Cars require substantial investment and are therefore a huge part of your assets. Owing to their price, they need to be taken care of and insured. While auto insurance is mandatory in most countries including Canada, insuring something as expensive as a car is always a wise choice. Insurance would mean that if your car is damaged or needs to be repaired, you wouldn’t have to drain your pocket to get it running again.
However, there are certain things a first-timer should know when choosing an auto insurance policy. Some basic tips will help you get a better deal from the insurance company and that’s exactly what we aim to accomplish with this article.
Also, if you want to find out the best deals on car insurance in Toronto, you should visit Surex’s website. They provide a wholesome experience for all insurance needs.
#1 Comparing Quotes
The first thing that you need to do to choose the best car insurance is to compare quotes online. This basic research will give you an idea of what rate you should expect when you visit an insurance company and also protect in case they are trying to fool you.
Just keep in mind that when you are comparing the quotes online, you should be checking the policies based on the same criteria. This includes comparing a similar type of policy with the same number of benefits as well as the same coverage term.
#2 Check What Your Insurance Plan Covers
A non-debatable aspect of buying the right insurance policy for your car is to check what it is covering. The best car insurance will cover a variety of aspects of your car. For example, collision coverage will cover your car’s repairing charges in case it gets into an accident with another car on the road.
Similarly, liability insurance (which is mandatory in Canada) will cover the charges of property damage as well as bodily injuries in case you hit someone else’s car on the road.
There are several add-ons to choose from so that you can get extra coverage on your main policy. There are plenty of options and choosing one can be overwhelming. But focus on what you need to avoid making unnecessary investments.
#3 Cashless Facility
This facility comes in very handy in case you urgently require cash and do not have the time to visit your insurance company to settle the claim and withdraw cash.
For example, let’s say that your car was hit by another car on the road and you’ll need $500 to repair the damage. Suppose the sum agreed upon after settlement with the insurance company is $400. Under a cashless facility, you won’t have to withdraw the money and pay the garage in cash.
In fact, your insurance company will directly contact the garage and pay them while you will have to pay the remaining $100. More often than not, only reputed companies have these facilities as there’s a need for tie-ups with local garages and brands here.
#4 Choosing A Reputed Brand
No matter what service you are opting for, the reputation of a brand is very important, especially in finance-related services. So when you are opting for an insurance company that will take care of your car in case it runs into an accident, you have to choose a company that provides top-notch services.
This includes customer-friendly policies, affordable deals, an array of benefits and add ons, and smooth customer service. All of these together define the brand’s reputation.
Hence, whether it is through online reviews or on the advice of your family and friends, evaluating a brand’s reputation before proceeding to use their service is very important.
#5 Dealer-Offered Insurance
Often, car dealers have tie-ups with insurance companies. Hence, your dealer may try to convince you into buying car insurance from a particular insurance company.
However, you reserve the right to opt for a different insurance company in case you do not like the policy offered by the first insurance company.
Do not let your car dealer convince you otherwise. There are high chances that the quotes given by that company will be higher because they might include a commission for your car dealer.
#6 Discounts On Policies
Everybody likes discounts when buying a product or service. Since third-party insurance rates are standardized, you might not be able to get a significant discount. However, there are ways to reduce the premiums of other comprehensive coverages.
For discounts on comprehensive policies, you can opt for anti-theft devices, deductibles, and strive to provide a clean driving record. Basically, the price of your premium depends on the risk taken by your insurance company.
Anti-theft devices as well as deductibles reduce the risk on the company’s part and hence they agree to reduce the price of your premium as well. It’s a win-win situation for both you and your insurance provider.
#7 Claim Settlement Ratio And Testimonials
The claim settlement ratio is the ratio of the number of claims raised to the number of claims settled. This ratio provides you with a rough idea of the company’s efficiency in settling claims.
However, this shouldn’t be your only evaluation criteria because often the total number of claims raised also includes fraudulent claims or claims raised without proper documentation.
Hence to conduct a foolproof evaluation, you should also check the reviews and ratings of such companies online. The reviews will give you a peek into a customer’s first hand-experience which provides sufficient data about the company and its service.
When you are investing a huge chunk of your earnings into a long-term asset like a car, you have to insure it. Having discussed some of the tips that’ll help you buy the right car insurance at the right price, the final call rests on your worthy shoulders.
The above-mentioned points will ensure that you don’t get tricked into buying unnecessary add-ons or a policy that isn’t suitable for your needs.