It’s easy to get carried away with the excitement of purchasing a new car. However, excitement should not rob you of the ability to make the right decision on how to secure your car.
As a car owner, you must be aware of the mandates pertaining to vehicle insurance as soon as you own one. With too many options available from the leading insurers, it’s natural to land up in a dilemma. This explains why most car owners prefer coordinating with insurance specialists such as Surex for professional guidance.
In this post, you will get to know the basics that would guide your choice when you decide to insure your car.
What Should Your Motor Insurance Cover?
A comprehensive car insurance policy should come with the following benefits.
Coverage for damage or loss due to natural calamities
Certain events like floods, tornadoes, earthquakes, landslides and other natural calamities lie beyond your control. For obvious reasons, you should be securing your vehicle against these damages.
Coverage for damage or loss due to man-made factors
You also need to consider the possibilities like strikes, riots, theft, burglaries, and terrorist activities. All these events can inflict loss or damage to your vehicle. Your car may even suffer damage while on transit through water, rail, or road. Insurance can secure your investment against these types of losses.
Personal accident coverage
Unforeseen events such as accidents can inflict heavy monetary losses. Treatment costs can mount up significantly, particularly when the injuries are serious. The reputed insurers provide personal accident coverages as a part of their automobile insurance plans. Besides, you might choose an optional insurance cover for other occupants.
Third-party liability would financially secure you against accidental damages caused to third parties. Some incidents lie beyond your control. In case you are involved in an accident that leads to the death or injury of a third party, it might invite legal hassles and compensation charges.
Having an insurance policy to protect you against such expenses is, therefore, logical. Once you consult with established insurance specialists, it will be easy for you to customize your policy.
Steps To Choose The Right Car Insurance
The following steps should guide you while you hunt for the right insurance plan for your car.
Assess your needs
You will come across different types of car insurance in Canada.
- Comprehensive insurance
- Third-party insurance
- Collision Coverage
- Liability For Property Damage
- Protection For Personal Injury
You should know that the government norms mandatorily require all car owners to purchase third-party insurance. This scheme will protect you financially against damages inflicted on third parties. However, you will not get any sort of compensation for the damages that your car suffers.
Comprehensive coverage will secure you against third-party damages, as well as the ones that your car incurs. Therefore, it makes sense to invest in a comprehensive car insurance policy.
Collision coverage will provide you with financial support in case you are involved in an accident that results in the damage of your car. This coverage will also insure you against the cost of repairing the other vehicle.
It makes sense to get a liability policy so that you need not shell out the compensation cost for repairing the other vehicle from your own pocket. Moreover, it will also help you cover the medical costs of the other party and any legal costs that you incur.
Personal injury protection, on the other hand, will help you cover the treatment, hospitalization, and medication expenses following a car accident.
Having selected the type of automobile insurance that meets your requirements, compare the benefits and prices of different packages by different insurers.
You will run into several options that look similar. Therefore, it’s logical to consult specialists for detailed guidance. In a nutshell, here are some aspects that you need to consider while you tally the plans.
- Type of add-ons available
- Overall sum insured
- Claim process
- Exclusions of the package
Known the add-ons
In case you own a luxury vehicle, you may opt for some additional coverage. These are known as add-ons, where you can gain more benefits than the standard comprehensive ones.
However, you need to pay an increased premium to enjoy such benefits. These policies would financially secure you against particular damages. Usually, the comprehensive plans have limitations or do not cover these damages. Before you purchase a package, make sure to inquire about the add-on benefits that might be available.
Check claim settlement ratio
The very purpose of purchasing a car insurance policy is to get instant coverage as soon as you need it, following an accident. Therefore, it makes sense to opt for an insurer known for instantly settling the claims.
Hence, compare the claim settlement ratio before you choose a package. You wouldn't like undergoing a complicated process after an accident, trying to retrieve the benefits of your plan. When you purchase the package from an insurer with a high claim settlement ratio, the odds of getting reimbursed are higher.
Factors To Consider While Purchasing Your Car Insurance
Here are certain benefits that might interest you while structuring the ideal insurance policy for yourself:
At times, you may seek alternative modes of compensation in case your car is at the repair shop. Look for policies that provide you with an allowance to manage these expenses.
Lost or stolen key replacement cover
The policy may also cover key replacement expenses. You can also claim the benefits in case your vehicle is broken into.
No claim bonus
In case you do not require any financial assistance from your policy and have a no-claim record, you can obtain a bonus. Go through the norms governing the number of times you can claim in a particular year without affecting the benefits.
Lost baggage and personal belongings cover
Some packages also cover expenses arising from the loss of personal belongings or luggage in your car. You may opt for these benefits at an additional premium.
Choosing the right car insurance package may turn out to be daunting, given the add-ons, options, benefits, and premiums. Purchasing a car insurance policy is non-debatable. Seeking professional support would significantly smoothen this process for you. Compare different providers and look for additional discounts that might just lighten your financial burden.