We make a lot of research while buying a new car. Especially, when it comes to luxury cars, people ready to pay extra bucks for modern features. But one thing that we often overlook while buying a new car is, buying the right insurance plan. Normally, we buy an insurance just to complete the formalities of a mandatory law imposed by the state. However buying a car insurance is a financial planning topic, which is often overlooked. We often pick any insurer after buying our car as a matter of safety and precaution for the car overlooking the details of the policy.
Having a car insurance should be the main priority of the car owners, and over that having the right one is often fruitful for the long term. One must not fall prey to the suggestions offered by the commercials. With all the complex terms and conditions of the company, people hardly find it interesting to read through it and sign the contract without looking into the other aspects of it. Rather one must compare the car insurance quotes offered by different companies side by side and have detailed information of the schemes, their claiming procedures and other aspects. Once finalized, you can also choose to buy car insurance online.
In case, you are also planning to buy a new car insurance, here are a few tips to help you choose the best car insurances according to your requirements.
This is the most important thing to be done before buying car insurance. One must compare all the policies side by side and find out the best suitable one for them which covers maximum aspects and offer best value for money. Check rates of all the companies to make sure that you are getting the best deal. Online insurance comparison tools are the best way to find the most suitable policies without investing a lot of time in the research.
Types of Insurances
- Third party liability Insurance – This plan generally consists of damage to property, accidental death and injury to a third person hit by your car.
- Comprehensive Plan – This one is a preferred option as it covers almost everything like own damage, theft, environmental perils like earthquake, fire explosion etc. as well as legal liabilities of the third party.
Choose the right Car
Things like which car are you buying, what are its features greatly impacts the car insurance premium. It is a common perception that higher the price of the car, higher is the cost of premium of insurance. But it should also be taken into account that most of the Insuring companies count the number of safety features of the car, like number of airbags, Anti-lock Braking System (ABS) etc. More the number of safety features, lesser will be the premium price and a promise of higher claim amount.
Read the T&Cs carefully
There are several factors e.g. rights, liabilities etc. related to your insurance policy which must be carefully read before accepting the contract. This might look a time consuming task, and people often sign without reading the terms, but having a clear understanding of terms and conditions not only saves you from buying a wrong insurance policy, but also from a lot of troubles in future.
Maintain good credit
One must regularly check his credit score, since a low score may impact the premium. There are certain companies which take this factor into account while deciding the premium amount. Better the credit, lower the premium.
Opt right deductible
Deductible is the amount that you need to pay towards repairs in case of accidents. Setting the right deductibles is the major aspect of car insurance planning. A higher deductible reduces your premium, but if accidents happen you have to spend huge amount from your pocket. So, a lower deductible plan should be taken in which you pay a large amount to the insurer per month, but in return you are completely safe and secured in case of accidents.
Don’t miss the discounts
With the growing competition, many insurance companies are coming up with discounts and offers. Take advantages of these discounts. Sometime discount amount also depends on factors like whether you have taken a driving course, and have a safe driving record for years.
If in a situation like your insurance company goes out of business, you must contact Financial Service Compensation Scheme (FSCS) who will be able to assist you in getting back any money that you owe from the insurance companies. If the issue is not settled, than you have the right to notify your case to the Financial Ombudsman Service.They will consider your case and will determine if you have been treated fairly according to the terms and conditions.
Buying a car premium is not just a formality, rather a very helpful and cautious step to be taken by all the vehicle owners to ensure the safety and security of their vehicle.Getting the best insurance for your car is no less than a financial planning where today’s pain would be tomorrow’s gain. One can reduce the premium costs by buying the best suitable insurance for the car with some research and planning.
The safety and security of personal assets is a major issue which must not be looked upon. One should consider all the above tips before buying a car insurance and should understand the major requirements of having the right insurance for their vehicle.