Questions to ask before buying car insurance

Extra-Ordinary-Car-Insurance

Car insurance can be hefty monthly bill that very well may never serve its intended purpose to you. However, insuring your vehicle before getting onto the road is part of your responsibility as a car renter. In the event of an accident, you could be either at-fault or the injured party. Depending on which insurance company and plan you go with, car insurance can provide relief by covering the costs of damage. Seeing as each insurance company’s plans vary, here are 5 key questions you should be asking yourself in order to select the best plan for you.

1) What type of coverage do I need?

Depending on the region in which you live, there may be a mandatory level of coverage all drivers must take on. Other coverage types to consider, include Collision Insurance and Comprehensive Insurance. Collision Insurance covers the cost of vehicle repairs, regardless of who’s at-fault. Comprehensive Insurance covers good for unavoidable circumstances, as it covers repair costs associated with instances like vandalism or parts theft. Both are optional and tend to cover physical damage only. You should also consider Bodily Injury Liability Coverage, Uninsured/Underinsured Motorist Coverage, and Personal Injury Protection.

2) How much is the deductible?

The deductible amount is how much you owe for repairs in the case of an accident. While it’s typically a small portion of the entire repair cost, you should consider your ability to pay the deductible when choosing a plan. Generally, low-cost insurance plans come with higher deductibles, and vice-versa.

3) Who is covered under the plan?

Make it a point to clarify who is covered under any plan, so you can loan your car to your family without hesitation.

4) What do I do in the event of an accident?

Understand your insurance company’s rules and protocol for reporting an accident, so you’re not left without support when you need it. For example, ‘Is there a 24-hour window within which you must file a claim?’

5) How could a claim or ticket affect my premiums?

Life happens, and you may find yourself at-fault in an accident or with an officer. The effect of a claim or traffic ticket on your insurance premiums can vary, but it’s important that you confirm exactly how high your premiums could get. Sometimes, higher insurance rates come with more leniency, while lower insurance rates may skyrocket in the case of a claim or ticket.

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