Basic Checkpoints While Taking an Auto Insurance Coverage


Most of us often do not pay much thought to the auto insurance coverage we are going for. The law mandates everyone to at least have a liability insurance coverage which will pay for the damages and losses caused to the other party due to the policy holder’s fault. However, there are a lot of other areas, where auto insurance coverage is important and one needs to give it a serious thought before deciding which policy to go for.

Determine Your Need

The auto insurance coverage you take should always be in sync with your need. If you use your car extensively for commuting not only to office, client meetings and various places inside the city but also out of station destinations, then you need collision damage insurance, accident and medical expenses insurance, liability insurance, roadside assistance and all the other forms of coverage that cover high risk in case of excessive car travel. If you do not use your car a lot, you might still need comprehensive coverage which takes care of car damages caused due to natural catastrophes like floods, cyclones, earthquakes and other unforeseen events like a coconut falling on the roof. Hence it depends purely on how much coverage you genuinely need.

Check all your advantages

While taking an auto insurance coverage you must definitely look at all those aspects which can get you a discount for auto insurance. Many people ignore a lot of factors which could have helped them get a better deal. If you have no traffic violations in your name for a period of 3 -5 years, if you have a long driving experience, if your credit rating is very good, if your grades in college were very good, if you use public transportation as much as possible and if you do not have any accident claims in your name, you can claim discounts on the insurance premium from the providers instead of reducing your coverage to save money. Even geographic locations, age and gender influence the final insurance rates that you pay.

Shop Around for Multiple Policies

It is a bad idea to commit to the first policy agent who comes your way. As far as information is concerned you are overpowered through internet. All you need to do is shop around and see what is available. You can make a list of the top insurance companies you want to deal with and which have credibility of paying the claims quickly enough. You can then draw up the rates which they charge for the same coverage. The company that charges the least for the coverage you need shall be the automatic choice. In this process you can also take the help of online insurance rate calculators which will calculate for you the premium you should pay to get the coverage. With all these rates at the back of your mind you can still negotiate with the insurance provider for the policy rates.

Feel free to change policies for better rates

Since you are the customer you have the right to the best prices and the best services. If you feel that your insurance provider is not giving you a good deal, then you can change your policy to some other company which is providing you better coverage for the same rate or same coverage for a lower rate. This also gives you the power of negotiation.