Sitting behind the wheels of a brand new car is an exhilarating feeling. However, after the initial euphoria fades away, few practical aspects of owning a car might start to dawn on you. And one of the challenges is getting the right car insurance. Choosing a proper car insurance policy is not just important for ensuring the safety of your car but is also a legal mandate
However, if it's your first car and this is the first time you are buying car insurance, there are certain things that you need to keep in mind, and that's exactly what we will tell you in this article.
Also if you are looking for the best car insurance policies in BC make sure you check out Surex’s website. They are one of the leading car insurance providers in Canada
#1 Understanding Your Requirements
Car insurance covers various aspects of protection for your car. But you will find no policy that takes care of all the possible threats to your car. Hence you have to understand your situation and the possibilities to decide what kind of policy is the best for you.
For example, two types of policies that protect your car against possible factors of damage are comprehensive coverage and collision coverage. Collision coverage comes in handy in case your car was damaged in an on-road accident with another car whereas comprehensive coverage only protects your car in case it was damaged by something other than an accident with another vehicle. This includes damage by natural causes, animal attack, vandalism, or theft.
As you can see both of these policies cover equally important aspects yet leave out certain areas that need to be covered. Hence it's your call, to choose the one you think will be more appropriate in your situation.
#2 Choosing The Right Brand
When it comes to your finances you should never compromise on the credibility of your finance partner. In this case, since your finance partner is your insurance company, you should be sure that you are only opting for the best insurance company in your area.
Also, make sure that you talk to a customer care executive from the company to get the best policy for your car. When it comes to car insurance, never settle for less.
#3 Choosing The Right Set Of Add-Ons
Car insurance add-ons are pretty lucrative. They instill confidence in you that no matter what happens with you or your car, everything will be taken care of by your insurance company. This makes you more prone to go on mindless add-on shopping. However, each add-on comes with its own price which can make your overall policy expensive.
Hence, before you buy an add-on, ensure that it is absolutely necessary. Always adopt the cost-benefit analysis approach before making a decision. Weigh the benefits of the add-on against the costs and choose an add-on only if there are significant benefits.
#4 Voluntary Deductible
Car insurance premiums are not cheap and people are often on the lookout for discounts. One way to reduce the costs without compromising your car’s safety is by opting for a voluntary deductible.
In this case, if your car is damaged due to any reason, you will pay a certain percentage of the claim from your own pocket while the rest will be taken care of by the company. In doing so the risk on the company's part is reduced to an extent and hence they will agree to reduce your premiums.
#5 Convenient Claim Procedure
Getting the best deal on car insurance is just half the battle. A rather important aspect of an ideal car insurance policy is to have a convenient claim process. All those months of premium are of no use if you cannot raise a claim and get your money smoothly.
Insurance companies that provide a frictionless claim settlement process always have an upper hand over their competitors. In fact, companies that have an easy-to-use digital platform to interact and complete claim settlements online are much better in comparison to companies that make you go through a stressful process and burden you with multiple documents. Choose a company that has a higher claim settlement ratio. This shows the percentage of claims that a company honors.
#6 Using An Anti-Theft Device
If you are looking for another way to reduce your car insurance premium then installing an anti-theft device is a good idea. Anti-theft devices like alarms and trackers lower the chances of your car being stolen. With lower chances of theft, the risk is also reduced. Hence, your insurance provider will also lower your premium.
#7 Look For Discounts
Many insurance companies offer various forms of discounts on their insurance products. These can be in the form of a no-claims bonus or a student’s discount. You might also be able to strike a lower price, in case you bundle your insurance policies.
For example, if you need car insurance and home insurance, consider getting both from a single insurer. This would reduce your overall costs of the policies.
#8 Other Factors
The fewer chances of your car being damaged, the lesser your premium will be. That’s why you should be careful while driving. If you tend to get into accidents frequently, your future premiums will rise. Similarly, a clean driving record helps you get cheaper premiums.
This is the reason why most people avoid raising a claim if the damage is not too severe and they can bear the expenses without needing the coverage amount from the company.
So these were some things that you should know while buying car insurance. After all, if you invested your hard-earned money in a car, it's important to keep it safe. Also, apart from legal requirements, certain insurance policies cover medical bills in case you are injured in the accident. Auto insurances do not just protect your car but also help you finance your own treatment in case of an accident.
Regardless of the countless benefits of having car insurance, there are certain things your insurer doesn’t tell you. These tips will increase your chances of landing the best policy.