Purchasing car insurance as a beginner can be a baffling affair if you are not armed with the right knowledge. Most first-time buyers often ask friends and family about the correct insurance to buy. Experts in the field of auto-insurance say this is “really” not the correct way for you to buy car insurance for your vehicle. This post gives you a simple guide to follow when you are about to buy car insurance for the first-time so read on to find out.
Understand the types of car insurance coverage
The coverage of most car insurance policies available to consumers in fall under the following categories:
1. Third-party insurance liability insurance coverage: These policies protect car owners from various legal liabilities which arise from unfortunate motor vehicle accidents. These include serious injuries, death of any damage to the property of third-parties. The policies do not cover the insured cars, their owners or drivers behind the wheel, and
2. Comprehensive insurance coverage: These insurance policies provide the following coverages:
- Own-damage cover which protect the owners’ cars from accidents, theft, natural disasters and man-made calamities. The coverage is even applicable when cars are in transit,
- Third-party liability insurance coverage which is similar to the standalone version above,
- Personal accident coverage which safeguards the cars’ owners from serious injuries or deaths resulting from accidents. However, the coverage does not extend to passengers in backseats of the vehicles.
5 Tips To Buy Car Insurance As A First-Timer
1. Know your specific requirements
Finding and buying a car insurance policy whose coverage meets your specific needs depends on many considerations. These include the actual value of your car, the outstanding amount you need to pay your financier and your dependents. You even need to consider the sum your family can afford to spend in the event of a car accident. You also need to keep in mind that as an electric car owner your insurance policy must have the standalone third-party liability coverage. Furthermore, it is prudent for you to consider your budget when deciding what add-ons to include in the insurance coverage.
2. Compare policies prices
When shopping for car insurance policies, you need to compare insurance plan prices online. All major auto insurance companies have their own official websites which you can browse free of charge. Your intention should be to look at the prices and coverage of the different policies these corporations sell. Comparing the prices of different insurance policies, they have to offer allows you to choose the most economical one. While browsing through them, you should even check the insurers’ market reputation, customer support service, online reviews and claim ratio. You need to buy a car insurance policy from a company with good claim disbursement history.
3. Read the fine print of the insurance policy document
After selecting a car insurance policy of your choice, you need to read the fine print of its policy document. You need to clearly understand its terms, conditions, exclusions, disclosures and claim procedure before signing. It is will contain many legal expressions which you might clearly comprehend as a first-time buyer. It is important for you to ask the insurance company’s officials to clarify all of these terms. They should also be willing to answer all other questions you might have regarding the policy. However, if the officials are not so helpful, it prudent for you look for alternative car insurance policies to be on the safe side.
| Tip-Use a magnifying glass the read the fine print but never overlook it as there might be a clause hidden inside it. |
4. Never let your policy lapse
Over time, your car insurance needs are going to change. It is important for you to regularly evaluate your insurance policy and upgrade its coverage. For instance, you might need to replace your present car with bigger one when your children are born. Again, you might want to curtail your car insurance coverage while quitting your job to start a new business. This is why you should always review your car insurance needs over time. However, you should never default on premium payments and allow the policy to lapse. It is illegal to drive a car which does not have an insurance policy. Moreover, your insurance company will refuse to insure your car in case you have an accident.
5. Compare quotes and stay within your budget
Last but not the least, never buy an insurance policy for your car if you cannot afford it. Thanks to the number of insurance companies, there are a plethora of auto insurance plans for you to choose from. Research well, understand the terms and conditions of the insurance policy document and if needed never hesitate to seek help from a qualified insurance advisor.
Therefore, when it comes to buying car insurance for the first-time, stop asking your friends and family. Follow these five tips above and invest in a policy that gives you protection and value for money with success!
