Car insurance is the most effective way to protect yourself from financial disaster due to the loss or theft of your car. The tips below will help you choose a policy that’s right for you.
What type of insurance?
Third party – covers damage to another vehicle, damage to your own car is not covered. Third party, fire and theft – covers damage to your own car through fire or theft only, as well as damage to another vehicle. Comprehensive – covers damage to your vehicle and to any other vehicle if you are at fault.
The price of insurance can vary significantly between providers. Get at least three quotes. If you have existing insurance policies, negotiate with your provider – they may reduce their price to prevent you going elsewhere.
Market value vs. agreed value.
In the event you car is written off your insurance company may pay either the current market value of the car, or a previously agreed upon sum. Decide which option you want.
Think about the excess.
Agreeing to pay a higher excess in the event of a claim may reduce your premium. If you have an accident, though, you’ll have to pay more of the cost yourself.
Ask about discounts.
Insurance companies may offer reduced premiums depending on whether or not you’ve made a claim over a certain number of years, how old you are, if you have other insurance policies with them, whether the vehicle has an alarm or immobiliser fitted.
What do you really need?
Extras are nice, but they bump up the premium. Are car hire and accommodation costs resulting from an accident something you expect to use? Is it important that you be covered for towing a boat? Don’t over insure yourself.
Weigh up the convenience of monthly bills against a possible discount for quarterly or yearly payments.
Quality of service.
Check the insurance company’s rating. Ask around – how good is the insurer’s reputation when it comes to handling claims?
Comparing insurers, reading the fine print, knowing exactly what you’re covered for and not paying for extras you don’t need can save you money and, if you’re unlucky enough to have a crash, provide the peace of mind that comes with adequate cover.
Tags: car insurance