What is a car insurance?
We spend so much time looking and researching for the latest models of a car, the latest features it has and its lovely colors. But how much time do we spend to think about the car’s insurance? Car insurance or auto insurance protects the car and the person in the car from accidents, theft or any other disaster. The insurance provides the owner with a financial protection. It can also provide third party insurance such as for co-passenger or driver and their cars. A car insurance means the driver can drive peacefully on the road but responsibly. Having a car insurance is compulsory by law in some countries. There are thousands of companies that offer insurance. So how do you select and choose the right one? An ideal policy would be a low cost auto insurance with sufficient benefits.
How Car Insurance Works?
First of all choosing the right type of insurance is very crucial. While purchasing an insurance the owner is required to choose an amount he is willing to pay against any loss takes place. That amount chosen determines the annual premium the owner will pay for car insurance. The higher will be the amount chosen to be deducted, the lower will be the annual premium.
In case of an unforeseen incident, the insurance company will pay a part of the loss incurred. The owner will pay only the deductible amount and the rest will be paid by the insurance company. Choosing a deductible amount is the most vital part of a car insurance.
What Does Auto Insurance Cover?
- Damage or loss due to natural calamities like flood, landslide, earthquake.
- Damage or loss due to man-made calamities such as theft, riot, damage while in transit via rail, water or road.
- Personal accident
- Legal liability from third parties includes protection against any legal liability for damage that has caused a third party permanent injury or death.
A car policy may also include the following add ons:
- Engine protection
- Tire protection
- 24/7 roadside assistance
- Key and lock repair
- Electrical accessories
- Liability cover
- Nonelectrical accessories protection
How to Get a Good Insurance Policy?
The best kind of policy is a low-cost auto insurance that can be achieved by the following steps:
- Gather insurance quotes from different companies that offer car insurance and compare all of them with each other by the prices they offer and the features they provide.
- Research about the insurance rates online on different websites and compare them too.
- Everything that the insurer declares to give you should be in written form.
- Discounts are eligible if you have a clean driving record, no accidents in the past or if your car has safety features already. Ask for these discounts if you are eligible for it.