Many people tend to buy car insurance just because the law requires it, but do not look deeper into it at how it would benefit them. For such people, they choose low premium costs to choose insurance coverage. However, you may not get all the protection you need with this choice when you choose such a cover.
Before you decide on the car insurance company to choose, it would be wise that you do thorough online research for various policies, considering different parameters. It is important to understand the process of getting an insurance cover before making your final decision.
It is equally important to buy car insurance as to the car itself. If you understand the insurance policy, you will enjoy more benefits at a cheaper cost. Therefore, you will need to read more in this article to find out more on the seven things to check before getting car insurance.
Type of Coverage to Choose
Most of the car insurance companies divide their policies into three:
- Comprehensive car insurance: In case of an accident, a comprehensive plan would protect both third-party and damages and loss that can occur to the car.
- Third-party fire and theft: The benefits you will enjoy from this policy is compensation and loss to a third-party, in case of fire or theft to the car.
- Third-party car insurance: It is the common insurance policy stipulated by most states. Here, the third party would be compensated in case you cause damage or loss to one’s property with your car. The financial coverage would be provided, be it your fault or not.
Get Information about the Insurer
When comparing car insurance companies, you would be interested in the one offering better benefits at an affordable budget. Therefore, key details about the company you need to note:
- Annual and monthly rates for every coverage they offer. Keeping the coverage limits the same for all companies would be ideal to see the better choice.
- The company’s telephone number so that you can call and ask questions about the information you didn’t find online.
- Payment policy. You will want to know the dates which the company considers payment to be due, payment plans, and what happens in case of late payment.
Review the Policy
You will need to read over the key points of the policy, once you have settled on a specific insurance company. It is important to note the details of the policy, besides the price of the coverage. For instance, it may state that in case of damage, new factory parts would be used for repair, unlike aftermarket parts.
When the company has such a requirement, you need to choose wisely, more so if you have just bought a new car. Therefore, you will know that the insurer would replace the damaged part with original manufacturer parts, rather have issues in future.
When calculating the car insurance rates, the decision will be based on several factors that would make you go for the claim. Therefore, your insurance rate would be higher when the risk is at a higher rate to occur.
Determination of risk in many states would entail data like driving record, criminal record, sex, age, and even credit rating. Teens are known for having lots of fender benders and would be rated higher as compared to the elderly.
When you live in a high crime district, you will have to pay more. These are areas with higher cases of theft, posing a higher risk. Therefore, there is no hurry to buy an insurance policy, as you need to shop around to find an insurance company with favourable rates.
When buying a car, you must have considered the budget to incur on insurance. Annual premium payment can be much for you so that you would opt for monthly or quarterly premium instalment.
You can talk with your car insurance company about the possible payment options. Most companies offer yearly and six-month premium payment options.
Sometimes, there can be discounts if you pay the amount yearly, and it would depend on your credit records. Sometimes, you may face a financial burden to pay the bill annually, so you need to inquire about the options provided.
24/7 Claim Service
You may not know the time you would get involved in a car accident. It can be at night or on the weekend, so you need to choose a car insurance company that operates on a 24-hour basis to make a claim.
It will be a bad idea to choose an insurer that is closed on weekends. The 24/7 claim reporting can be done at any time, either by phone or online.
Revoke Old Policy
You need to revoke the old insurance policy once you have the new coverage. Carrying along the card would be ideal if the state has laws to carry proof of insurance.