Due to the higher costs associated with car insurance, drivers often opt for the cheapest policy available. They would often purchase the cheapest policy without studying precisely what it covers. Purchasing a suitable car insurance policy might not be a priority, but it should be, given the fact it would protect one of the biggest investments, your car.
A comprehensive car insurance policy could provide complete peace of mind by covering you, both financially and legally, if you become involved in a car accident or become a victim of car theft. Getting an appropriate insurance policy for your car could be a daunting task for consumers who are unfamiliar with various insurance products available in the market. They would often be left confused and end up paying higher premiums for their car insurance.
Basics of car insurance
A car insurance policy has been in essence only a formal undertaking given by the prudential car insurance company for accepting a certain degree of financial responsibility for any kind of loss, the insured or other parties might incur, through accident, other damage or theft of the car. The degree of financial responsibility, as assumed by the insurer would depend on the type of insurance policy you have opted for. Therefore, it would be highly important that you read your policy along with the schedule to ensure you understand the terms and conditions, terminology and any possible inclusion or exclusion clauses in a clear manner.
When submitting a claim, the insurer would have to pay a specific amount based on a range of factors, which are determined beforehand. The main factors would be make, model, condition and age of the insured vehicle.
A damaged car has been quoted to be repaired and in case, it is found that repair costs have exceeded about 70% of the total value of the car, it would generally be written-off. Insurers would typically pay the policy holder the market value or retail value of the vehicle, based on the terms of your policy. Market value would be described as the average of the retail and the trade value. It would usually not be enough to replace your car with a new one. Ensure your policy states, the vehicle has been insured for retail value.
Who all need car insurance?
Every car owner or driver requires car insurance. Vehicle insurance would protect you both legally and financially, when you cause property damage to your own or other cars along with death or bodily injury to someone else while driving your car. It would be imperative to understand how you could purchase the right insurance policy for your new or used car. You are required to understand the different kinds of auto insurance prior to you decide on which company you would choose for your insurance policy. There have been several insurance companies available in the market. It could be overwhelming to decide which one to go for.
Choosing the right car insurance company
Make a list of various providers you are interested in contacting for quotes. Get a minimum of three detailed insurance quotes to ensure you are comparing apples with apples. In case, you decide to go for the cheapest one, ensure everything you need has been covered. There should be no hidden costs. Inquire about the reputation of price, service and claim settlement turnaround times of the insurer.