When it comes to car insurance people are often confused about these 5 things
author: AutoManiac date: 2022-02-02
Good to know
WHEN IT COMES TO CAR INSURANCE PEOPLE ARE OFTEN CONFUSED ABOUT THESE 5 THINGS
Remember when you laid your eyes on your dream car for the first time? Remember when you first brought it home? Now it is time to protect that dream car of yours. You might be a pro at choosing the right car. But are you a pro at deciding the right car insurance too? Perhaps not.
Car insurance is very important, and it should not be chosen just to meet legal requirements. One must choose car insurance very carefully as it helps you to protect your dream car. However, finding the right insurance for your car could be quite confusing.
Read on to know some of the common confusions that you might face while choosing the right car insurance and ways to overcome them.
1. What things does car insurance cover?Car insurance would help you to protect your dream car. Having car insurance will save you a huge sum of money. Everything seems hunky-dory until the branch of a tree falls on the hood of your car!
Car Insurance covers collision covers if your car is involved in any type of accident. It also covers non-collision accidents if your car is damaged by sudden events such as a storm. Apart from covering costs of car damage, it also covers costs for bodily injuries for those that are involved in the accident.
2. What kind of insurance cover should I look out for?It is important to understand the types of insurance coverage before you choose a car insurance policy. To describe you in simple words, insurance cover describes the type of coverage that is available. Four types of insurance covers that are available in the market are:
- Third-party cover - It covers the cost of car repairs, the cost of medical treatments for third parties that are involved in the accident, and any liability that arises from the death of a third party.
- Collision damage covers – As suggested by the name, it covers any type of car repairs that you might have to undertake.
- Personal accident cover – You can opt for this cover when you want to protect yourself too! It will cover your medical expenses if you are involved in a car accident.
- Comprehensive car cover – This provides the most extensive coverage. It covers the liability of third parties; your medical expense, collision, and non-collision cover too!
3. Should I go for a Low premium or a High premium policy?The most common confusion among first-time car buyers is, "How much is car insurance?" Calculative customers often think that it is a waste to spend large amounts of money on car insurance premiums. As a result, for most people, choosing policies with the lowest premiums remain the prime focus.
Let us make it clear why this thought is wrong.
Cost should never be the only deciding factor when you choose a car insurance policy. One must look into what the insurance would cover. Sometimes car insurances with the lowest premium do not cover medical expenses and non-collision expenses. This might lead to major inconveniences if you get involved in a car accident, or your car suffers damage due to non-collision events.
4. What is Umbrella Insurance Policy?Umbrella Insurance Policy can cover large liability claims that you or your family members might face. Umbrella Insurance policies could be purchased by customers that have a higher possibility of damage. This limits the amount of money that you would have to pay as most of the amount would be covered by the insurance.
In simple terms, an Umbrella Insurance Policy covers the cost of various incidents that might not be covered by your general car insurance policies. This would come in handy if you get involved in a fatal car accident, and the third party puts forth a huge large liability claim.
5. How would I claim car insurance?This depends on which type of car insurance you have. For example, if you have comprehensive insurance, you collect a form from your insurer or keep in touch with the other driver or their insurer. You would also be required to give details about the mishap and the policy number of the other driver.
In the case of repairing a vehicle, an insurer sends an inspection team to determine the current condition of your vehicle before the car is sent for repairs. The insurer might ask you to go to a pre-approved repair company or might ask you for an approx. estimate that all the repairs would cost.
In Conclusion:A responsible car owner does not only purchases car insurance to meet the legal requirement. They do so to protect themselves, their family members, and their prized procession –their car! Choosing the right car insurance is as important as choosing the right car for yourself. Purchase an insurance policy that would not only meet the legal requirements but would also be able to save your time, money, and peace of mind in the future.
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