5 Things To Consider Before Buying Car Insurance Policies

By mashum.mollah

May 4, 2019

car insurance policies

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Different cars cost differently when it comes to paying insurance premiums? Have you ever wondered the reasons behind such a difference? Always keep in mind that new cars always cost higher when compared to their older counterparts.

However, you will also need to focus on the services that the companies are providing along with it. Moreover, do not forget to read the hidden clauses and company rules whenever you opt for car insurance policies. So make sure to shop for the best car insurance companies to get the best rates.

Such as, now there are a lot of companies which are giving discounts on monthly servicing and some give a discount for a year. In this case, you need to give a look as to how you can save expenditure money on your car by getting it properly insured. There are a number of reasons to justify this scenario.

1. Luxury cars tend to have higher insurance premiums

First of all, an auto theft of some brand new exotic car model will definitely have a higher replacement cost when compared to the replacements in an average-styled and older vehicle.

This is due to the huge value difference between the old and the new cars. In simple words, it costs more when replacing parts of a brand new luxury vehicle in comparison to the older and the less expensive car models.

The reason behind this is that sometimes luxury car parts are imported and their parts are not available in that country or sometimes they are rare in availability.

2. The repairing cost for luxury and new vehicles are higher

The repairing cost for newer vehicles is always higher when compared to older models. As a result, the premium rates increase when insuring a brand new vehicle. Say, for example, if your new Honda City gets damaged due to some accident, the auto repair shop is going to charge you more money for the repairing job.

This is in comparison to a 10-year-old Honda City vehicle. This is the reason why your insurer will charge you higher insurance premiums on new vehicles than older vehicles. If you want cheap car insurance for your luxury car them make sure it is properly serviced and maintained.

3. The type of car defines the insurance premiums

The style and type of car definitely play a big part in fixing the insurance premium rates. A lot of insurance companies use actuarial statistic tables that show them the past loss experiences associated with different styles and vehicle types.

Using these tables, they detect and calculate the premiums that can be charged to the customers in the near future. Sometimes a car gives less mileage and is more than 3 or 4 years old tend to get less insurance cover.

So, in this case, see if you can get cheap car insurance because your car is not brand new. Moreover, you can always buy a new car and get it insured immediately. Some car dealers also collaborate with car insurance companies so that you get everything nearby.

4. Take a Look Online

You can look for discount car insurance options available online and find statistical tables from different insurance providers available for the consumers to get a clear idea about the insurance premium rates associated with different vehicles.

Nowadays, there are a lot of car insurance companies who provide all the information online. There are independent sites as well which allow you to compare different policies and then decide on what you need.

For instance, sports cars are engaged in high-risk driving. This is why sports cars are more prone to accidents and damages. As a result, insurance companies ask for high-premiums when compared to average type vehicles.

If you follow the statistical tables of any insurance company available online, you can figure out that the insurer may have suffered higher loss with sports cars in comparison to average vehicles.

After all, a person driving Corvette will definitely drive it at a higher speed when compared to a person driving a Toyota Camry. So, naturally, faster speed vehicles associate a great deal of risk with them.

As a result, insurance companies start increasing their return and charge high-premiums for such vehicles. This makes easy for you to avail for cheap car insurances as your car is not a sports car but a normal one.

5. Do Not Ignore Personal Accident Coverage

Car insurance policies vary from company to company. Therefore, you should always look for more options which will benefit you to the fullest. You can even compare different car insurance companies in that regard.

Some car insurance companies provide insurance against physical damage or loss and any disability due to a car accident. Have a look at their scheme properly as God forbid but these benefits can really help you in the most distressing time.

These type of car insurance policies can be availed according to the seating availability of the car. If your car can give a ride to four people, then all four people will automatically be insured for it.

When you are planning to purchase a vehicle, focusing on insurance premium rates is necessary and important. Never go for a luxury make and the brand name. Yes, people have dreams of driving a Mercedes or BMW. But, then, you also need to consider the other aspects like the expenses.

There are plenty of car insurance dealers available. But you need to look for the best options through a proper channel. Never forget to search online to learn about the different automobile insurance policies and the premium rates associated with them. You must consider looking for multiple options prior to taking a decision.

Take quotes from different insurers and study them carefully to figure out what are the benefits you will enjoy while availing services from them. With car insurance policies, always know that you and your car is in safe hands. Please leave a comment in the comment section below and let us know whether this article has been helpful to you or not.

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Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn

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