Car Insurance: 4 Factors to Consider Before Choosing a Policy
Buying a car insurance policy is extremely important for vehicle owners in the modern world. To begin with, the law requires car owners in the US to insure their vehicles. If they drive a car that is uninsured, they may face harsh penalties and fines for doing so.
Moreover, even from the point of view of personal safety, buying an insurance policy is essential. If the car happens to be involved in an accident, the owner may have to pay thousands of dollars for medical treatment, vehicular repairs, and third-party liability.
Buying a reliable car insurance policy from a trusted insurer is the best way to protect oneself against the possibility of such a massive financial setback. But while most people know about the reasons why they should buy a car insurance policy, many of them are unaware about how to choose the right insurer and the right policy.
Buying the Right Car Insurance Plan
Typically, people just buy whichever car insurance plan their friends and relatives are using. Alternatively, they do a preliminary search online and go with the first name that pops up in their search results, failing to do much research about the insurance company they are dealing with. This, however, can prove to be a costly mistake in the long run.
Cars are expensive, and there is some inherent risk involved in the act of driving a vehicle. Road accidents are not as uncommon as most of us would like to think. Therefore, it is imperative that we insure our cars and buy the policy from an insurance provider whom we can implicitly trust.
Factors to Consider When Buying Car Insurance
So, how should one choose the right insurance provider and policy for their car? Listed below are four factors that must be kept in mind when shopping for car insurance.
This is one of the most important factors that needs to be considered when one is buying a car insurance policy. Exactly what does this policy cover? And more importantly, what are the things that it doesn’t cover?
Almost all insurance policies cover liability insurance, which is to say that if you cause a car accident which injures or kills another person, or damages their property, then the money from your insurance policy will be used to compensate them.
However, there are many other types of coverage that you might want in your insurance policy, including coverage for vehicular theft, vandalism, fire, collisions, and any personal injuries sustained during a car accident.
Another factor that must be considered when selecting the perfect car insurance policy is the budget of the buyer. An insurance plan will require the car owner to pay regular premiums in order to maintain the coverage. Hence, car owners must make sure that they do not buy an insurance policy for which the premiums would exceed their budget.
On the other hand, one should be careful not to go to the other extreme and buy the cheapest car insurance policy available in the market. Low premiums are great, but only if they are offered by a trusted, reputed, and well-established insurance provider. You must also ensure that the policy offers sufficient coverage and timely payouts during emergencies.
- Safety Features:
The type of car you have, its manufacturer, model, and features, all of these factors will influence the type of insurance policy you can buy and the amount you’d have to pay in premiums. The size of the car will also play a role, as a larger car would be able to inflict more damage in the event of an accident. Hence, the premiums you will have to pay for liability coverage on such a car would be more than would be required for a smaller or lighter vehicle.
Moreover, the safety features that your car possesses, such as anti-lock braking systems, shatter resistant glass, and pre-collision technology will also help reduce the amount of premiums you need to pay. The more safety features your car has, the less money you’ll need to pay as monthly insurance premium.
In the event of a car accident, the car owner will have to pay a deductible before he or she can file an insurance claim and have the insurance company settle the remainder of the bill. The amount of money that one has to pay as ‘deductible’ can vary widely. The higher the deductible amount, the lower will be the insurance premiums, and vice versa.
In other words, you can either pay a higher amount as deductible at the time of filing the insurance claim or pay more during your monthly insurance premiums. Both options have their own pros and cons, and you should make a well considered choice depending on your particular needs and requirements.
Buying a car insurance policy is no easy task, and it requires thorough research and analysis on the part of the buyer. One should, however, always buy insurance plans offered by reputed insurance companies, preferably with the help of an experienced insurance agent whom they can trust.