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Car aficionados can look forward to 2014, a year that will see a flurry of releases, in contrast to the slowdown experienced in the previous year. Expect to see discounts and freebies thrown in with every purchase of a new model. Although interest rates seem to be getting higher, experts feel that this should prove to be a good period for buying a new car.
With the responsibility of buying a new car, comes the stress induced from car insurance formalities. Buying a car can be a daunting task for even the most seasoned experts. Insurance companies have a myriad of different policies tailored to specific needs of various buyers. In fact, the amount of premium you end up paying can depend on many factors: some of these include the type of car, driving record, driver’s attributes, number of drivers, location and what the vehicle is used for.
Depending on the above, buyers can choose what types of coverage will be most applicable to them. Some examples of coverage types are listed below:
- Third party liability - This type includes coverage for accident-caused bodily injury, such as medical expenses and lost income, as well as for property damage, such as damages to the vehicle involved in the accident and property damaged by said vehicle. In some cases, this coverage also includes legal costs.
- Fire and theft – Certain policies include coverage for damages to the insured vehicle that are not on account of an accident. The types of damages comprehensive insurance covers include loss caused natural causes such as rains, floods or earthquakes, as well as acts of vandalism, fire or theft.
- Fully comprehensive policy – This type includes both third-party as well as fire and theft types. Some policies even include additional perks such as cover when you drive another individual’s car, presuming their insurance does not already cover you. This option is the most expensive and hence provides the maximum number of features.
When it comes to choosing which policy is best for your budget, it is important to properly assess the market value of your car in in its current form. Cars that are older and not well maintained will cost more to insure, in which case it would be best to opt for insurance that covers only third-party liability. Furthermore, most policies make provisions to reduce premium. For example, paying a voluntary additional excess to the first amount can reduce the premium by up to 30% in some cases. Installing anti-theft devices is another lesser known means by which premiums can be reduced. Be sure you contact your agent for all necessary doubts because the best way to get the most out of your car insurance is to always stay informed.
Disclaimer: The information provided here is to be taken for reference purposes only and not to be used for any medical, legal or other professional use. For any insurance product, please refer the policy terms and conditions before concluding a sale.