Congratulations on having moved out of the car that your parents gave you on your 18th birthday or the $ 1000 noise machine that you bought yourself to look cool in college. Now that you have a decent car you must also think about getting yourself a decent insurance cover that will cover all possible damages that it may face. Here’s what you need to know before buying car insurance.
Cheapest insurance is not the best insurance
Having just bought a car might mean that you have shelled out some amount for down payment and now your monthly bills have also increased. But that does not mean that you get your hands on the cheapest insurance out there. This rookie mistake can prove real costly if you have purchased a new car. A cheap insurance does not cover all bases and chances are that you might end up paying for repairs from your own pocket just because your insurance does not cover it.
What does the policy cover?
You have heard our first advice and rejected the cheapest insurance. But which insurance do you actually choose. That will depend on what all would you like to be included in your insurance cover. In case of accidents or even breakdowns, some insurance companies offer you roadside assistance, free towing to the nearest authorized repair station and even taxi fare for you to reach home safely.
Of course, your premium here will be slightly higher. If you do not mind paying for the taxi back home yourself, then you can opt for something that costs lesser. However, you must ensure that your car insurance covers damages to the vehicle and also covers people injured and property damaged in case of an accident.
Don’t file a claim because you have insurance
Just because you paid a few premiums and your policy is active does not mean that you file a claim because an ice cream truck hit your car bumper. There are some minor incidents that you and your car can live with. So don’t be in a hurry to file an insurance claim. Rather not filing unnecessary claims makes you eligible for a no-claim bonus, which reduces your insurance premium, the next time it is due for renewal.
Plan your payments
Paying insurance in installments is the easiest option since it does not pinch your pocket. However, on the long run, it turns out to be a little more expensive for you and beneficial for the company, so the company does not really mind. So, plan your payments and pay off your premium amounts in bulk and you can save up to a good $ 100 every year.
Get a discount where you can
In such a competitive environment, all insurance companies are doing everything in their capacity to woo new customers and retain old ones. So, while switching your policy to a new provider can get you discounts, online renewals offer the option of using a coupon and getting a discount as well. Insurance company ties ups include workplaces, university alumni associations, soccer moms clubs and even your nearby supermarket.
You could even couple your home and car insurances and get a discount for opting for a single service provider. Keep your eyes open for any such discounts that might come your way, but also ensure that your policy covers everything you are looking for. Always remember, rule number 1, cheap insurance is not the best insurance.