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. In this article, we bring 6 important questions to ask and the reason for buying a car insurance. Let’s start.
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. Avoid mistake when you are leasing a car. 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.
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.
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.
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.
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.
Do you authorize discounts?
Find out if your exemplary driving record and the safety features of your car allow you to enjoy better rates.
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.
Reasons to have car insurance
Peace of mind when driving your car
There are events that when they occur, cause you a significant financial loss. For this reason, having basic auto insurance for your car will help you to manage quietly since, for example, it can offer you support in case of:
- Theft of your vehicle.
- Damage to third parties.
- Damage to your vehicle.
- Injuries to passengers.
An auto insurance is a mechanism by which the risks related to the use of your vehicle are transferred from a natural or legal person to an insurance company. For example, payment to a third party in the event of a crash.
A small monthly investment that would mean savings for your future
Insurance works on the basic principle of risk transfer. This means that it is reasonable to opt for the certainty of a small payment, against the possibility of a future loss or damage of great magnitude.
Save time and spend less in the event of an automobile accident
In case of the accident, the consequences can range from a high repair cost of your vehicle, a great material damage to other vehicles and even injured people. With an auto insurance, the loss or damage can be compensated and your economic situation will not be affected.
In addition, by having auto insurance, you will save time, since you will have the certainty that you will receive assistance in case of breakdown or panne. The assistance includes: towing service, means of transportation, lodging, transport, deposit and custody for your repaired and recovered vehicle, transportation of companions in case of injuries, location and shipment of spare parts, replacement car, assistance light mechanics, vehicle inspection during your holidays, professional driver by technical review and replacement and mileage maintenance. All these services and benefits may vary according to the contracted plan.
It protects you from theft
With an auto insurance, your car will be protected against theft with total loss and even against theft of accessories of your car. Not because you are a good driver you will not need insurance for your car. No one is free to suffer the theft of your car and taking insurance will be protected against those expenses that otherwise would be very difficult to deal with.
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.