After your house, your car is the second most important asset you have. As such, it is your main responsibility to take proper care of it and protect it so it can serve you for many years to come. While performing regular car maintenance is one way of doing so, another important thing you need to do is to obtain car insurance.
In general, car insurance is a type of financial protection that covers the cost of damages, repairs, and even medical bills if you get in a car accident or suffer a loss through fire, theft, vandalism, or a natural disaster. It is mandatory by law in almost all countries in the world and insures against financial loss caused due to physical damage of any kind.
However, getting car insurance is often regarded as a daunting task for people as there are many things to consider to make the right purchase. To help you along, we have decided to put together the ultimate guide to navigate you through the process and get the best car insurance for you.
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Shop around for different quotes
The first step you need to take when getting car insurance is to shop around. This involves getting multiple quotes from various insurance providers so you can explore different coverage and pricing options.
For example, if you live in Canada, you might want to consider working with a reputable insurance broker to help you search for car insurance quotes and find the best possible coverage for you at an affordable rate. This person is an expert in the field and will have your best interest at heart to tailor coverage that suits your needs and budget.
Understand the different types of car insurance coverage
As you are shopping around for different quotes, it is important that you understand the different types of car insurance coverage before making a purchase. There are several types of coverages you should consider, some of which are mandatory by law and others are optional.
For example, liability coverage is essential in almost all countries in the world. Its main purpose is to cover the costs incurred by the other party in the accident. It usually comes with two policies, bodily injury liability and property damage liability, which cover medical bills and damages caused to the other party’s vehicle.
Know what’s considered
In addition to varying from one insurance company to another, auto insurance costs also vary from person to person, even if you are buying the same coverage from the same provider. There are different factors that are taken into consideration when obtaining car insurance and these are:
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Policy choices;
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Age and gender;
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Driving record and history;
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Location;
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Credit score;
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Type, make, and model of vehicle.
Besides these factors, there are also other elements some insurance companies take into account when calculating your car insurance such as traffic conditions and crime in your area.
Find savings
It is well known that car insurance is quite costly. The good news is many insurance companies offer a variety of discounts that can help you save on your premiums while still getting the best auto insurance for you.
Some common car insurance discounts you can get include:
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Good driving discount;
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Low mileage discount;
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Multi-car discount;
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Bundling discount;
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Deductibles.
For example, deductibles are the amount of money you pay out of pocket after a claim before your insurance coverage kicks in. The higher deductible you pay, the lower your insurance premium will be.
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Consider life changes
Another thing you should consider when obtaining car insurance is your life changes. In other words, when you are young, you mainly use your car to go to work, run personal errands or go on road trips.
However, as you get older, your vehicle will most likely become a necessity for your family which you will use to drive your children to school and activities, pick up groceries and go on vacations. In many states, these life changes can impact your premium and even change its cost if you get married or add a child to your policy.
Therefore, make sure you let your insurance provider know about these changes to see which coverage suits you best.
Final thoughts
Getting car insurance is a necessity for every driver. Its main purpose is to provide you with financial protection against damages and injuries incurred in an accident of any kind.
To ensure you are getting the most out of it, you should shop around for different quotes and work closely with an insurance broker to help you obtain the best car insurance coverage for your needs and budget.
