Car insurance is what you need to protect you and family from any kind of a loss. It has so many options that might seem complicated to some.
In this informative article, you will have an overview on whatever you need to know about car insurance.
1) Comprehensive cover: This type covers the cost of repair or replacement of your vehicle whether you are at fault or not.
2) Third-Party Fire & Theft cover: this type covers the loss or damage caused to your car if stolen and the damage your car caused to other people’s properties.
3) Third-party property cover: It basically covers the damage you cause to other people’s vehicles.
4) Compulsory third party insurance (CTP): It is a must in Australia as it covers the damage made to other people in an accident whether they are drivers or pedestrians.
5) Additional coverage options: Your insurer may include this as an optional insurance besides the standard cover provided. It might include the cover of new replacements and the choice of repairer.
Agreed Vs. Market Value
Agreed Value is the value both you and the insurer agree on and it remains fixed until the renewal date.
On the other hand, the Market value is the value of the car at the time of the claim.
In the market value, the insurer put in consideration the condition of the car based on its age and model.
It might be a bit of a hustle to you, therefore you should contact your insurer before taking an action.
The choice is up to you after all, but rest assured as both of them put your safety first.
Excess is the amount of money you are going to pay when you are buying car insurance.
The insurer will include in the certificate of your insurance on the day of the claim.
There are three types of excess you should know before heading to the car insurance company;
- Basic excess: This is basically the minimum payment that you will pay on the day of the claim.
The excess will be included in your insurance certificate.
2) Voluntary excess: It is an additional payment that both you and the insurer agree upon.
It usually reduces the financial risk carried by the insurer.
3) Age (inexperienced driver) excess: This is for the inexperienced drivers that are under 25 years, therefore the insurance company applies a higher excess automatically.
Tips for buying car insurance
Before heading to an insurance company, you put in consideration some points that might be in great help.
Here will get you some tips that will get you close to understand everything before going to purchase car insurance.
1) Establish what coverage you require
2) Compare coverage quotes
3) Understand the benefits of car insurance
4) Know your vehicle and your driving history
5) Determine how much you can afford
6) Review insurance company credentials
7) Review the fine print of your policy
8) Find out how to lower your premium
9) Review your car insurance policy at regular intervals
Car insurance is now a better way to save money and protect your own property.
It is highly recommended if you think about it carefully as you do not want to pay much.
If you have an old car you should not pay more than the price of it to ensure it.
Therefore you should ask for a more suitable type of insurance before managing to purchase it.
Notwithstanding the benefits of car insurance, you should be more careful whilst driving in order to save your and others’ lives.
For the sake of your safety as well, inquire about all the important aspects your insurer provide to help you.