Home Cars Tips to Help You Pick the Right Car Insurance Policy

Tips to Help You Pick the Right Car Insurance Policy

by Susan Seymour

Did you know that 80% of millennials in the United States own a car? Owning a car can bring significant value to a personal and professional life by making their commute more manageable. However, the vehicle needs to be protected with adequate insurance cover.

Various companies are selling car insurance today, so choosing the right one has become more challenging. Each insurance policy is different, and an individual’s needs are also different due to the nature of their cars and preferences. When looking for an ideal insurance policy for your vehicle, you need to look for an option that is price competitive and provides maximum coverage. Here are tips for picking the right car insurance policy and reaping the maximum benefit from your investment:

Identify the Coverage You Need

Source: freepik.com

While it is tempting to go for the cheapest policy available, it may not be ideal for your car. Affordable policy plans tend to provide less to no collision coverage that helps one recover their vehicle after an accident or unforeseen circumstance.

Additionally, almost all states except New Hampshire would require you to obtain liability coverage for your property. If you get a cheaper policy, it may not cover the liability protection required by the government. If your case includes filing for legal claims, a reasonable policy may not even cover that.

It is essential to identify the coverage you need from your insurance provider. We’ll recommend seeking an insurance cover that meets your unique needs. If you are leasing your car, it is also recommended to go for gap insurance which helps you pay the gap between the leasing price and the market value of your vehicle in case your car is totaled.

Research the Financial Standing of Car Insurers

Source: freepik.com

The company you choose for your car insurance should be in good financial health. This ensures the company is able to pay back your claims much faster. You can compare the financial standing of each insurance provider in your locality by asking for word-of-mouth reviews and checking their name online. You can easily find various reports online from rating companies like Fitch and Moody’s, which can help you access and compare the financial health of your insurance provider.

Compare Insurance Quotes

Source: freepik.com

Insurance estimates can be obtained through websites, telephones, local banks or insurance providers, and even agents that provide specialized services. You need to compare insurance prices beforehand, as the price ranges from company to company.

The insurance quote you get will be based on the risk associated with your vehicle. Insurance providers use a unique formula to measure the risk associated with the policy buyer’s vehicle and anticipate their contribution through claims.

Insurance providers can also consider your ZIP code and determine the rate of accidents in your locality while making your custom plan. Some companies may also consider your car’s price and the estimated cost of repairing that car. Hence, the price quote will vary significantly among different providers. You should compare each insurance company’s benefits and make a well-informed choice.

Check Available Discounts

Source: freepik.com

Many insurance companies offer seasonal or special discounts on various occasions. These discounts make the pricing of expensive coverage at par with cheaper ones and give you higher value. If you are a teenager or parent of one and you have exceptional grades, you may even qualify for a reduced insurance rate. Installing an anti-theft device may also help you get a discount on your insurance policy. It is advisable to ask the customer support of potential insurance companies about any ongoing or upcoming discounts to avail of the best deals.

Check Claim Settlement Process and Ratio

Source: freepik.com

Your insurance provider should have a healthy ratio between the claims raised for them and the claims they have been able to settle. This ensures the credibility of your insurance provider and tells how true they are to their words and catering to their clients’ claims. Choosing a provider with an easy online claim settlement process is advisable, which reduces your time consumption and commute cost in case you need to raise a claim.

Understand Insured Declared Value (IDV)

Source: freepik.com

Insured declared value or IDV is the ceiling of maximum coverage your insurance provider promises if your car has been damaged beyond repair. IDV can also be explained as the amount between your vehicle’s original price and the depreciation.

If your car has been taken away in cases of theft or crushed in an accident, your insurance provider is liable to provide you with the IDV amount. We recommend that you inquire about IDV from all your potential providers and opt for an insurance company that offers an option for you to customize the IDV value.

Availability of Customer Support

Source: freepik.com

Customer support is vital for every company, especially in the services industry. Choosing an insurance provider that offers 24/7 customer assistance, even during public holidays, is essential. This will allow you to settle grievances, if any, at your convenience. This ensures that you can reach out to the team at any given moment and file your claim for faster processing.

An ideal insurance company should have numerous modes of communication and customer support made available through contact numbers, email, and even chatbots on the website. Multiple communication channels ensure that your queries are resolved on time, through one mode or another.

Network Garages

Source: freepik.com

Some insurance companies have a chain of garages called network garage, which enable you to get your repairs done without paying any cash upfront. That ensures you access facilities when required, even if you do not have cash. It can also prevent further damage to your vehicle and ensures that repairs are made on time. Having access to network garages through your insurance policy also frees you from the worries of carrying cash all the time while traveling. If you frequently travel by road for work or education, it is advised to choose an insurance provider that has network garages on your travel route.

Endnote

Insurance companies offer different services and discounts depending on the package you sign up for. When choosing your insurance provider, you should compare the policies and ask questions from their customer support. You can easily search car insurance quotes online like from this site and compare the pricing of each policy. Your insurance may be a little pricey if you own an expensive car. Checking the price competitiveness, IDV, streamlined claim process, and financial health of the insurance provider is advisable to make the right decision.