4 Things to Consider Before Buying a Car Insurance Policy

If you’re looking to purchase a car insurance policy, it is integral to first do your research before arriving at a final decision. Owning a car insurance policy is a necessity for every driver, as it provides many benefits. It also serves as a safety blanket for any accidents or liabilities. Unfortunately, many individuals resort to making hurried decisions and as a result, they end up with policies unable to provide reasonable benefits for the holder.

To arrive at the best possible car insurance policy, due diligence must be taken. This means researching, comparing, and asking questions, as doing so will help you arrive at a well-informed decision.

With that being said, here is a lowdown of some of the most important aspects of a good car insurance policy:

1 – The type of car insurance policy

As you determine which policy is best for you, there are a few basic features you need to consider. This includes the type of insurance, insured value, premium, and those covered. Policies can also be distinguished based on specifics such as liability coverage, medical payment, personal injury, and collision coverage. Car insurance policies, however, can be broadly categorized into two types:

Basic/ Third party car insurance policy: In case the policyholder meets with a car accident, this policy only covers damages to others.
Comprehensive car Insurance policy: Unlike the basic policy, this provides more protection to the policyholder as well as others involved in the accident.

2 – The insured value (IV)

The insured declared value (IDV), also known as the insured value, pertains to the amount the individual needs to pay for a policy. Consumers are highly encouraged to choose one that is both affordable and suitable for their needs. Many buyers rush into decisions, often ending up with a policy that does not meet their expectations. Assessing your needs is paramount, especially when it comes to evaluating the IDV. Consider the types of covers included in the policy, along with any riders and the premium payable.

3 – Deductibles

This aspect of the policy is crucial, as it contains all the damages payable by the policyholder. In other words, this is where you’ll see your value for money. A higher deductible, for instance, means that the insurer pays the remaining amount of damages in circumstances of accidents. Remember that a higher deductible also leads to a lower premium.

4 – Additional features

Insurance is a booming industry today, and to attract more customers, they provide special facilities that cater to specific needs. Breakdown assistance, for example, is an aspect of a policy where the insurer provides the covered with a helpline and roadside assistance in case of a breakdown. Others also offer simple coverage on car key loss, as well as more comprehensive ones like personal accident cover.

If you wish to open your doors to purchasing more than just a basic car insurance policy, make a list of all your desired features before purchasing. It’s also advisable to sit down and take to a trusted advisor, as they will help you better understand what the policies hold.

The Bottom Line

A car insurance policy is a necessity, as accidents happen without warning, even if you’re extremely careful on the road. It serves as a safety net for any liabilities and expenses, so it’s integral to choose one that best suits your needs and requirements. As you weigh your options, keep this list in mind!

If you require the assistance of an insurance broker in Henderson, NV, get in touch with Semel Risk Consultants today! Our professional team will help you identify which car insurance policy is best for you. Don’t hesitate to reach out for help!