What You Should Consider Before Buying Car Insurance for the First Time

So, you have managed to buy your first car. It sounds like a significant milestone in your life, right? Well, what have you thought about insurance? How much is insurance for a new driver? These are some common questions that should be swirling in your mind.

Choosing car insurance can be challenging, especially with so many available. To make the process easier, we have sorted the most important factors you need to consider.

1. Sort out the Coverage

The reason why there are so many different types of car insurance policies in the market is because each one of them offers separate coverage.

So, the first factor to look out for is the kind of coverage the insurance will provide. Ideally, you want to pick car insurance that will protect your car against damage, especially when it’s mangled in an accident.

2. Premium Amount

Unless you are wealthy and don’t have to worry about the insurance premium amounts, this is another factor you need to consider before purchasing the insurance policy.

The premium amount depends on the coverage and perks you are getting for your car. If you want to go ahead and secure every part of the car (including the engine), chances are that your premium amount might be more.

So, negotiating and deciding the premium amount for the insurance is another thing you must prioritize without fail.

3. No Claim Bonus

Almost every car insurance policy you buy comes with a claim bonus. But, the sad part is that not many individuals are aware of it, meaning they miss out on saving a lot of money on premiums.

No claim bonus can be claimed during the car insurance renewal. However, if you have a claim-free year, you can claim the NCB next year. This can reduce your premium amount from what you were paying previously.

This particular feature in your car insurance policy is only viable in new cars. So, if you buy an old or second-hand car, this specific add-on won’t be available in the insurance.

4. Add-on Coverage

Another critical yet underrated factor about car insurance that many people miss out on is the add-on coverage.

It includes additional protection on elements like zero depreciation coverage, consumables, engine protection, key and tire protection, etc. These are add-ons along with your overall car insurance coverage. The great thing about the add-on is that you can select which ones you wish to add and which you don’t.

5. Claim Settlement Ratio

Checking the insurance company’s reputation and record is essential before buying car insurance. You don’t want to invest in a company’s policy with a low claim settlement ratio. This indicates that they don’t provide the coverage they claim.

Look for insurers with a maximum number of network garages in the area that you live in. This will make redeeming your insurance a lot easier.

Conclusion

Buying your first car insurance policy can be a hassle in several ways. But, keeping these above pointers in mind should make it easier to choose the right car insurance that matches your needs. If required, compare all your options before settling on one.