If you are a car owner, getting it insured should be your topmost priority. But again choosing a car insurance policy should not be a hasty decision. It is vital to have a thorough understanding of its features and perks. Following the rise in demand for cars, the industry associated with car insurance has witnessed significant growth. It has become mandatory for car owners to have liability car insurance policies (3rd party). If you fail to produce it when needed, it can lead to penalties and have serious consequences. Before purchasing one, it is crucial to check a few pointers to make the right decision.
Auto insurance companies take many factors into consideration to estimate a driver’s potential risk. That level of risk is what determines the actual insurance premium a driver pays. According to Dordulian Law Group those are the most common factors used to determine auto insurance rates.1) Driver’s Age 2) Driver’s Gender 3) Driver’s History 4) Driver’s Marital Status 5) Driver’s Credit Score 6) Driver’s Education 7) Driver’s Years of Experience 8) Driver’s Address
Pointers to Consider
How to purchase competitive car insurance? Is this question coming to your mind? Well, here is the solution.
- Financial Coverage- As you know, the fundamental purpose of having car insurance policies is to safeguard you against financial obligations that may arise resulting from untoward incidents. The right car insurance plan will provide you with the needed financial protection during bodily injury or property damage at the time of an accident. Besides, it will also offer coverage from human-made and natural calamities. Car insurance is of two types – third-party and comprehensive. In the former, the car insurance company will provide compensation during death or bodily injury of the third-party or any damage made to the car of the third party. The latter will provide extensive coverage, which will also include losses incurred on the car.
- Cashless Garage Networks- It is a crucial point that you need to consider while buying car insurance coverage. Some providers have connections with various car repair shops where the car can get repaired. When you have cashless car insurance, there will be no requirement of paying from your pocket for getting your car repaired. The insurance provider will settle the bill directly with the various repair shops within the network.
Source: Brylak Law - Deductibles- When you choose deductibles; the car insurance premium automatically will amount significantly. Deductibles are out-of-pocket expenses that you pay while making car insurance claims. Though it helps in lowering the car insurance premium, it is best to avoid deductibles above what you can actually afford. Else this is likely to defeat the whole purpose to purchase the insurance cover.
- No Claim Bonus- Always remember, that the best insurance policy will always provide you the perks of NCB or no claim bonus. It is a discount given on premium by car insurance companies provided you do not possess a single claim at the time of the policy period. Learning about the discount percentage of the NCB will help you in determining the amount that you can save on the upcoming car insurance renewal.
- Customization Via Add-ons- Again customization via riders is something that the best insurance plan can offer. Riders or add-ons will provide extra coverage on the basic car plan at additional costs. It will help in enhancing the coverage through different value-added features. There are various rider options which you can explore, such as enhanced owner personal accidents, roadside assistance, engine protection, zero depreciation, among others.
So, next time you buy car insurance, you know how to go about it, right? All the Best!!!
