Car insurance is meant to help the policyholder meet the costs of damages or losses incurred in the unfortunate event of theft, accident and fire and thus it is very crucial for any driver apart from just being a legal requirement. As a car owner, you must evaluate your situation, your needs, driving history, where you stay and what is available in the market before deciding on a particular policy.
Types of car insurance
The most prevalent types of car insurance include the following;
1. Third party cover
This policy is deemed to be but not always, the cheapest of the three. By definition, it only caters for damage caused to other people and their property (third party) by you and your car.as it does not cover your vehicle, you will have to foot the bill for its repairs or replacement if it is involved in any accident, damaged by vandals or fire or stolen.
2. Third party, fire and theft cover
This cover is a modification of the first cover (third party), to add extra features. It is, therefore, most preferred by policy seekers over the third party cover. It has been also designed to come in and protect you and your vehicle against damages caused by fire and also theft.
3. Comprehensive Cover
As the name of the cover suggests, this policy is designed to cover almost all aspects of the losses incurred in the event of an accident. It has all feature of the third-party, fire and theft policy and on an addition to this, it also covers for damages to your vehicle in the event of an accident. Due to its comprehensive nature, it is typically the most expensive of the three covers, but most recommended.
Buying car insurance
Before deciding on a particular policy cover with an appropriate policy provider, there are various essential things that you need to consider.
– The kind of coverage you need – Whether a basic coverage or a comprehensive one.
– What information is available about the insurance company online? If you cannot get any detailed information about the company, then why bother moving to the next step?
– The credit rating of the policy provider. A good company will have high ratings as per its performance and payment of claims to consumers.
– Consumer complaints. When many people are complaining, there must be something wrong with that policy provider and the cover.
-The company policy – Any good policy will stress on the quality of the cover rather than the cost value.
– What are the discounts? Nobody would wish to take up a cover that is all about taking their money and offering nothing in return in the form of discounts.
Premiums typically differ from one company to another and to get the best deal and value for your money; you need to compare the rates of different companies available where you are.Other important determinants that come into play include the type car you are driving, your age and years of experience behind the steering wheel, your driving record, insurance claims and also what you do for a living, just to mention the basics.
What to do in the event of an accident.
In case of any accident, it is upon you as the policyholder to notify your policy provider as quick as possible to make a claim. You need to have your policy details and the details of any other person involved in the same.
Collect, fill and submit your claim form as quickly as you can and do not forget to attach any supporting evidence that will work to your advantage. Not that not all incidents need to be reported for a claim. A small claim may at times not be worth it so you just opt to foot the bill yourself to avoid losing on the no-claims discount.