If it’s your first time buying car insurance, you might have a lot of questions on your mind. From learning the basics to choosing the perfect policy for maximum protection at an affordable rate, buying auto insurance requires a little homework. Hence, we have prepared a detailed guide for all first-time drivers.
Here, we will take you through the different types of car insurance and explain everything else related to it.
What Kind of Car Insurance Do You Need
Even before the insurer hunting phase begins, the first thing you need to zero in on is what kind of car insurance is suitable for you. There are various kinds of car insurance available in the market. Out of all the options, third-party liability insurance is legally required in most countries.
Here is a brief explanation of the 5 types of car insurance coverages:
1. Liability Insurance
Liability insurance is used to pay for the expenses of the victim in case you caused an accident. The coverage will take care of the car’s damage as well as the bodily injuries of the victim but will not finance your losses. However, if the victim decides to file a lawsuit against you, this policy will take care of your legal expenses as well.
2. Collision Coverage
If your car is involved in an accident then this coverage will pay for the damage. The accident could be with another car or an object i.e. an accident involving your car alone. However, you will need to pay a deductible to qualify for the claim amount.
3. Comprehensive Coverage
If your car is damaged for any reason except a collision, the expenses will be covered under comprehensive coverage.
There could be several causes of damage such as:
- Animal attack
- Natural calamity
- Falling objects
Comprehensive coverage only comes in handy if you seldom take your car out on the road. Moreover, you need to pay a deductible before you can receive the claim amount.
4. Uninsured Motorist Coverage
It might happen that you were involved in an accident where the at-fault driver does not have sufficient liability insurance. In this case, uninsured motorist coverage will take care of your car damages and medical expenses.
5. Personal Injury Protection
Personal injury protection takes care of your medical bills as well as compensates for your lost wages in case you are involved in an accident. It also covers the medical bills of your passenger regardless of whether they have health insurance or not. Also, if the car crash is severe and you do not make it, Personal Injury Protection will cover your funeral expenses.
5 Practical Tips For First-Time Drivers To Buy An Useful Insurance Policy
For all the first-time drivers, here is a list of 5 practical tips that will increase your chances of landing an effective insurance policy:
1. Research and Select The Best Insurance Provider
Finding a quality insurance provider nowadays is a cakewalk thanks to online businesses. The benefit of researching online is that you can compare rates by different companies from the comfort of your home. But before you move to that part, make sure you choose a reputed company. Reputed insurance providers will not only offer reasonable rates but also ensure a frictionless service and claim settlement.
Here is a list of things that you should check in an insurance provider:
- Online Reviews
- Claim Settlement Ratio
- Coverage options
- Additional Benefits
- Customer Service
Check all these things beforehand to get an idea of what you can expect from the company.
2. Evaluate The Add-ons Before Finalizing A Plan
Auto insurance comes with a host of add-ons. These add-ons include benefits like roadside assistance, personal position coverage, zero depreciation, etc. While it is true that each of these add-ons has its own benefits, it’s practically impossible for you to buy all of them.
With an insurer continuously persuading you, you can easily get overwhelmed and buy unnecessary add-ons. Since add-ons come at an additional cost, you should do your homework and know exactly what you want before you step into the company’s office.
3. Consider The Ways To Reduce Your Premium Cost
Car insurance companies will almost always try to make you pay higher premiums. But there are certain hacks you can use to qualify for lower premiums. These include:
- Maintain a clean driving record
- Add someone with substantial driving experience to your policy
- Raise your deductible
- Install anti-theft devices
- Maintain a good credit score
4. Check Out The Company’s Network Garages
Reputed companies have a network of garages. An insurance provider with a good number of garages in their network can provide you facilities like cashless repair and emergency service. Moreover, these garages are authorized and will ensure that you can expect help from the company in an emergency.
5. Understand Each Term Of The Policy Before You Seal The Deal
Before you sign the agreement, make sure you understand every part of it. If there’s terminology or condition that you do not understand, do your own research or consult a lawyer.
It’s recommended not to rely entirely on the words of the insurance company because they might try to scam you. While you don’t have to worry about the authenticity of the agreement with reputed companies like Surex, we cannot say the same for all the companies. Hence if you feel you might need additional help, getting that agreement checked by your lawyer is a smart move.
Investing in car insurance is a big step since it involves a lot of money. For first-time drivers, buying insurance can be daunting given the plethora of terminologies and options available. Hence, caution is paramount. Follow the above-mentioned steps and couple them with your own research to land an effective insurance policy in no time.