7 things You Should Know Before Buying Car Insurance
The process of buying insurance can be a challenging exercise for anyone. Sifting through the numerous insurance companies offering all manner of so-called attractive packages and online deals requires careful deliberation. In order to prevent getting disappointed and confused, here are 7 things you should know before buying car insurance. This will ensure that you get the right car insurance at the best price for your wallet.
Research and Shop Around
It is advisable to get as many insurance quotes as you can from various companies. To get a proper comparison of the various deals and packages, remember to give each agent or company the same details when asking for the price quotes. These details would normally include car condition, usage, driver license data and type of car insurance cover required. You can use the local media or yellow pages to obtain contacts of the companies and agents available in your area. Your family and friends are also a vital resource for getting testimonials and references. They can give pointers based on their experiences, especially when it relates to claims. Online sources are also an invaluable resource when learning about various insurance companies and car insurance policies and packages. Whereas online quotes are useful, talking to the agents face-to-face or by phone is usually more preferable.
Keenly and thoroughly read your car insurance policy
It is extremely important to remember that a car insurance policy contains legal obligations and implications. Both parties are expected to know what is required of them once they sign the policy documents. You should therefore keenly and thoroughly read and understand each clause in the document and ask for clarification in case of any unclear issues. You can also consult regulatory insurance bodies for further explanation.
Be clear on your needs and wants
Most companies try to differentiate themselves by offering extras and add-ons such as lowering deductions, giving amnesty on the first accident or giving round-the-clock customer service. In addition, remember if your car is old comprehensive cover may not be what you need.
Always Ask Questions
If you select a car insurance broker to work with, ask a few questions-for instances whether the offered policy is at the lowest possible price. This is what they are required to do but most agents may be tempted to consider their earnings first. You should also demand an explanation of the policy termination rules and procedures. Termination rules differ and this explanation avoids getting terminated due to minor issues.
If possible get a multi-policy
If you have other existing insurance covers, for instance, home coverage, it is prudent to ask them if they can also combine this into a multi-policy. Having this combined home and auto cover usually comes with a high insurance discount as the insurance provider would prefer to retain you as a client and is also aware of your insurance history.
Fully disclose your driving history
It is vital to disclose all information about your driving record, even if it is poor. When buying car insurance online, one is usually required to enter information relating to their driving record. The insurer will normally cross-check with the Department of Motor Vehicles. Therefore, before making online applications remember to confirm with the Department of Motor Vehicles and clarify any unresolved issues.
When there are changes, inform your insurer
Any change in your situation and circumstances for example relocation, leave or job change should be notified to the insurance provider. This has an effect on the insurer’s risk and cost profile and you may risk rejection or annulment of potential claims and coverage.
Conclusion
The process of buying insurance can be a challenging exercise for anyone. Sifting through the numerous insurance companies offering all manner of so-called attractive packages and online deals requires careful deliberation. In order to prevent getting disappointed and confused, here are 7 things you should know before buying car insurance. This will ensure that you get the right car insurance at the best price for your wallet.
Research and Shop Around
It is advisable to get as many insurance quotes as you can from various companies. To get a proper comparison of the various deals and packages, remember to give each agent or company the same details when asking for the price quotes. These details would normally include car condition, usage, driver license data and type of car insurance cover required. You can use the local media or yellow pages to obtain contacts of the companies and agents available in your area. Your family and friends are also a vital resource for getting testimonials and references. They can give pointers based on their experiences, especially when it relates to claims. Online sources are also an invaluable resource when learning about various insurance companies and car insurance policies and packages. Whereas online quotes are useful, talking to the agents face-to-face or by phone is usually more preferable.
Keenly and thoroughly read your car insurance policy
It is extremely important to remember that a car insurance policy contains legal obligations and implications. Both parties are expected to know what is required of them once they sign the policy documents. You should therefore keenly and thoroughly read and understand each clause in the document and ask for clarification in case of any unclear issues. You can also consult regulatory insurance bodies for further explanation.
Be clear on your needs and wants
Most companies try to differentiate themselves by offering extras and add-ons such as lowering deductions, giving amnesty on the first accident or giving round-the-clock customer service. In addition, remember if your car is old comprehensive cover may not be what you need.
Always Ask Questions
If you select a car insurance broker to work with, ask a few questions-for instances whether the offered policy is at the lowest possible price. This is what they are required to do but most agents may be tempted to consider their earnings first. You should also demand an explanation of the policy termination rules and procedures. Termination rules differ and this explanation avoids getting terminated due to minor issues.
If possible get a multi-policy
If you have other existing insurance covers, for instance, home coverage, it is prudent to ask them if they can also combine this into a multi-policy. Having this combined home and auto cover usually comes with a high insurance discount as the insurance provider would prefer to retain you as a client and is also aware of your insurance history.
Fully disclose your driving history
It is vital to disclose all information about your driving record, even if it is poor. When buying car insurance online, one is usually required to enter information relating to their driving record. The insurer will normally cross-check with the Department of Motor Vehicles. Therefore, before making online applications remember to confirm with the Department of Motor Vehicles and clarify any unresolved issues.
When there are changes, inform your insurer
Any change in your situation and circumstances for example relocation, leave or job change should be notified to the insurance provider. This has an effect on the insurer’s risk and cost profile and you may risk rejection or annulment of potential claims and coverage.
