Car insurance, like many other financial products can be confusing, even overwhelming. Here are some common tips to help you choose an insurance policy that’s right for you.
1. Company reputation
The first thing you have to do is pay attention to the reputation of the company that offers car insurance. You can see the company’s reputation from when the company stood, whether or not the services provided to each client are optimal.
2. Decide what kind of car insurance you need
For customers whose vehicle is used as security for a car loan comprehensive car insurance offers the top level of cover for your vehicle. It is a popular choice for customers with a new or valuable car or someone whose car is financed.
On the other hand, a customer has a comparatively cheap car and wants to protect only against major liabilities (such as being at fault and causing substantial property damage to someone else’s property), then a third party property policy may suit a customer’s needs. Another car insurance option is to elect fire and theft coverage only for the vehicle (but not coverage for crash damage).
3. Guarantees in insurance policy
You must also pay attention to things that are guaranteed and not guaranteed in the car insurance policy. For example, an insurance company only guarantees damage above 75% of the sum insured (in TLO) and the company will not provide compensation if damage to the car occurs due to a natural disaster.
4. Lower your risk
Think about how often you’ll be driving and if anyone else will be using the car. It’s important to calculate mileage accurately when confirming your policy and although lower mileage may reduce your premium, if you skew your mileage information it could invalidate your policy.
Also, providers assess the risk posed by additional drivers, so depending on whether it’s an adult with years of experience, or a young driver who’s just passed, the price could rocket or drop.
5. Word of mouth
A great guide to insurance can be available through friends, family and colleagues – such as those who have been involved in a car insurance claim recently. Word of mouth can be a way to hear about whether an insurer is doing a good job. Online reviews can be a useful source of information as well.
6. Consider additional services
Make sure the workshop has additional services that will benefit you. These services include towing services, ambulances, 24-hour customer service, transportation costs, repair workshops, new for old, and so on.
7. Good customer service
You want an insurer that is set up to handle any issues quickly and efficiently. One way to assess this could be to get on the phone and call the claims department. See how long it takes to get through, and whether the help on offer seems friendly and capable.
8. Drive safely
Cars are split into insurance groups, based on things like repair costs and performance with group 1 the cheapest to insure and group 50 the most expensive. Though it may not be possible to trade in your motor for a cheaper option, there are ways you can keep the costs down.
One way young drivers can lower premiums is to consider ‘black box’ insurance. Black boxes are used to track speed, braking and handling, so look for insurers who offer this service, as the safer you drive, the greater the chance of premium reduction.
9. Features and Benefits
Not all insurance policies are created equal. Some are more the ‘bare bones’ type, and others have a full suite of features and benefits – such as providing a rental car if your car is stolen, or accommodation if you suffer a loss while on holiday.
When you compare policies, it’s important to evaluate the totality of features and benefits, and your needs and requirements, and not make a decision based on price alone.
10. Consider references from close family and friends
You also have to consider references from family or places near you who have bought car insurance for certain companies. This method is certainly more effective because they know more about the company and so that you don’t experience regret in the end.