Car Insurance 101: a guide for first-time car buyers
May 22, 2021 00:57
Buying a new car has many advantages. For starters, if you are a commuter and you live outside of the city where you work, having a personal vehicle is a convenient option. Even though you might spend some time in traffic at rush hour, at least you'll be doing it out of the comfort of your car and not in highly crowded public transport. And let's not underestimate that new car smell and the exciting feeling you get when you manage to buy the car of your dreams.
Once you bought the car, you need to be responsible and acquire an insurance plan. When you own a car, this is a legal requirement. But before doing that, there are certain aspects you need to consider, like researching car insurance offers to get the most suitable and reliable plan for your new automobile. So, as a first-time car buyer, it might be helpful for you to read the following guide for getting car insurance.
Consider the factors that affect your insurance plan
First and foremost, before jumping into buying a car insurance plan from the first company you come across, it is crucial you do your research. What's more, it is vital you are aware of the aspects that can affect the price of your premium, as the insurance quotes you get are dependent on certain factors.
Credit score: Based on an analysis of your credit history, which shows a record of your debt repayments, you will have a specific credit score. Insurance companies will take this into account when they estimate the price of your insurance plan. If your creditworthiness is considerable, then the premium will be set accordingly.
Driving history and profile: Depending on your driving history, the insurance's price might be higher or lower. For example, if you have a history of an accident that happened from your fault, then the insurance premium might cost more. This happens because insurance companies need to conduct a risk assessment to conclude whether the driver is high or low risk.
Car type: An essential aspect that many people, especially first-time car buyers, might not consider. But before you get an insurance premium, it is vital to know that some cars are cheaper to insure, and the prices vary according to the car type. So, in case you haven't yet bought your vehicle, it would be best to begin by checking what are the cheapest new cars to insure.
Weather conditions: If you live in an area where the possibility of extreme weather conditions is high, then this is another factor an insurance company will consider when giving you a quote. This happens because if this is a reason why customers have made regular insurance claims, then companies may have to charge more to cover this risk.
The reliability of the company insurance
One vital thing you need to do before deciding on a car insurance company is to check how reliable it is. A way of doing this is by read online reviews and see the company’s ratings. More often than not, reviews show you best how reliable a company is and whether its services are top-quality. Not only this but reading other’s personal experiences can offer insightful and valuable information that helps you reach a conclusion.
Based on recommendations from past or current customers, you are able to make a more informed decision, together with thorough insurance-related research that gives you relevant information and comparison quotes and offers. So, look for the best-rated insurer if its reviews clearly reflect it is reliable and best suited to match your needs and budget.
Good Customer Service
In a highly competitive environment and with many insurance companies battling to offer high-quality services, having good customer service is of the utmost importance. If you as a customer feel you are offered the needed help and advice, then you might consider staying with the company even though there could be a cheaper option. So, compared to an insurance company that offers better services price-wise, you might value more no-claim customer support and fast response service.
Recent research has shown that good customer service is vital when recommending a company, and people are more inclined to recommend it to others. What's more, 93% of customers are more prone to stay with a company if it values customer support and focuses on providing an excellent service. So, if you see good reviews relating to an insurance company’s good customer service, you might want to give proper attention to it and check whether it is a good match for you and your newly purchased vehicle.
Check insurance coverage
Last but definitely not least, before you get car insurance, make sure the premium includes the best coverage. To be able to decide on the most suitable insurance plan for you, it is crucial you check the types of car insurance.
Among these types, there most known one is liability coverage, which refers to bodily injury and property damage coverage. This is of the utmost importance, as it covers medical and property expenses, in case there is an accident you provoked. Additionally, there is collision and comprehensive coverage. These types of insurance are related to car repairs in case you hit another car or an object and if your vehicle is subject to damages due to vandalism or fire.
Insurance is mandatory – but can you cut costs?
One thing is for sure: it is a legal requirement to have an insurance policy for your car. But, for some people, buying a new car has been a challenge financially, so having good quality insurance can be an added expense which they can’t really afford. In this case, there are some things that you can do to lower the costs of your car insurance. For instance, if you are dedicated to keeping a good credit score and your history shows you are reliable, this can positively affect the price you get from some car insurance companies.
Besides this, there are certain offers and discounts which companies offer to the car owner. If you have a clean driving history, with no incidents or at-fault car accidents, the insurance company might give you a discount. Moreover, before your policy is set, you could pay a higher amount of deductibles. Doing this will lower the insurance costs.
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