How To Choose A Suitable Vehicle Insurance For Your Motor Car
You can buy a cheap auto insurance even if you have no experience in such matters before. If you just take care of 2 major factors when buying car insurance, you can adequately reduce your cost. These 2 factors are the automobile insurance coverage and your choice of riders.
automobile insurance premium is greatly affected by the type of coverage you pick. There are 3 types of coverage – Comprehensive Coverage, Third Party Fire and Theft and Third Party Only Coverage. You’ll buy a Third Party Only coverage when you want to insure your car only against damages to other people’s vehicle and property. This also compensates for bodily injury caused by accident. The Third Party Fire and Theft insurance compensates for the loss of your car through fire or theft, in addition to the coverage as described for the Third Party Only coverage. Comprehensive coverage gives you the best financial protection by compensating for any damages to your automobile and to other’s vehicle or property as a result of an accident.
With these 3 types of car insurance coverage in mind, which would you choose?
If the value of your car is substantial and you’ll want to protect it from loss, you may want to get a comprehensive car insurance. However if you drive a functional automobile that doesn’t cost much, you may want to think about the Third Party Fire and Theft coverage or the Third Party Only coverage.
Since the price difference between these 3 car insurance policies are substantial, you may be saving a big amount by buying the correct coverage.
The second most important attribute of car insurance is the choice of riders.
Rider is a very important feature of a car insurance policy. They allow the car insurance policy to serve specific needs you may have. It also helps to save you money. This is because taking up separate (individual) insurance policies will result in much higher premiums.
There are different riders to choose from. Windscreen coverage, loss of use coverage, accessories coverage, age condition benefit, any-workshop benefit, extended medical and accident coverage and additional driver coverage are some riders you can employ to serve your needs. These features may already be incorporated into your car insurance policy, or they may exist as separate entities, to be introduced when you want them.
The fee for each rider ranges from 3% to 10% of the insurance policy. Thus it’ll be wise to think through whether you need them before you sign on the dotted line. If you leave out all the riders, you may be saving as much as 15% from your automobile insurance premium. This means if you have to fork out $1,000 for your car insurance this year, you may only have to pay $850 for your automobile insurance.
If you take a little time to consider what you are buying, you are very likely to end up with a suitable car insurance that doesn’t cost you an arm and a leg. All it takes is to think about the type of car insurance coverage and the riders that come along with your insurance policy.
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John Amical, the author of this article, is a recognized expert in car insurance with more than 18 years of experience.
