The Complete Guide To Car Insurance: The Types, Benefits And Process
The process of acquiring a vehicle is never complete unless the owner is insured. The cover is a vital buffer to the unexpected losses incurred in any accident. The two main forms of car insurance policies are third party and comprehensive insurance.
Third party insurance policy is an essential requirement by law. As the name suggests, it only allows for the compensation of the intermediary after a loss. The third party, fire and theft cover is a variant of this policy better suited for the holder. Unlike the former, it remunerates the owner only in the event of fire and theft. The other party is also compensated for these and other accidents.
Comprehensive insurance on the other hand is better but more expensive. It compensates the policy holder and the other party. It does not consider who caused the collision. Services like roadside assistance and towing may be included in the premium but at an extra cost.
It is recommended that new vehicle owners shop thoroughly for a good insurance premium. Not only does this give them access to plenty of information, they can also come across great deals.
After a preferred premium is noted, the next step is obtaining a quote. The vehicle owner needs to visit the insurer. There, the insurer has to get a good history from the car owner. The data obtained ranges from driving misconducts to the mileage and condition of the car. The quote is awarded once the insurer has enough information. The vehicle owner is then given an insurance policy.
The new holder can now pay for the insurance service. This may be in form of installments or as a single payoff amount. One can sometimes pay a policy excess to settle a claim. It may be voluntary, or demanded by the insurer as a compulsory excess. If the real cause of an accident is later established and the owner cleared of any fault, a refund follows.
The insurance policy is renewed annually in most cases. This entails updating the insurance certificate with the holder’s details and a new expiry date. Sometimes one may wish to change their policy before the renewal date. A visit to the insuring firm is recommended. There, the vehicle owner is advised on the process and available services they may prefer. After changing, the costs incurred may be different from prior ones due the new services rendered.
As with most services, saving on car insurance is possible. A holder can do away with insurance services they do not need. Vehicle owners are encouraged to pay for premiums all at once rather than in installments. Finally, driving a well maintained vehicle minimizes the risks of breakdowns and accidents hence the reducing the need to pay policy excesses.
You can find details about the reasons why you should have car insurance coverage and useful tips on how to effectively compare car insurance policies on our website, now.