|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
Vehicle Insurance has become costlier with the insurance regulators hiking the premium rates by as much as 30 to 40%. Even for high-end cars, which are ideally considered safe and more eco-friendly, fuel-efficient, premium rates have increased to around 25-30%
Every year, IRDAI revises premium rates, taking into account the number of claims made and loss ratios for the insurers. Third-party car insurance is mandatory for all vehicles plying on Indian roads and covers liability that arises due to third-party claims because of accidents, health damage or loss of life.
While it is the minimum format of coverage that Indian traffic law mandates, it is still advisable to purchase a comprehensive cover that will not only cover third party damage but also cover damages to your own car, and driving members. Due to the ever expanding industry buying an appropriate insurance policy has been quite a daunting task because of the several structure, deal, and offers. For this, we do research using comparison tools but end up buying a wrong policy which might be irrelevant for your car cover.
The article gives few tips to consider during Vehicle Insurance purchase:
Comprehensive policies usually cover the losses done because of an accident, a storm, flood, fire, and theft, etc. They would also cover the damages to third party property, life or physical damages. But the coverage amount differs in terms of car make and model, engine capacity, year of purchase, income source, and other government mandates. Therefore, you can sit with your car expert and discuss these factors to come up to a certain consensus on the cover amount.
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
Agreed or Market Value
The value of the car stated in the insurance certificate is the maximum amount your insurer will agree to pay during claims. Ideally, it's decided upon Insured Declared Value which is the current market value of your vehicle being fixed by the insurer and provided in case of theft or total loss of the vehicle. The value is determined at the time the loss or damage incurred. It reflects the amount your car would fetch in the market given its mileage, model, make and model, engine capacity and year of purchase.
Any modifications in your car will tend to increase your Vehicle Insurance premium. However, if you fail to disclose this to the insurer then they might not pay for insurance claim towards repair modifications. And just in case your car is stolen your policy will be invalidated.
Every insurance firm offers different policy compared to its competitors to lure potential customer or retain the existing ones. However, there are many exclusion clauses that may apply to specific claims compared to overall policy structure being outlined in terms and conditions. Therefore, it's advisable, to read these documents carefully and then approach a company for buying your car insurance policy.
Avoid Direct Debit
Many people wish to spread the cost of insurance premium as it is less stressful in the long run. However, insurance companies charge higher interest when customers choose to make insurance payment monthly wise. You can opt for zero purchase credit/debit cards to pay for it.
An ideal Vehicle Insurance policy would be the one that offers you the benefits of medical payments coverage, collision cover i.e. actual cash value, auto coverage, physical damage cover and injury cover at optimum costs.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|