Even before you make an investment, it’s wise to understand the terms and conditions of your choice. Buying an auto insurance is no different. There are countless small things that affect your premium rates and you should be aware of them.
That’s why we’ve created a list of 7 smart tips for you to follow before you decide on an insurance policy.
Consider your budget
Your car insurance rates are proportional to the type of car you own. If you like adding fancy fittings on your car, know that insurers don’t have a high regard for modified vehicles. Even tinted glasses may cost you higher insurance rates. But hiding modifications may lead to higher premiums too. So if you are a new driver and you’d rather have low insurance rates, then a smaller, less expensive car may be the one to go with. But if you’re experienced and have spent a fortune on your car, then you should be willing to pay higher insurance rates.
Look for discounts
You can get discounts on your auto insurance in various ways. For instance, if you have a good driving record, you’d be eligible for a discount and most insurers apply that automatically. However, if you’re hoping for more discounts, then you may have to do some hunting on your part. Get a defensive driving course to increase your credibility. If you don’t use your car for everyday commute, speak to your insurer and ask for a discount. If you’re a teenager or have a teenage child who would drive your car, ask for a teenager discount. Some insurers even give you discounts when you register as family and groups.
Know your road skills
Sometimes, insurers charge higher premiums based on your age and gender. That you can’t change. But what you can change is your driving skills. Complete basic and advanced driving courses from a reputed institution and you may be eligible for a lower insurance rate and even discounts up to 15 percent. Institutes like The Driving Standard Agency and The Institute of Advanced Motoring offer courses that most insurers recognize. Equip yourself with these certifications to get better insurance rates.
What’s your maximum coverage?
Before you go ahead and close the deal with an insurance company, make sure you understand if the policy has a maximum coverage. Some policies offer only a certain amount of coverage and you may have to buy an additional insurance to cover remaining costs. If you’re not sure, it’s always safer to consult with your insurance company.
Ask for additional benefits
You never know when you’d have questions about your insurance policy. Pick an insurance company that offers round the clock support services and online help portals to help you solve issues. It’s also good to ensure that your insurance company has a proper website and mobile apps so you can pay your premiums online, manage policies and claims, and track repairs on claimed vehicles. For the sake of convenience, don’t be shy to ask.
In some states like Pennsylvania and New Jersey, insurance companies sell discounted insurance policies called “limited tort.” However, you may have to give up some of the benefits. For instance, under limited tort, even if the fault was the other party’s, you can’t claim extra payments for your “pain and suffering.” Don’t fall for discounts and choose cheap insurances; it’s better to go for “full tort.”
Consider safety measures.
Insurance companies consider if you have a garage. It may sound negligible, but the risk of theft and vandalism is far less if you own a garage for when you’re not using your car. Leaving your car out on the street could be risky and might cost you higher premiums. Install security alarms and devices and get them approved by your insurance company to get a benefit of your premium.
Buying an insurance doesn’t have to be tricky. If you know what you’re looking for and if you’re aware of the insurer’s selling strategies, you can get a reliable and secure insurance in no time. And if you need help, we’re just around the corner waiting to help you out.
- How did you buy your insurance?
- Would you add anything else to our list?
Share your insurance-buying adventures with us in the comments below.
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