There are very few people in the world who don’t recognize the value of car insurance. The vehicles are simply too valuable investments and can get damaged too easily (often due to others’ mistakes) to leave this important box unchecked. That said, paying fair rates for reasonable coverage is one thing, and burning money on the policies you will never possibly use is something completely different. The fine line between these two options is usually drawn with a bit of research.
Let us take a look then at the five tips that will help you to choose the absolute best policy for your particular vehicle.
Clean up your driving record
When people wonder why they are paying exaggerated insurance premiums the answer can be usually found in their driving records. Yes, when they are tailoring their premium rates, insurance companies tend to do very thorough research of the driver’s previous traffic violations. Usually, these inquiries are limited to major violations like crashes and bumps. But, some insurers go as far as to increase the insurance rates based on the offenses like parking tickets. Take this fact into a serious account and try to keep your record as clean as possible.
Make a list of your requirements
If you ever want to get the insurance that will be suited to your specific requirements and financial situation, you will first need to make some important coverage considerations. First thing – what do you exactly want to cover? The three options you will most likely get to choose from are:
- Liability insurance – The legal requirement in most of the countries. It covers the injuries and property damage you have direct responsibility for.
- Collision insurance – It covers the damage to your car after the collision with another vehicle.
- Comprehensive insurance – The premium package that usually covers weather events and accidents involving animals.
- Personal injury protection insurance – This arrangement covers up to 80% of medical expense stemming from a car accident.
- Tailored car insurance – The arrangement in which you get a car insurance quote based on the list of the specific, personalized requirements.
Another important consideration you will need to make in this regard is the type of the insured vehicle. Traditionally, expensive sports convertibles entail much higher premiums than family vehicles with high safety ratings. If you are asked to pay some unbearable price for even the most basic insurance packages, maybe it’s the time to replace your daily driver.
Avoid car dealer insurances
This has nothing to do with the quality of service or irregular payments. In the simplest of terms, car dealerships operate in very unfavorable circumstances where the commission for add-on insurance policies sometimes goes all the way up to 70%. Because of that, they tend to spice up the contracts with policies that are not always in your best interests. Still, if you read the fine print and, hopefully, manage to negotiate a discount, these terms can be put into a much more favorable frame.
Be painfully honest with the insurer
Failing to mention some important facts regarding the vehicle and your driving habits may get you lower premiums, but keep in mind that these benefits are only short-term. Once the time to collect the insurance finally arrives, omitting information will give the insurer a legal basis to refuse your claims. Therefore, be honest with the insurance company and inform it about the real number of persons using the vehicle, eventual modifications, are you using the car for work, etc.
Inquire about the exact scope of things covered by the insurance policy
Finally, before you sign up for any type of insurance package double-check the terms to determine what exactly is covered by the premiums you are asked to pay. For instance, your vehicle may be insured against robbery, but the stereo equipment inside of it not. And then there is a huge gray area and different interpretations regarding the driver’s responsibility in the accident. Casting some light on issues like these during negotiations will help you to get a much more comprehensive policy.
We hope these few tips will help you to choose the insurance package that will be tailored around your specific needs and financial standings. None of us has the luxury to drive a car without some method to redeem the damage in the case of an accident. But, that doesn’t mean that we should swing in the opposite direction and agree to some terms that are expensive, unfair and often unnecessary.