Taking out car insurance is never fun, but it’s required by law and something you should not take for granted. Always consider the following when taking out a new insurance policy.
Always understand thoroughly what the policy does and does not cover. A strong car insurance policy must always meet the needs of the driver. If it doesn’t, simply request a new quote from the insurance agency. Never settle on anything short of what you need.
If you are purchasing a car and will have a loan on the vehicle, full insurance coverage is required. In fact, most banks and lending institutions require proof of insurance as part of the loan contract. You want to make sure you have coverage that will pay off what is owed on the loan in case you have an accident before you can pay off the car loan. Ask your insurance provider for details.
If you own a home or have life insurance, bundle your policies. That means you purchase all your insurance policies from the same provider. This can provide significant savings on all your insurance policies, and it simplifies your life because you are dealing with one insurance provider for all your needs instead of several insurance providers.
You may be surprised, but the location of your home greatly influences your insurance rates. Car insurance is more expensive in metro areas, because there is an increased risk in theft or vandalism. Also more expensive vehicles demand more expensive car insurance policies.
Teen drivers who are looking for a new policy under their parents are granted one, but keep in mind the premium is going to stay very high for the first ten years or so. Teen drivers sometimes are awarded a discount by the provider through “good student” discounts. The discount awards teen drivers with good grades a cheaper premium.
Ask your insurance provider what discounts are available to you on a car insurance policy. Many providers offer discounts for senior citizens, members of the military, women, multiple cars, multiple drivers and multiple policies. You might also be eligible for a premium discount if you belong to certain organizations, such as the AARP, or a specialty club.
Ask around and gather several different insurance quotes. There is going to be a provider willing to offer a cheaper rate than any other. If the coverages are equal or close, you have found a winner!
Contact a qualified car insurance provider, have them examine your situation, and answer any questions or concerns you might have.
Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Arica’s leading Insurance information portal.
Tags: car insurance, Disability Insurance, Finance Personal Finance, Household Insurance, Insurance, Life Insurance, loans, money, Personal Insurance, Property, property insurance