What Factors Should You Consider While Buying Car Insurance

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It is established fact that you need car insurance if you plan on getting a car for yourself. Insuring your car will provide you financial coverage against, lost, stolen and accidents. However, what are the factors should you consider while buying car insurance, especially when you are a first time car driver, or you are just about the legal age for driving? How can we compare the features of various car insurance products, what factors should we give more importance? How can we compare the prices of various car insurance policies? Can you suggest good car insurance companies that provides optimal coverage for minimal premiums?

What Kind of Auto Insurance Do You Have?

If you ride an automobile, you need auto insurance. Auto insurance will not only provide coverage when you get into an accident and damage your automobile but even saves you from paying compensation in case you hit someone’s vehicle. Do you drive an automobile, what kind of auto insurance do you have? Well, I ride a motorbike and have two different insurance policies for my motor bike, one, third-party insurance that cover damages if I hit someone’s vehicle (the insurance company pays for the loss or damage against third party vehicle), and two, general auto insurance that covers theft and accidents. In my home country, every flight or bus ticket includes a certain amount of insurance coverage at no extra cost.

Do You Have Third Party Auto Insurance?

You can get different kind of insurance policies for your automobile and one of them is third party auto insurance. Despite low premium costs, third party insurance can be highly beneficial. Do you have third party auto insurance? In case you do not know about this kind of insurance, it is basically a policy that primarily covers the damages to someone’s vehicle when you hit it, it also covers the driver of the vehicle you hit. Third party auto insurance focuses on the affected party. This means the policy will pay for damages on someone else’s vehicle and also cover the medical expenses of the driver of another vehicle if they are injured.

Benefits of Third Party Auto Insurance

You can get different types of insurance policies for your car, or whatever automobile you drive. You can get the one that suits best on your interest. One of the most popular type of auto insurance is third party insurance. This insurance policy is specifically designed to cope with the situations where you have to compensate the owner of the vehicle that you hit. In other words, if your car damages someone else’s car, your third party insurance will cover for the damages. Unlike general auto insurance that is designed to provide coverage for your own vehicle, third party insurance provides coverage for someone’s vehicles in case you accidently damage their vehicle.

Renewing and Buying Policies

Some insurance policy needs to be purchased every year. For instance, if you buy car insurance, you are not actually renewing the policy after one year, you can actually buy a new policy because the insurance company needs to check your car again to determine the coverage and premium. However, some insurance policy remains the same and no reviews are needed. For instance, when you have life insurance policy, the same policy applies for your entire policy term

​ The premiums for the insurance policies that need to be purchased every year, instead of renewal, can go high. For instance when you buy car insurance and after the term ends, you are not actually renewing the policy, you are buying new one even when you are with the same company and same type of insurance. However, some policies are just to be renewed and the premiums for these types of insurance remains same over the years. For instance, your premium for whole life never inflates.

No Claim Bonus On Auto Insurance

If you have a house, property insurance is must. If you, just like me, don't own a property, this insurance policy is not necessary. However, if I owned a property or if you own a property, you should certainly insure it. That’s because you can recover financially if your property gets damaged due to hurricane, typhoons, earthquakes, fires, floods, even robbery. There are a couple of things you need to understand before you buy property insurance. If your property does not get damaged during the insured period, you have nothing to claim and your insured amount will be claimed by insurance company. Some companies offer NO Claim Bonus and you can get discounts while renewing the insurance. It is very important that you choose a company that offer No Claim Bonus. Some companies offer up to 15 percent No Claim Bonus while renewing the insurance. If you are with the company that offer No Claim Bonus, you will be able to save money with your property insurance. Always buy property insurance from a company that offer higher No Claim Bonus.

Transportation Insurance: What Is It And How To Get It?

When you fly in a plane, you get insurance by default (your ticket includes premiums for insurance). When you transport goods, your goods are also eligible for insurance. However, depending on the transportation company, it may or may not include insurance coverage by default. Transportation insurance, also known as transit or cargo insurance, is an insurance product that protects your goods while transporting from one place to another. Transportation insurance covers things natural disasters (in case ship carrying your goods is caught in storm), theft, fire (in case the shipping vehicle catches fire), and accidents. So, who can actually benefit from transportation insurance? Well, this insurance is for business that  frequently transport goods, while procuring or while transporting to the market.  Transportation insurance can also be beneficial for people who are moving homes. Let’s say you are moving to another state and have hired a transport company to shop your belongings. You can get transportation insurance. If you are moving homes, check if the transport company you have hired offer insurance for your goods or not. If they do not provide transport insurance by default consider insuring your belongings. There are different types of Transportation Insurance, for example, inland, marine, or freight insurance. You will have to get transport insurance accordingly.

Insurance Loopholes and Coverage Exclusions

Do you realize, sometimes you can be excluded from insurance coverage. That’s because there are a lot of loopholes in insurance policies and coverage. Actually, insurance companies are notorious for writing vague clauses that a common individual might not be able to understand fully, thus could be excluded from the coverage. For instance, when there are armed insurgency in our country, insurance companies denied providing coverage for property damages because they said that the damages are from terrorism, and there is no single clause that starts coverage will be provided for damages caused for an act of terrorism. In some countries, property damages caused by natural calamities like earthquakes, typhoon, etc. are not covered as thee insurance companies say these are act of god, so coverage cannot be provided. Sometimes if your property is in disaster prone zone, for instance, in a country like Japan where earthquakes are frequent, you will not get any kind of coverage. Therefore, it is very important that you read the terms and conditions properly and understand your coverage. You should know what is being covered and what is not covered in your insurance policy. Don’t let insurance companies fool you through the loopholes and exclude you from the insurance coverage.

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