What To Look Out For When Buying Car Insurance
I completely understand the mindset of buying your car insurance from the lowest priced provider you can find.
The fact that car insurance is normally compulsory in most territories combined with the increasing cost in recent years, really tempts people to focus primarily on price when buying car insurance.
But be careful, the lowest price is not always the best deal, especially if you have to make a claim.
The first thing to realise is that the lowest price car insurance is likely to provide only third party cover.
This means that if your own vehicle is damaged and the accident is your fault, you won't be covered for any financial loss towards repairing or replacing your own vehicle.
If you have a car that is of a reasonable value, you should really consider purchasing fully comprehensive cover.
However, even with comprehensive cover there are some additional things to look out for.
The main one is to appreciate what level of excess you are asked to bear.
This is the amount of any claim that you will be responsible for before the insurance company pays any money.
Usually, you will find the higher the excess, the lower the premium but of course, there is a balance to find here and you should choose a level of excess that suits you.
Other things to consider would be matters such as; whether the policy provides you with protection against your no claims discount, whether vandalism against your vehicle is covered, whether your no claims discount is at risk if you are hit by an uninsured driver and whether a hire vehicle will be provided while your own is being repaired.
I would also encourage you to be really careful about providing accurate information to the insurance company.
For example, you might be asked to declare how many miles you drive each year.
If you under-estimate and need to make a claim, it is possible that the insurance company will reduce your claim accordingly.
The same might also apply if you under-estimate the value of your vehicle.
The bottom line is this.
Understand what your needs are and take care to purchase a policy that meet these needs rather than simply buying based on price alone.
And when you complete your application form, take care to accurately declare all relevant information to the insurance company.
The fact that car insurance is normally compulsory in most territories combined with the increasing cost in recent years, really tempts people to focus primarily on price when buying car insurance.
But be careful, the lowest price is not always the best deal, especially if you have to make a claim.
The first thing to realise is that the lowest price car insurance is likely to provide only third party cover.
This means that if your own vehicle is damaged and the accident is your fault, you won't be covered for any financial loss towards repairing or replacing your own vehicle.
If you have a car that is of a reasonable value, you should really consider purchasing fully comprehensive cover.
However, even with comprehensive cover there are some additional things to look out for.
The main one is to appreciate what level of excess you are asked to bear.
This is the amount of any claim that you will be responsible for before the insurance company pays any money.
Usually, you will find the higher the excess, the lower the premium but of course, there is a balance to find here and you should choose a level of excess that suits you.
Other things to consider would be matters such as; whether the policy provides you with protection against your no claims discount, whether vandalism against your vehicle is covered, whether your no claims discount is at risk if you are hit by an uninsured driver and whether a hire vehicle will be provided while your own is being repaired.
I would also encourage you to be really careful about providing accurate information to the insurance company.
For example, you might be asked to declare how many miles you drive each year.
If you under-estimate and need to make a claim, it is possible that the insurance company will reduce your claim accordingly.
The same might also apply if you under-estimate the value of your vehicle.
The bottom line is this.
Understand what your needs are and take care to purchase a policy that meet these needs rather than simply buying based on price alone.
And when you complete your application form, take care to accurately declare all relevant information to the insurance company.
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