There are many insurance companies out there offering different car insurance solutions. But that doesn’t make buying car insurance any easy. If anything, the sheer availability of options makes the whole process complicated and confusing.
First of all, you don’t know the insurance company that will provide the coverage that is the right fit for your car insurance needs. Secondly, you don’t know the coverage and add-ons that are appropriate for your case.
However, the power is still in your hands and every insurance agent broker will do anything to make you sign up with them. To help you choose the right coverage, here are the important questions to ask the brokers before making a decision.
Question #1 – What Types of Car Insurance Do I Need?
Of course, I expect that this should be your first question. Many new car owners do not ask the right questions and end up with the wrong insurance coverage or even paying for unnecessary add-ons.
As a new car owner, there is a wide range of options available to you. First of all, there is the mandatory insurance cover which the minimum coverage that is required by law before you are allowed to drive a car. This usually sets a minimum amount for third-party liability and other coverage such as medical expenses and third-party liability.
Another important add-on is the collision insurance that covers the cost of repairs to your car in case of damage. the good thing about collision insurance is that it does not matter whose fault it, the insurer is obligated to cover the cost after you have paid an agreed deductible amount.
You can also opt for comprehensive insurance to protect you in the events cases that are not accident-related, some of which fire, theft, vandalization. Although this provides an extra layer of protection for you, it is optional.
Question #2 – What’s My Risk Assessment?
Your risk assessment will determine your insurance premium. This takes into consideration factors like your age, driving record, gender, and even occupation. Every company has its way of determining your rate and you should interview different companies to land a better deal.
A clean driving record or certain safety features on your car might help you to get better rates and can even earn you some discounts
A good broker can also help you with this if you don’t want to go through the stress.
Question #3 – Who Is Covered To Drive My Car?
Chances are that your partner, children, or even a friend will be driving your car once in a while. But many people neglect this aspect when buying car insurance and often run into issues when filing claims.
If you do not consider this factor and your insurance fail to cover for accidents resulting from a third party, you will not receive a dime should there be such issues. So, make sure you consider who else will be driving your car and get coverage that covers them as well.
Question #4 – What Happens If I Make a Claim?
A good broker will help you identify an insurance company that allows claims to be made any time, any day of the week. But before you proceed, make sure you ask questions about how the chosen insurance company processes claim when an accident occurs. It is the duty of the broker to explain everything to you.
Question #5 – What Is the Deductible Amount?
The cheapest isn’t always the best. Another reason to get the help of a good broker. Having insurance coverage and paying your premiums as at when due does not mean you won’t be required to pay a set of deductibles should there be an accident. As a matter of fact, you are expected to pay the deductible amount before the insurance company comes to your rescue with the remaining cost of the repair.
That said, be wary of overly cheap car insurance packages. From experience, we have found that car insurance solutions with lower premiums often come with higher deductibles. So make sure that your insurance broker explains this aspect of car insurance to you.
Have more questions about buying car insurance? Send us a message and one of our professional brokers will be in touch with you as soon as possible.