Car Insurance is expensive nowadays not to mention complicated that we start doubting its need in our lives. One has to choose a policy very specifically or one could end up paying more than they are required to. To make matters worse the policies have a limitation which can turn into a liability, when you are trying to claim money from the insurance company. Insurance can be hazardous if we do not put in time for research and investigation, to see other policies that are available in the market. If you decide on taking insurance, then your next question will be, whether you want the policy to cover you completely or do you need it for specific damages like fire and theft or even include third party property damages. The different between such policies is major and the costs vary from country to country. In policies that cover you completely, they not only cover you, but also the third party to whom damages have sustained. There is a policy that covers third party fire and theft insurance, this covers the damages done to the third party, but not the damages incurred to your car.
The amount you want to cover your car is also decidable; you can cover it at an agreed value of the car or according the market value of the car. It is prudent to get a car insured at an agreed value, if it is of a special model and has had a lot of custom work done to it. Most people go for market value, but one should go through the documents carefully because there can be a flaw in the policy. Insurance companies will cover the car to the value of the car, in the market at the time of the accident only. It will not cover the amount that you have paid for the car. Since assets like cars depreciate on a yearly basis, so you could be losing out on your income, in case of an accident. There are other options that are smaller and more complicated, with which you will have to deal with. The excess, selecting a repairer in case of an accident, will you be buying another car if your vehicle is to be stolen, car to be purchased for personal/ business use, the drivers of the car and whether they will be insured or not, the repairer will use genuine parts or not, limit on towing fees, coverage for personal property present in the car at the time of the accident and coverage for taxi fares.
It essential that one goes for a policy that suits all their needs. They cannot sign on a document without through the benefits provided by the insurance company. One cannot judge the policy on the basis on price only, may be a policy is expensive, but it might have more benefits than a cheaper policy. On a similar basis, a company maybe offering a cheaper rate for a policy that covers the same needs as an expensive one, but this company should be able to meet claims, when required to do. So the reputation of the company also plays a part since you do not only require a policy, but you also need a policy that can perform.
In most of the cases i.e. 85% of the cases, people select a policy on the basis of price only. This can be risky business, not going through the policy properly. Moreover, if you are not entirely honest to the insurer, then may refuse to pay the claim for the damages. Even if you ‘forget’ to mention as certain detail to the insurer, it will be considered evasion on your part and again you may not be paid the claim. So make sure you have the papers and details ready from before, to avoid problems later. Also, if there are any changes later regarding the car, always remain alert to inform the insurer about the changes, without delay. Insurance companies consider it your duty to disclosure. If you happen to hit a car and do not mention it the insurance company, then they will refuse to pay your claim even if you are covered. In such cases you will be required to pay the bill yourself. Look out for flaws in the policy since it is the best way for insurance companies to make profit off you. Get all your doubts clarified and read the policy from cover to cover, it will save you a lot of money on the long run.
Follow these ten points before signing on the insurance policy:
1. Take out time for researching and looking for insurance policies.
2. Look out for a policy that suits your needs.
3. Decide whether you want to go for Agreed Value or Market Value.
4. Know in advance regarding what all kinds of damages you will be covered for.
5. Also, find out what kind of claims will you be excluded from.
6. The excess in case of a claim
7. The cheapest policy is not necessarily the best policy.
8. Inform your insurer about everything, even the accidents that incur.
9. Pay by a channel that suits you the best, cheque, credit card, etc.
10. Find out if can claim your claim bonus, if you are declared to be at fault.