Car insurance is a topic that all of us face at some point in our lives. Are we obligated to insure our cars?
What type of policy do you need? What are the things you should be aware of before signing on? If you don’t take the time to do your research and compare all of the insurance options available, car insurance can become a maze.
You need to decide if you really want car insurance or if you are willing to let luck take its course. Do you want comprehensive cover? Are you looking for comprehensive coverage?
Each policy is different and will vary from one company to the next. Comprehensive coverage is basically all you need to cover your car, the other person’s vehicle (or the traffic light that you have demolished).
Third party fire and theft insurance is next. Then you can have third-party coverage. Third party covers you for damage to another car, but not your own.
Once you have decided on the type of insurance that you want, you should ask yourself if you would prefer to insure your car at the current market value or an agreed value. This is a very important decision to make. You might want to consider the agreed value option if your car has many modifications.
Most people choose the market value option, but it is important that you read all the fine print. There is a catch to this option. The car’s value at the time of an accident is what the insurance company pays. Because of depreciation, the actual amount paid out could differ from the original market value you originally stated in your policy.
Once you’ve decided what kind of coverage you want, you can start to look at the smaller options.
These are some of the most important to be aware of:
(i) What is the excess?
(iii) Would you like to select the repairer?
(iii). Do you wish to borrow vehicles in the event that your car is stolen?
(iv) Would you like the policy to cover your car for business use
(v) Which drivers are covered?
(vi) Does it have genuine spare parts?
(viii) Is there any limit to towing fees
(viii) Does the policy cover personal property or damaged property inside the vehicle?
(ix) Does it cover taxi fares?
Sam Mola, RAC’s Assistant General Manager Insurance Services believes that it is important to investigate and research all options before purchasing car insurance.
“People should be careful and ensure they are getting the right coverage for them. He said that you should review the benefits and make an informed decision.
“People should be familiar with the coverage provided by the policy, not only compare prices. When a claim is filed, they need to ensure that the company provides the proper claims service. The company should offer high-quality repairs with minimal fuss. The reputation of an organization is important. “Better does not always equal cheaper.”
Daryl Cameron, the Australian Insurance Council’s General Manager for Western Australia & Northern Territory, stated that 85 percent of policies are purchased based on price. This can lead to serious consequences for those who don’t read through their policies carefully. He said that if you lie to your potential insurer, they might refuse to pay out.
It is crucial that the insurer is given all information about the vehicle and any intended driver when they take out a policy, or when renewing one. You must inform the insurer if there are any changes to your policy.
“If you hit a Mercedes and didn’t tell your insurance company about your dangerous driving conviction they might refuse to pay you even though you are covered under them. He warned that if you don’t, you might have to pay the bill.”
Be careful and take your time. Watch out for traps that can catch motorists unaware. It is crucial that you fully understand the situation and ask as many questions about it as possible. It is okay to ask questions and could save you money down the road.
These are 10 things to keep in mind when you’re looking into car insurance
- When searching for car insurance, research, and take your time.
- Choose what suits you, not the insurance companies.
- Answer the following question: Market value or agreed coverage?
- You need to be sure that you fully understand your coverage.
- What exclusions are there?
- What is the excess for a claim?
- Be aware that the cheapest is not always best
- Inform your insurance company about any events that could affect your policy. Do not take shortcuts.
- Find a payment option that works for you.
- Can you claim your no-claim bonus for an ‘At fault’ claim?
