Choosing right Insurance !

Exercise caution while choosing your Insurance

In our previous discussions we learnt, how to establish your car budget and choose your car. In this chapter, we’ll learn few bits on – choosing your right Insurance.

Car Insurance coverage is mainly two types – Third Party or Comprehensive. Although sometimes you may come across few other variants too. For instance, auto liability coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional. Understanding what’s more suitable in your situation, can help you choose your right insurance coverage.

If you are planning to buy your car on cash basis, you must preferably opt for a comprehensive cover. In case you  choose to get your car financed, full insurance is anyways mandatory. The Insurance cost depends on your choice of the make, model, type of vehicle, etc. Moreover, your driving history, also determines the premium you pay. For example new driving license holders have to pay a higher premium.

Benefits of Insurance

The common understanding about insurance is, that it’s done to repair accidents or to get compensation for your stolen car. Although, you are entitled for these as regular benefits, however we often overlook one of it’s major benefit.

You guessed it right !

That is to have a liability protection. For instance, if you injure or kill someone during a car accident, you are covered by your Insurance. Also, in the event of damage to any property, you’ll be covered.

However, you need to bear in mind, that the excess amount, has to be borne by person causing accident. Consequently, each time you cause an accident, you need to shell out the excess amount. This gives you a reason, to be aware of excess amount clause, while choosing your Insurance. Your aim should be to bargain for a lower excess amount in your policy.

Be sure to obtain multiple quotes including one from your current insurance provider. Likewise, consider using a website, to obtain quotes from multiple companies, such as

www.policybazaar.ae,

www.aqeed.com/…/04/the-top-insurance-companies-uae,

Prime Factors :

While choosing your car insurance, you must pay attention to few important factors like:

Reliability: Firstly, researching online, is the best way, to gather preliminary information on your insurance policy.  Similarly, you can gather inputs, through your colleagues and friends, to compare and narrowing down your choices. Although, for similar coverage plans different companies offer different rates. However, cheapest policy may not necessary be the best. While researching you should also factor in the reliability of the Insurance Company. As a result you can avoid unsatisfying experiences, at the times of any future claim.

Coverage Plan: Some of the Insurance companies play around with hidden extra costs. These may be camouflaged in the form of, Excess amount or any additional fees. As a result, you get tempted by a lower premium. Subsequently, you have to shell out more money, by paying excess amount.

Transparency: You will find yourself more comfortable, dealing with Insurance Cos. having a transparent policy. Most importantly, you are clear from the start, what benefits are covered, and how is your premium derived. For instance, whether you are entitled for, a break-down cover, road side assistance, replacement vehicle etc. Be aware of the costs, as the company offering a little higher premium may be associated with these benefits.

To summaries, you should choose the insurance, which offers you peace of mind, even at an extra premium.