Things to Consider When Buying Car Insurance
Navigating the confusing car insurance market can be confusing, especially for first-timers. With so many options on offer these days from different insurance companies, it’s easy to entrust your prized possession to the wrong company.
So how can you make sure you get adequate protection for yourself and your vehicle and get the right car insurance for your needs? Australia’s trusted tyre comparison website, TyreCompare, offers you some tips.
Learn about the different car insurance products
Almost every state requires its drivers to buy car insurance before hitting the road. This doesn’t mean you should purchase it in haste. Before sealing the deal, it’s important that you learn and understand first the different types of auto insurance available. The following are the most common types and their coverage:
- Collision insurance covers the damages to your vehicle that has been caused by you
- Liability insurance covers both property damage or bodily injury
- Comprehensive insurance provides coverage for damage caused by natural disasters, vandalism, theft, and any other unfortunate event that may not related to driving
Know the factors that could influence your rate
Auto insurance rates from different companies vary from person to person, and may be influenced by the following factors:
- Driving record – Your driving record and history will determine how high or low your premium rates will be. Those involved in previous accidents and traffic violations are considered high-risk, which means higher insurance costs.
- Where you live and drive – Individuals driving in bigger cities or urban areas can expect to pay more than those living in rural or suburban areas.
- Marital status, age, and gender – Younger, single drivers and male drivers generally have higher premiums than older, married drivers as they are perceived as more of a risk by the auto insurance industry.
- Type of vehicle – Driving a car with below average safety rating, based on crash test information, as well as luxury and sports vehicle may mean increased premiums as they tend to have higher claims.
- Prior insurance coverage – Another factor that may affect your rate is your prior insurance coverage. If you have cancelled premiums or non-payment of past premiums, expect to be charged with higher fees.
Inquire about possible discounts
If you’re insuring more than one vehicle, it may be worth checking with various providers if they offer discounts. Some insurance companies offer an array of discounts and benefits for coverage on multiple vehicles, as well as for additional products such as installation of safety devices, and even bundling with home insurance policies.
Always review the insurance company’s track record
While the rate of your coverage is an important factor, it shouldn’t be your only reason for signing up with a particular provider. Always check the company’s track record first. Go for a provider that has a good claim settlement ratio, meaning one that has a good record of settling insurance claims in a quick and reasonable manner. Also make sure if they are available 24/7 so you can reach them out when you need to.
Car insurance is a costly, but necessary, part of vehicle ownership. With a little planning and preparation, you can easily get the coverage that perfectly suits your needs and budget.