Car insurance, like many other financial products can be confusing, even overwhelming. Here are 10 common tips to help you choose an insurance police that’s right for you.
1. Decide what kind of car insurance you need
For customers whose vehicle is used as security for a car loan comprehensive car insurance offers the top level of cover for your vehicle. It is a popular choice for customers with a new or valuable car or someone whose car is financed. On the other hand, a customer has a comparatively cheap car and wants to protect only against major liabilities (such as being at fault and causing substantial property damage to someone else’s property), then a third party property policy may suit a customers needs. Another car insurance option is to elect fire and theft coverage only for the vehicle (but not coverage for crash damage).
2. Word of mouth
A great guide to insurance can be available through friends, family and colleagues – such as those who have been involved in a car insurance claim recently. Word of mouth can be a way to hear about whether an insurer is doing a good job. Online reviews can be a useful source of information as well.
3. Good customer service
You want an insurer that is set up to handle any issues quickly and efficiently. One way to assess this could be to get on the phone and call the claims department. See how long it takes to get through, and whether the help on offer seems friendly and capable.
4. Clear documentation
Gone are the days of fine print and impossible-to-understand ‘legalese’. It should be easy for an average person to download and understand insurance policy documentation. Information these days is highly accessible and you should ensure you understand the policy you are considering. Always contact the insurer by telephone or email to query anything you don’t understand – before signing up.
5. Features and benefits
Not all insurance policies are created equal. Some are more the ‘bare bones’ type, and others have a full suite of features and benefits – such as providing a rental car if your car is stolen, or accommodation if you suffer a loss while on holiday. When you compare policies, it’s important to evaluate the totality of features and benefits, and your needs and requirements, and not make a decision based on price alone.
6. Tailor your policy
Due to competition in the market, insurers are steering away from a one-size-fits-all approach to car insurance policies and are instead providing customers the option to choose what features they want in their policy. This allows a customer greater freedom – and, potentially, access to greater savings – by being able, for example, to nominate particular drivers, or capitalise on a discount because a customer may drive a lot less than the average driver. If customers have a history of making very few claims over a long period, they might choose to increase their excess in exchange for a reduction in the insurance premium.
7. Choice of repairer
Choosing their own repairer is something many customers like to do because it gives the policyholder more control. It also means the insurer signs off independently on repairs before the work is paid for.
8. Choose the right car.
Another factor that will affect how much you are paying for insurance is the cost of repair and vehicle damage. When you are buying a new car, check and compare data on collisions by vehicle model. so you can find this information. The dealer should be able to provide you with a booklet that has information or collision insurance cost as produced by the National Highway Traffic Safety Administration. The estimated insurance fees are considered a part of the owner cot information consumer Reports you can get online for all models of cars.
9. Beware of scams.
There are crooks out there ready to stage accidents, and this can lead to a claim against you. In order to avoid being in such a situation, you should always follow the good diving practices, and if you are involved in a crash, immediately start taking photos and call the police to report it.
10. Ask about discounts.
Discounts are easily available for those seen by the insurance company as lower risk or those who choose to go for the driver-training course. Installing safety equipment will also help in reducing insurance costs. Bundling your home and auto insurance is another way you can save, but you should first check the costs of separate and bundled then choose the option that is cheaper.