Car Insurance

Take Note of These Aspects Before Purchasing A Car Insurance

A sense of freedom isn’t the only thing associated with owning a car. It comes along with great financial responsibility – car insurance. Holding car insurance is mandatory in all US states except New Hampshire where drivers can skip purchasing insurance and instead show proof that they are financially stable to pay for costs in the event of an accident.

What is the point of car insurance?

Car insurance plan offers necessary financial cover for vehicles against damages like physical damage to the vehicle, personal injury, property damage, theft etc. The right choice of car insurance protects you, your family members and other drivers which make it essential to make an informed purchase.

What should I know before purchasing car insurance?

Reputation of insurance company: Shortlist insurance companies with good reputation. Shop around, get referrals from family and friends and look for online reviews. If you are looking for genuine online reviews click here. Truly Insurance is the best online resource for car insurance reviews. It features honest reviews making it easy for us to shortlist an insurance company.

Coverage: The coverage amount varies between companies and the coverage amount that works for your friend or your parent isn’t an ideal fit for you. Figure out how much coverage you require based on your state requirements, driving habits, your financial stability etc.

Know what is covered: Insurance plans generally cover:

  • Loss or damage caused by man-made calamities
  • Loss or damage caused by natural calamities
  • Personal accident cover
  • Third party legal liability
  • Medical payments

Consider comprehensive coverage: If your car is brand new comprehensive coverage is better than third-party coverage. Comprehensive policies are pricier since it provides over-all coverage to both parties involved in an accident while third-part insurance plans can’t be used for covering personal damages.

Insured Declared Value (IDV): The premium coverage amount is also dependent on a car’s IDV. It denotes the maximum claimable amount under a motor insurance policy and is higher for new cars. If you are renewing insurance policy for an old car, you can opt to insure your car for a lower IDV.

Bundled car insurance: Insurance plans are costly and it is possible to lower the amount spent on insurance by clubbing insurance plans of all cars in your household to avail discount. This way you can save up to 25% on premiums but you could miss out on good deals from other insurance providers.

No Claim Bonus or NCB: It is like the insurer’s reward to the policyholder for not making any claims during the course of a policy year. The discount can be availed before renewal of policy. You can avail a discount of up to 50%, if you don’t apply for claims for few consecutive years.

The insurance market is flooded with choices and each plan comes with different features. Many people end up paying more than they have. Compare insurance plans online based on premiums, inclusions and exclusions and find the right fit for your needs.