Driving a car is a big responsibility. so ensuring it is just as important. Here are six essential questions to ask when buying car insurance to help you protect yourself and your wallet.
Why buy your car insurance?
Due to the number of insurers offering very different rates and types of cover, buying auto insurance can be complex. In addition, insurance companies do not all offer the same products and some insurance agents will not give you all the information you need to make an informed decision.
It is therefore essential to shop around to find the right balance between insurance coverage and tariffs. Here are some questions to ask before making a decision on buying auto insurance.
1. What kind of auto insurance do you need?
- The Canadian provinces dictate compulsory insurance. Each province sets a minimum amount for medical expenses and civil liability. This is the minimum coverage required by law.
- Collision insurance covers the cost of repairs to your vehicle, no matter who is responsible for the accident. In general, you will pay a deductible in advance of the insurer’s repayment of the repair costs. This type of insurance is a good choice if your car is recent. Collision insurance is optional.
- Multi-risk insurance covers non-accident situations such as theft, fire, and vandalism. Multi-risk insurance is also optional.
2. How does the insurer conduct the risk assessment?
The risk assessment is based on many factors other than the number of speeding tickets you received.
- These factors include your place of residence, age, gender, driving record, and credit rating.
Do not forget that each agency can assess your risk differently and thus establish your tariff.
3. What coverage for people driving your car?
You have to think about what can happen if your teenager suffers an accident while he is driving your car. The same reasoning applies if a friend borrows your car or if you drive your car as part of your job.
- Think of all the people who will drive your vehicle and make sure you have the coverage needed to avoid unpleasant surprises.
You may read also: Health benefits of cycling 15 minutes a day
4. What is the amount of deductible that you have to pay?
If you suffer an accident, you will almost certainly pay an amount. If you can not pay the deductible amount of your insurance, your car will not be repaired.
- Keep in mind that lower premiums usually result in higher deductibles.
5. Do you entitle discounts?
Find out if your exemplary driving record and the safety features of your car allow you to enjoy better rates.
6. What happens when you submit a claim?
Ask what happens after an accident and if your insurer allows claims submission every day, 24 hours a day. Otherwise, an accident will cause you more stress.
Factors to Consider
- Compare the rates and features of a car insurance policy to choose the right policy for you.
- The cheapest car insurance is not always the best.
- Before calling your insurer, try to get prices online to get a general idea of the rates and types of insurance offered.
By law, every driver must have a minimum amount of car insurance. However, it is often not easy to determine what type of insurance policy you need. So do not be afraid to shop around and ask a lot of questions.