The technological advancements in the manufacturing sector have made car fabrication and manufacturing much easier and cheaper. Every family next door owns a car and new drivers are added to the roads every minute. The roads now are more prone to accidents as amateur drivers are distracted while driving and moreover, the number of cars are more than that the roads may accommodate. This makes the purchase of car insurance mandatory as it protects the car against damage and also ensures that people affected by the accident get the required medical services. But in order to ensure that the car insurance policy delivers the best benefits and is pocket friendly to the consumer, it must be evaluated thoroughly.
Types Of Car Insurance
A consumer must select the type of car insurance as each policy offers different benefits and comes with a different price tag. Car insurance is not a one-time policy that once enrolled offer benefits lifetime. A consumer needs to renew car insurance after a certain period of time, generally 6 months or a year. At the time accident or theft, the consumer will be benefitted only if all the terms of the policy were well evaluated at the time of purchase. There is a provision available with the consumer to enroll for a policy offering better benefits than the one which was purchased when he bought the new car.
Insurance policies are mainly classified on the basis of the benefit it offers. It is legally mandatory in all nations for the owners to enroll for any one insurance policy available.
The most basic insurance cover available for cars is Liability Coverage, which holds the person responsible for the damage caused to the property or injuries incurred by others in an accident caused by him. It is a legal requirement in most countries.
Another type of car insurance available is the Collision Insurance, which enables the consumer to avail the benefits of getting his damaged car repaired or even replaced in some cases. The vehicle of another person is also covered against damage.
Another motor insurance available is Comprehensive Insurance that includes damage protection against accidents due to animals or accidents due to weather conditions. Insurance policies like Uninsured and Under insured motorist insurance provide extra benefits in case the driver is not insured or is under insured. Policies like Medical coverage and Personal Injury protection offers claims for medical expenses done due to damage by accident. In case the car is stolen and was under loan then Towing and Labor Insurance Policy are beneficial. Many other insurance policies are also available with different benefits.
Selection Criteria For Car Insurance
Among all the available options, a consumer must follow a selection criterion in order to ensure that the right benefit is offered to him and policy premium paid is also as per the requirement. Criteria may include the type of car as different policy is required for different cars, the purpose for which car is used, that is, either commercial or personnel, must also be taken into consideration before selecting the car insurance. Cost of a car should also be taken into account as the expensive car comes with expensive spare parts and services which is included in the insurance policy. This would be beneficial to the consumer in the long run.
The consumer must also keep in mind that the policy he is selecting must be in accordance with the usage pattern of the vehicle. If the car is less frequently used and is mostly parked, then liability insurance is a better option over other types of insurances.
Policy selection also largely depends upon the income of the consumer. If the consumer is likely to be affected by the medical expenses and damages caused by the car, then it is always better to enroll for an insurance policy covering maximum damage control so that the policy premium paid in parts to the company helps the customer at the time of the accident. In this case, the benefit can be received in one go which might not have been possible without the auto insurance. If the neighborhood is prone to theft or the car is parked at a far off place from the home of the owner, then the insurance policy selected must include the anti theft benefits so that police complaint can easily be made and the vehicle or an equal amount of the vehicle may be recovered.
People who are in need of a vehicle most of the time must look for an insurance policy which provides with the rental cover over the period when the car is in the garage for necessary repairs. The insurance policy bought must also be renewed at regular interval of time before the due date, or else, it may cause penalty or termination against the insurance benefits. The new drivers must enroll for insurance policies covering maximum damage protection.
Car insurance of one kind or other is legally mandatory for all cars in all nations. In the time phase where medical expenses are becoming more expensive and service spare and repair of cars is heavy on the pocket, the right insurance policy must be selected. The more benefits you desire for your auto, the more you need to pay keeping in mind the decision you would be making. One of the main reasons auto insurance is becoming more expensive is due to choices made by the consumers that are at times unnecessary. The best criterion to enroll for the best policy is to opt for the best suitable option rather than the most expensive one. Analyze your needs and compare with the offerings by various companies and pay regularly for an insurance policy that is beneficial when needed.