Before Buying Car Insurance

by Ronel Forbes

February 3, 2022

Motor Car insurance is a great method to build a solid financial cushion. However, the fundamental notions can be perplexing at times. You may be misled by legal phrases, coverages, or exclusions.

So, the easiest approach to figure out how to buy the correct coverage is to ask the proper questions. It will assist you in understanding the fundamentals of auto insurance, allowing you to obtain a better-suited coverage at your next renewal (or purchase).

Before you get car insurance coverage, you should ask the following questions.

What do I want to get out of my car insurance policy?

Purchasing car insurance is sometimes treated as a chore that must be accomplished without much thinking. It shouldn’t only be about picking a plan and paying for it. When you need to file a claim, this strategy can be detrimental. What if you purchased insufficient insurance? You can make a list of your criteria before acquiring a car insurance policy to avoid last-minute headaches.

Consider how frequently you drive with other people. Consider purchasing the Personal Accident Cover for Passengers add-on if you frequently drive with your family or friends.

Another example is if you have a history of claims, you might consider getting the No Claim Bonus (NCB) Protection add-on to avoid losing your collected NCB.

What isn’t covered by my auto insurance policy?

It’s just as crucial to understand what’s covered by the policy as it is to know what isn’t. Exclusions are the things that aren’t covered by your automobile insurance policy. If you file a claim to overturn an exclusion, it will be denied.

So, what are the most typical vehicle insurance policy exclusions? Here’s a list of them.

Car damage caused by normal wear and tear is not covered.
Vehicle mechanical or electrical faults, as well as manufacturing defects, are not covered.
If you drive after drinking an intoxicating substance, such as alcohol, you risk causing damage to your vehicle.
Damage occurs when you do not have the proper paperwork, such as a driver’s license. License to drive.
There are a few more exclusions listed in the policy paper.

How much does it cost to insure my car?

Because there are numerous elements that go into determining the premium, the cost of each automobile insurance coverage varies slightly. Things like the sort of vehicle insurance policy you have, the quantity of car insurance add-ons you have, the car’s model, its current market value, and so on.

So, when you’re ready to get vehicle insurance coverage, make sure to check out the car insurance website first. It will assist you in determining the policy’s approximate cost.

Car insurance jargon is really perplexing. So, what should I do now?

The phrases used in an automobile insurance policy can be a little complicated, which might lead to some misunderstanding. Check out the vehicle insurance glossary for a fast rundown of all the keywords in the industry.

These terms are organized alphabetically to make it easier to find what you’re looking for.

You will have a better understanding of the coverages after you are familiar with the phrases used in vehicle insurance. Then you may choose the best plan for your vehicle.

Is it a good idea to have a voluntary deductible?

Deductibles are a part of the total amount of your car insurance claim settlement. While your insurance carrier will cover the majority of the repair costs, you will be responsible for the Deductibles.

In vehicle insurance, there are two sorts of deductibles: mandatory and voluntary. The names speak for themselves. The percentage of voluntary deductibles you choose is up to you, whereas compulsory deductibles are set by the insurance.

Is this, then, a positive thing? Yes, if you are confident that you will not need to file a claim, you can choose a voluntary deductible.

You are telling the auto insurance company that you will pay a portion of the claim amount by doing so. As a result, you will receive a discount on your auto insurance payments.

Is it necessary for me to purchase car insurance every year?

The duration of your automobile insurance policy determines its validity. Some plans are long-term, while others are only good for a limited time.

According to the legislation, you must get at least a third-party car insurance coverage, which can be annual or longer depending on the insurance company’s terms and conditions. You can then purchase a Comprehensive policy to get more comprehensive coverage.

Is my car insurance company trustworthy?

You should always check the insurance company’s registration number with the Insurance Commission to see if it is a legitimate insurer.

Tips for new car insurance buyers

If you’re new to the concept of car insurance, here are some basic guidelines.

Always compare: Comparing car insurance policies will help you to learn more about each plan’s specifics and compare them on the basis of coverage, services, and price.

Know your requirements: As previously stated, knowing your particular requirements before purchasing a plan will be beneficial. This will assist in eliminating unneeded coverage or add-ons. Furthermore, you may be certain that you are purchasing exactly what you require.

Understand the insurance company’s reputation: Nowadays, you can examine a company’s performance online (through social media handles). Examine the company’s user feedback, star ratings, and testimonials.

Bottom line

Car insurance is simple to comprehend. You don’t need to understand the concept to purchase an appropriate policy, nor do you need to rely on someone else to do it for you.

The process has become more transparent and straightforward thanks to digital insurance. When you are already due to renew your car insurance, it’s a good idea to review your current plan.