A car insurance policy is the next thing that rings into your mind after buying a vehicle. This is because it helps in ensuring that your expensive investment is protected against predictable damages. In fact, buying insurance cover for your automobile is not something to debate about. This is due to the fact that accidents when you least expect them as long as you will drive your car, it’s obvious you will encounter such an experience once in a while. The advantage of investing in auto insurance is it relieves you from the burden of replacing your car and compensating other people that got injured during the accident. Here are a few tips that can guide you on what to look for when buying a car insurance policy.
1. What’s included in the Cover
The problem with most motorists is that they rush into buying auto insurance blindly. This denies them an opportunity to understand what they are getting themselves into. Before you sign on the dotted line, it’s advisable you read between the lines of the car insurance information. This helps in ensuring that you know what the policy covers and what it doesn’t. Once you have read the terms and conditions of the policy, you will not be disappointed when the insurance provider fails to honor your claim if it’s not part of the policy. For instance, you will know if the insurance provider can replace your car if it’s torched by angry mobs or if it’s struck by lightning.
2. Comprehensive vs. Third Party Cover
There are basically two major types of car insurance; comprehensive and third party cover. When you buy a comprehensive cover, all the burden of compensating the victims and repairing or replacing all the cars involved is taken by the insurance company. It’s highly recommended for ordinary folks who feel that they may not be in a position to cough such a huge amount of money. In fact, it usually costs more than third party insurance. On the other hand, a third party policy is much affordable. This is because it only covers the cost of compensating other cars and passengers. What this means is that you will have to repair your car or buy a new one without being assisted financially by the insurance provider.
Deductibles are basically is the amount of money that you are supposed to cough from your pockets when maintaining or repairing the car. This is because it’s assumed that the insurance cannot be reimbursing you for every dime you spend on such repairs, especially the minor ones such as replacing a light and side mirror among others. However, it’s the deductibles that determine the premium that you will be paying every year. If you choose a package with a low deductible, you will definitely be required to pay more money every year. On the other hand, a policy with a high deductible features a low premium amount. You should settle for this option if you have a stable source of income as you will be paying for the majority of repairs on your own.
Insurance companies use discounts to attract more customers. Since there are many insurance companies that are interested in doing business with you, it’s recommended that you shop around and settle for a company that offers the best deal in the market. If you have several cars, you can get a multi-policy discount. Besides that, there are insurance providers that will reward you with a discount if you have not made a claim for a specified period of time.
5. The Reputation of Insurance Provider
There are providers that have a history of delaying in honoring claims that have been filed by their clients. You should, therefore, confirm that the insurance provider has a good reputation. Your surest bet when digging for such information is to check online reviews to see how the company is rated by existing customers. You can inquire via social networks such as Facebook and Twitter to see if there are people who did not get paid.
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