Car insurance rates are going up and up. Not all families can easily afford this, so health insurance became something we had to deal with. If you don't do your homework and take the time to learn about the different types of insurance available today, car insurance will be a minefield for you.
Each company has its own set of rules. Comprehensive insurance basically gives you full coverage, while third-party insurance protects you if you damage someone else's car.
After you decide what kind of insurance you want, think about whether you want to insure your car based on its agreed value or its current market value. You might think of your car's agreed value option as a special model because it lets you add extras. When you choose the market value option, the insurance company pays out the amount that the car is worth at the time of the accident. This amount could be different than the market value that was written into the policy when you signed up for it, because the value of the car has gone down over time.
Once you know what kind of cover you want, you can choose the smaller, more difficult option. You may want to think about things like the amount of the deductible, whether or not you want to choose the repair shop, whether or not you want to borrow a car if yours is stolen, whether or not you want the policy to cover the car for business use, whether or not your car will be fixed with only genuine spare parts, and so on.
Group General Manager for Western Australia and the Northern Territory for the Australian Insurance Council, Daryl Cameron, said that price is the only reason 85 percent of people buy insurance. People who don't read their policies carefully could get hurt by this. He also said that if you lie on your insurance quotes, your insurance company might not pay out.
"When getting a policy or renewing one, it's important to tell the insurance company everything they know about the car or anyone who will be driving it. You must tell the insurance company if anything changes that could affect your policy. It is very important to remember that you have a duty to tell the truth "Mr. Cameron said.
Watch out for the traps that get many drivers who don't see them coming. Ask as many questions as you can to find out what's going on. After all, it doesn't hurt to ask.
When you think about car insurance, there are a few things to keep in mind. First, when you're looking for car insurance, do your research, ask around, and take your time. Second, choose a plan that fits your needs. Third, choose between market value and agreed value. Make sure you know exactly what your insurance covers. Know what things the policy doesn't cover. When making a claim, you should also know what the excess is. Tell your insurance company about anything that might change how your policy works. Find a way to pay that works for you. Find out if you can keep your no-claims bonus if you file a "at-fault" claim. And finally, keep in mind that the cheapest isn't always the best.
Make sure you know what the policy will cover, and don't just compare policies based on price. Not always does cheaper mean better.
