Picking the Right Car Insurance Policy
Finding suitable car insurance option is a very important decision you make other than your choice of vehicle and opting for the right financing option. Just like choosing a bad car loan package can affect your cash flow for many years, similarly, choosing a wrong car insurance package from a bad insurer can affect you for 12 long months.
Therefore you have to understand which car insurance companies really work for your good.
The first thing you must understand about the insurer is they are most concerned about their profits. This is not necessarily bad. However, if an insurer tries to squeeze the very last drop of cash from your pocket without giving you more benefits, you may be left high and dry. So what you need to do is check out the benefits you receive and compare this with other insurers in the market.
If the benefits are not what you really want, then ditch it. Or if there are a lot of benefits but there exists strict restrictions to access these benefits, then this car insurance may be a red herring. Try to ask more questions to find out whether this is indeed a suitable car insurance company you want to insure your car with.
Here are some of the things that you must check before buying a car insurance policy:
Third Party Liability
A third party car insurance cover is one that gives you protection in case of damage by your vehicle to life or property of a third person. This is mandatory for all vehicles plying on the roads. Without this cover, you can’t drive away with your vehicle from the showroom.
Collision coverage protects your vehicle from damages resulting from an accident. Collision coverage will pay for repairing your vehicle, or if your vehicle was totaled in the accident it will reimburse you for the current value of the vehicle.
Comprehensive coverage will protect you against losses from theft or other types of damages that are other than a collision, including fire, hail, vandalism, contact with animals, and acts of God (such as hurricanes, flooding, etc)
Personal Accident Insurance
Many car insurance policies provide a personal accident insurance cover in the case of any eventuality.
Liability for Property Damage
Liability for property damage is coverage against damage you or a person driving your vehicle with your permission does to someone else's property. Damages can include utility poles, fences, buildings, homes, businesses, or almost any type of structure your vehicle comes into contact with.