You are required to purchase car insurance if you want to drive legally. There are a number of insurance companies offering many different types of car insurance policies but buying the right car insurance can be challenging, especially for the beginner.
Here is a brief car insurance buying guide to help you choose the right car insurance for your needs at the right price.
First of all, you need to understand various coverage options available to you. There are many different types of insurance options available to you and some of these options are mandatory whereas others are optional.
Liability insurance provides cover for the other driver in the event of a car accident and it is mandatory. It also covers property damage. Collision insurance provides insurance cover for damage to your vehicle due to an accident, regardless of who is at fault.
Personal injury insurance provides insurance cover for the driver as well as the passengers in case of injuries due to an accident. This insurance covers costs of medical expenses and there are cases where this insurance cover has been used for rehabilitation services as well as lost wages.
Comprehensive insurance provides insurance cover for damage to the vehicle due to non-collision incidents including theft, fire, hurricanes and flash floods among others.
There is also the uninsured motorist coverage where you can get compensation from the insurance company in case you get in an accident with a person who does not have any insurance or is under-insured. It also offers protection against hit-and-run drivers.
As far as choosing a reliable insurance company is concerned, there are a number of factors you need to consider other than the premium you need to pay. After all, you are buying insurance policy for protection which means it should come with maximum customer service and minimum hassle. To choose a reliable company, you should check the financial strength of the company by taking a look at the financial rating of the company.
Another thing you need to look at is the way they handle claims. There are some websites that offer you information on how insurance companies low-ball estimates or cut corners to save money. Also, check the Better Business Bureau rating of the company to find out more about their customer service practices.
When you are looking for car insurance, do not forget to ask your potential insurer about various discounts. Many auto insurers offer significant discounts to individuals who have never made a claim or haven’t received a traffic ticket or haven’t been in an accident.
In simple terms, a good driving record leads to significant insurance discounts. Individuals completing a driver’s safety course or a driver’s education course may also be offered discounts by some car insurance companies. Similarly, installation of certain devices such as anti-theft devices or anti-lock brakes can also get a discount.
Overall, you should choose an insurance company based on their customer service reviews, ratings and premium. It is also a good idea to perform a rate check every two to three years to make sure that you are not paying extra for car insurance.