By law, all motorists must be insured. In fact, driving without valid car insurance is illegal. Having car insurance is essential because it covers your expenses in case of death or bodily injury to you or a third party, such as other drivers, passengers or pedestrians, or any damage to their car. The car insurance policy provides compensation up to an amount agreed in the contract.
Benefits of insurance
Some insurances safeguard your vehicle from all kinds of calamities, such as fires, terrorist attacks, theft, riots, earthquakes, floods, etc. in addition to the third party’s claims.
Car insurance is beneficial in that it can prevent the loss of considerable sums in the following manner:
It covers the expense of vehicle repairs due to damage caused by accident.
It includes damage caused by other calamities, such as theft, fire, etc.
It provides benefits to survivors if an accident results in death.
It covers lawsuits, including legal fees brought against you as the result of a mishap.
Car insurance policies allow discounts for those who have additional policies from the same insurer. They extend coverage to people who may drive your car with your permission.
The market is full of service providers. Talk to family members and friends and get a reference. Instead of trying a new place, it’s wiser to go to an organization that someone you know has had a great experience with. At times, it can be confusing to choose the right car insurance provider. Here are some guidelines that can help you select the right one.
1. Know what you want
Know your priorities before you begin searching for car insurance. There are different types of insurances, such as third party and comprehensive coverage. Ideally, you need a company that offers the most coverage at an affordable price. But since everyone’s needs vary, look for a plan that suits your requirements. Don’t be blindsided with the cheapest premium. Make sure you understand all the logistics and amenities before making a decision. You don’t want to be shortchanged on any actual coverage.
2. Gather company information
There are many things you need to look into. Once you’ve picked out a couple of the names of several firms that are compatible with your needs, investigate whether the car insurance company is registered by the government to sell auto insurance. Make sure to see that it has a valid license. Check to see how long the company has been in business. Ideally, select one that is well-established and has years of experience.
It should be in good financial standing. It’s vital to check whether the agency is capable of paying the claims that it offers.
3. Check customer reviews
Research online to see if it has positive reviews. As a service provider, there should be negligible complaints. The easiest way to get current information is through social media. Reach out to platforms such as Twitter and Facebook to evaluate how they respond to customers.
4. Work the phone
Checking online is just one of the steps of finding the best insurance company. The staff is a crucial component of the business. Talk to a representative to get a feel of how they interact with clients. A good corporation will focus on customer satisfaction. They will provide all the necessary information without pressuring you to make a hasty choice.
5. Compare quotes
Comparing car insurance quotes isn’t just about the price. You need to know about other important aspects such as how the provider handles premiums in the event of traffic violations, at-fault accidents, and other common premium-increasing incidents. Conversely, inquire about discounts and rewards programs. Sometimes they offer discounts for drivers of certain ages or cars with anti-theft devices. Others provide rewards in the form of lower premiums for drivers with consistently display good driving records.
Comparing quotes by phone is actually easier and faster than on the net. All you need is have at hand is your driver’s license and vehicle registration. Remember to ask the representative to confirm the price by asking them to email the quote to you.
6. Consider long-term rates
Finding car insurance that offers excellent coverage at an affordable price is fantastic. But many circumstances in your life can increase the premiums.
Moving increases your car insurance rates in this case that you relocate from a low-crime area to one with a higher crime or accident rate.
Filing claims, especially at-fault ones, raise the premium.
Traffic violations are similar to claims in that the more traffic tickets and fines you accumulate, the higher your rates become.
Adding a teenager to your policy is the surest way to increase the premium.
Have information about ways to avoid rate hikes or decrease premiums. However, many companies do decrease premiums for at certain times, such as:
Buying a new vehicle with advanced safety and anti-theft features can lower rates.
Moving to a low-crime area tends to reduce premiums.
Mature drivers, generally those who are above 25 years old, are often offered rates lower than that of a teenager.
Marriage decreases the premium because couples are considered more responsible drivers.
7. Research several companies
You need to consider at least three or more companies to make an informed decision. Ideally, you should question car insurance brokers instead of agents. Brokers work with several companies while an agent interacts with only one. Therefore, a broker can guide you in finding the best insurance policy.
God forbid that you should get involved in an accident. Even if you’re driving carefully, you cannot guarantee that the person next to you is obeying all the rules. Instead of having to sell your damaged vehicle to scrap car buyers as a result of a mishap, it’s best to invest in car insurance. At least that way you will have the option of getting it repaired. In that sense, it’s better to be prepared for the worst.
Audrey Throne is a mother of a 3-year old and a professional blogger by choice. Throne is passionate about health, technology and management and blogs frequently on these topics.
Find her on Twitter: @audrey_throne.