Car insurance buying is the most important task for a car owner. Hence, taking care of a few things can help you in choosing a right insurance policy.
Scored your dream car finally? The next crucial step is to ensure its maintenance and having car insurance helps you with that. Buying insurance is not as straightforward and simple an affair as one would think. Searching for the best insurance policy that covers all potential risks is a herculean task and having a thorough idea of the ins and outs of vehicle insurance policies might help you choose from a plethora of choices available.
Here is an array of the 5 most important questions that you can research on or ask your insurer before settling on a decision:
How much will my insurance cover?
Insurance coverage is the MVP of vehicle insurance policies. One must check what kind of coverages do different policies available in the market offer. There are mainly 2 kinds of policy coverages:
- Accident policies – It covers damages after a collision accident so they are also called collision insurance.
- Non-accident policies – It covers non-collision events like fire, theft and vandalization. This is optional but does add an extra layer of protection to your precious motor.
There is also a mandatory insurance cover which incurs the minimum coverage cost that is required by law before you are allowed to drive a car. This is called ‘third party liability cover’.
What are the payment terms of my insurance policy?
When one buys a car insurance policy from a company, it has its own set of payment terms and conditions to offer. While the trend is to adopt the easiest route when buying potential auto insurance that is either asking close friends and relatives for suggestions or opting for a popular company, it is not the smartest thing to do. One must select an option that’s most convenient for him.
Many insurance companies offer lucrative and surprisingly easy payment schemes, you just have to make an informed decision.
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Does the policy offer any special discount or deal?
This one point could make or break your choice. There is a superfluity of companies offering car insurance but it is you who has to benefit from your decision by acting wisely. Most companies do offer lucrative discounts and deals with their policies, but often the insurance agents refrain from disclosing the same. It is therefore your job to inquire about the ongoing schemes, compare schemes from different companies and bargain hard to score them. You absolutely DO NOT pay any amount they tell you to.
What is the deductible amount on my insurance?
CHEAPEST ISN’T ALWAYS THE BEST. You should be cautious while purchasing a car policy as many insurance companies that provide solutions with low premiums often come with higher deductibles.
Usually, when the time comes to make a claim, an amount called deductible amount needs to be paid by the policyholder before the insurance company comes to the rescue. They pay the remaining amount.
So, be sure to ask the above question while purchasing the insurance.
What are the add-on covers with my policy?
Add-on covers are the additional benefits (prompt roadside help, loss of personal stuff, engine repair, personal accident coverage, key replacement, etc.) that provide better financial protection to your car in the event of a mishap, mechanical glitch, or breakdown. The SOP followed by an agent is to offer a premium quote after calculating add-ons to it. Very often, the agents offer pricey covers which might not be favorable for you financially and practically so, while choosing an add-on cover to go with your policy, take into consideration your car’s model, make and age.
With these 5 questions to shoot at the insurance company, you are now armed with the right knowledge to claim an excellent insurance policy for your car.