Buying Car Insurance? Don’t Do It Before Reading This
With increased gas costs influencing the expense of having a car, it is worth searching the ways to cut down on other linked expenses. Choosing the right car insurance is a good place to start. However, picking a car insurance could be overwhelming or even confusing for the uninitiated. Many drivers choose an insurer upon purchasing a car without looking at the policy details, which can break the bank.
Below, you can get familiar with some tips and ways to cut back your premiums and find the best deal. Here are 10 critical considerations when choosing the right car insurance.
1. Decide what type of car insurance you want
Whether you own an old valuable or new car, you should decide if you need the highest level of insurance coverage available or a loan where your car presents security over that loan. If so, a comprehensive insurance is the best way to go. Aside from covering legal liabilities of the third party, this plan also covers stealing and damage to property caused by unpredicted perils such as fire explosion, earthquake, cyclone, and the like.
But if you have a comparatively inexpensive vehicle and want to get it protected only from crucial liabilities, then you should choose a third party liability insurance. It typically covers accidental injury and death to a third party as well as damage to property.
2. Check annual rates
It is always smart to compare several companies in regard to annual rates when choosing the right car insurance. You can visit state/country insurance departments on this issue and familiarize yourself with available services at first hand. Otherwise, you can do a thorough research online by means of a car insurance comparison tool from the comfort of your own home. The choice is yours!
3. Set the proper deductible
Many people go for a higher deductible. Wrong! While it can reduce your premium by up to a 40%, you’ll be forced to pay more in the case of a car accident. A higher premium is only recommended to those drivers with no accident in their driving history and top driving record.
4. Make policy documentation clear
Gone are the days of hard-to-understand legal documents and fine print. Policy documentation is highly accessible, easy to download and comprehend these days. But if you don’t understand any detail of the policy, do not shy away from contacting your insurer by email or phone in order to query unclear things before buying a policy.
5. Report diminished mileage
Be sure to notify your insurer if you have changed your job. This is important to do if you’ve become unemployed for some reason or if you’re now working at your home. That means you are going to drive less in the future. Let your insurer know that and get qualified for a lower premium.
6. Make use of features & benefits
Keep in mind that not all policy plans are equal when choosing the right car insurance. Look for those plans that come with a number of features and perks rather than picking a car policy based on the price only. A good car insurance provides a rental car and accommodation in event of a loss or theft. You are also advised to check your coverage for liability in case of property damage and bodily injury alike. That’s because risk and costs increase over time.
7. Check for crash repairs
It’s a good idea to find out in advance where you will be referred for crash repairs, since some repair shops push their customers to use cheap, low-quality spare parts. Non-OEM parts often don’t meet safety standards, fit poorly, and are prone to malfunction or rust.
Always seek original OEM parts and genuine equipment, especially if you own a luxury expensive car. If your policy doesn’t stipulate genuine replacement parts, it’s very likely that the repair will involve third-party, cheaper parts.
8. Consider payment frequency
A costly insurance premium can break the wallet when the bills fall due, so it’s wise to consider choosing a regular payment option. This way you will be able to arrange your payments equally throughout the year and pay the same amount each month.
9. Beware of frauds and scams
Many drivers get ripped off by crooks in event of staged car accidents. It often results in insurance claims against them even if they were not at fault. How to avoid this disagreeable scenario? If you find yourself in the middle of a traffic accident, call the police right away and take some photos at the accident scene meanwhile.
10. Take advantage of discounts
A lot of insurance companies offer discounts for drivers taking a driver training course or those who are at lower risk of accidents. Same goes for loyalty discounts that apply to the constant, repetitive customers. Some safety and anti-theft equipment can cut down on your cost, too. Therefore, you need to consider all the discounts available before choosing the right car insurance.