What do I need to know when buying car insurance?

Let’s explore some of the factors that could or may not make the policy suitable for you.

  1. High insurance premium


When you renew your car insurance policy, you may be surprised that the premium has increased compared to what you paid last year. There are many different factors that can make you pay a higher premium. For example, previous claims submitted for accidents resulting from your mistake, driving violations mentioned your official records, and other factors that may lead to higher insurance premiums. However, you do not have to renew with the same current insurance company when your current policy is nearing its expiration date. Comparing your options is the best way to reduce your cost. Whereas, changing a car insurance provider might not only give you a better deal, but it could provide you with better coverage.

  1. Modifications that have been added to the car


Adding some modifications to the car results in a set of variables. Although simple exterior modifications such as tires and custom coatings may not be an issue for an insurance company, other modifications such as a modified turbocharged engine and changes to the suspension and chassis system could put your insurance coverage at risk. Failure to notify the insurance company of these modifications could result in your policy being void and refusal to settle any other claims you file. Once notified to the insurance company, they may require you to pay an additional premium to cover the modifications or exempt them from coverage entirely.

  1. Depreciation rate


Cars decrease in value over time. This is a well-known rule in the automotive world. But how many of us are aware of how the insurance company calculates the depreciation rate of cars when estimating their current value? There are instances when its report is set higher than expected. So when reading the insurance policy, make sure you are aware of the exact formula the insurance company uses when determining the rate of depreciation for your vehicle.

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  1. Quality repair


Check with your insurance company about how repairs are carried out and your service centers. The company is responsible for providing high quality repairs, and preventing quality repairs. The document will also specify whether the vehicle will be repaired at an authorized auto dealership service center or a non-agency workshop.

  1. Time frame for submitting a claim


There is always a time frame for filing a claim with the insurance company. Make sure you know when you will need to file your claim. If you encounter any accident on the road God forbid, it is always best to file an insurance claim immediately or as soon as possible. Delay in submitting a claim may hinder the claim submission or rejection process.

  1. Data documentation


Most of us are notified of various policy details by an insurance company representative in person or a phone call center agent. However, Money Market.com stresses time and time again that you must independently review the benefits of insurance policies before choosing any of them. This is exactly why we allow users to compare features of insurance policies before making a purchase.


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