilities during wars and other events not directly caused by third party, when the coverage begins and ends, premium to be paid, how to file claim report, what documents are needed and many others.
Deductibles are also very important to understand. Higher the deductible in your car insurance policy, lesser the premium you will have to pay. It is basically the minimum amount that you need to pay for claims. A higher deductible can be charged from you for an old car which has a higher risk for claim or in case of other scenarios where the risk of claim is higher.
The understanding of the car insurance is very important to understand how useful it is to you and how much beneficial it is for your vehicle.
Old Car v/s New Car
Comprehensive and collision coverages are two coverages which should be avoided for old cars. Comprehensive coverage pays for damages caused by weather, animals, fire, flood, theft, etc. while the collision coverage pays for damage caused due to collision with anything. The payout is decided on the basis of market value of the vehicle. If your car is old and has less market value as compared to the cost of damage, the insurance might not help you much there.
These are few of the many things that you should consider before settling up on any car insurance policy for your vehicle. It is important to understand how insurance policies work and how they are useful and then evaluate the insurance policies according to their deliverables. Thus, the tips on the 6 Best Ways to Buy Car Insurance will surely prove helpful.