Buying car insurance can quickly become overwhelming, no matter how long you have been driving.
Everyone has questions about car insurance because it is very confusing and they want to make sure that they are getting the best possible deal.
Here are some questions that you should be asking when you go to purchase a new car insurance policy.
1. Does your policy cover other drivers?
One question that you should make sure that you ask is if the policy will cover others when they are driving your vehicle. The answer will often depend on what is referred to as permissive use.
If you let your friend borrow your car and they get into an accident, your insurance will likely cover it. However, this accident could go on your record and raise your rates.
If your car is stolen and wrecked, a comprehensive policy will typically cover this. You may check Direct Asia for more information.
2. Do I only need the stated minimum coverage?
The government has set minimum amounts of insurance that are required. You must carry at least this amount of insurance, whatever it might be. However, in many cases, it is best to consider a bit more coverage as you want to make sure that you are protected if you are in an accident.
3. Telematic devices
Many insurance companies are now offering telematic devices that can help you lower your rates. These are mobile apps or devices that are linked to your vehicle to track the way that you drive.
Careful driving earns you points and these points can help lower the amount of your premiums. Ask your insurance company if this is an option.
4. Is flooding covered?
Most car insurance policies will cover damage to your vehicle that is caused by a flood. It is important to ask this question when you are purchasing a car insurance policy, especially if you live in an area that is prone to flooding.
5. Financing
If you have a lease or your car is financed through a company you will likely have to carry both comprehensive and collision coverage for your vehicle.
The reason for this is because the financial institution wants to make sure that their asset is covered if it is in an accident.
You will want to ask your financer how much insurance you are expected to have on your financed or leased vehicle.
6. Type of car, how far you drive, and how do you use your vehicle
When it comes to how much car insurance you need, you should consider how much you use the vehicle and how you use it.
If you are commuting daily and putting a lot of miles on your vehicle, you will want to carry a bit more insurance because your chances of getting into an accident are increased.
The type of car that you drive is an important factor as well. If your car is not worth much you can carry a lower policy than if you are driving a more expensive vehicle.
7. Rate factors
You will want to ask your insurance agent what things are going to affect your premiums.
Some companies offer a forgiveness rate where they will forgive a certain number of claims each year. Some of the other things that can affect your rate are your insurance score, gender, age, violations, and accidents.
8. Are there any discounts available?
One mistake that many people make when shopping for car insurance is not asking for any type of discount.
There are many types of discounts available including bulk policy discounts, good driver discounts, good student discounts, pay in full discounts, and driver training discounts.
Make sure that you are receiving all of the discounts that you are eligible for.
9. Possible endorsements
Another thing that you might want to ask about is additional endorsements that are available. Some of the more popular endorsements include roadside assistance, rental reimbursement, replacement cost coverage, and guaranteed asset protection.
10. Research
The most important thing that you can do when shopping for car insurance is to make sure that you are doing your research. Get quotes from several companies and look over the policies closely.
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