Thursday, July 5, 2012

How to get your car insured right

The thing about insurance is that when you buy it, you really hope that you will never actually use it. But in case your insurance situation comes into force you will immediately understand why getting the right type and amount of insurance coverage is crucial.

Decide on your insurance needs

It's impossible to prevent unforeseen situations. That's why they are called unforeseen, and insurance is just the thing you need for such circumstances. Regardless of the actual type of insurance you're looking forward to buy, whether car insurance or life insurance, there are universal factors you can use in order to define the approximate amount of coverage you will need. Look at the things you have and you want to insure, take the base value and start from there. In case of car insurance your car and its value is what you have to think about at first. Sit down with your insurance agent and discuss the amount and types of coverage your vehicle will need according to its condition and value.

Shop around

Again, it doesn't matter what type of insurance you want to buy. The rule of shopping around applies for all insurance products and car insurance is not an exception. There are a lot of insurance companies out there on the market and they all have their conditions and rates waiting for the customer. Some might say that the offer is pretty much the same all across the market but it's erroneous to say that. Just spend some time on getting insurance quotes from different companies and you will instantly realize that the offer is quite diverse.

But don't forget to compare similar policies. You may find a chap car insurance deal that will carry too little coverage for your auto, and you definitely don't want to save on the coverage you need. The price alone shouldn't be your guide. Compare the policies according to the price/coverage ratio and choose the offer that has the most advantageous one. Also make sure that the company you buy car insurance from is reputable. You can check this at your state's insurance department and insurance forums on the web where you can also get independent feedback on most insurance companies in the US.

See what's in the bundle

Bear in mind that an insurance policy is a legal document that will certainly be filled with technical jargon than an insurance novice may have a hard time understanding. However, you should definitely read it from start to finish in order to see what you're actually paying your money for. Pay attention to the following elements of the policy:

* The object of coverage
* When the coverage does apply
* When the coverage does not apply
* The term of coverage
* The amount of coverage
* The price for coverage you have to pay (the premium)
* The procedure of receiving coverage

If you have any doubts or feel that you don't understand something you should definitely ask an insurance expert to explain these things to you before signing the policy. The devil is in the details and you might want to spend more time on reviewing the policy you are interested in, especially if you're looking for cheap car insurance. There may be some tricky exceptions or additional payouts hidden in the document and you really don't want to find that out when filing a claim, right?

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