The Ultimate Car Insurance Guide

car insurance guide - shieldwise
by shieldwise

When it comes to car insurance most of us do not even think about it and get the cheapest one available. You may not think about if you are getting the best coverage or if the rate is going to stay the same over the years. We know it is confusing so let’s get right to it in this car insurance guide.

What is car insurance cover?

Typically, car insurance will cover your car, and the damage caused to other vehicles if you are involved in an accident. In short, car insurance covers the parties involved. This may vary depending on the type of coverage your car insurance provides.

What are the types of car insurance cover out there?

Well, some car insurance guides will not tell you this but there are three types of car insurance available. We will talk about that coverage in this car insurance guide in brief.

Third party coverage

This is the most common type of car insurance cover and it is the least expensive generally. With third party cover, you will be covered for the damage done to other vehicles in an accident and the passengers in your car.

As per the name of this insurance coverage, it will not cover the damages done to you or your own car. So, keep this in mind when getting third party coverage.

One thing I would like to add about third party coverage, very often it is not the cheapest coverage you can get.

This is because the number of people buying this insurance is higher. Hence, the number of claims insurance companies get for this type of insurance policies is higher compared to the other two.

The insurance companies got wind of it and started associating higher risk with people who are buying third-party insurance coverage through a car insurance guide.

So, the premiums for such insurance policies are sometimes more expensive than comprehensive insurance coverage.

This happened because people would often get the cheapest insurance available and would file a claim when they are in an accident. Most of the drivers making a claim drive carelessly which automatically makes them a higher risk in the eyes of insurers.

Third party fire and theft

This covers everything covered by the third party coverage mentioned above. Plus, it insures your car for any damage from a fire, or if your car is stolen the insurance will take care of it by helping you get a new car or by paying off the existing car loan.

Comprehensive coverage

This is the best type of coverage you can get. This covers everything mentioned above, plus it will cover any damages done to your car even if the accident is your fault.

Tips to help you get the best car insurance

Any car insurance guide would not be complete without tips to help you get the best car insurance possible. So, here we are with our tips:

Learn how car insurance premiums work

The amount you pay each month or each year for your car insurance is called a premium. Insurance companies decide how much your premium should be for an insurance policy based on two factors: age and occupation.

If you are between 17-25, you will be charged a higher premium because you are deemed a young driver. Above 25, you are safe from being put into the young driver category if you’ve had your driving license for at least a year.

The next thing they look at is your occupation. Your occupation tells them your risk level. If you are a construction worker and carry heavy machinery in your car, the premium for your car insurance is going to be higher.

Compare different insurance companies

There are insurance comparison websites available online where you can compare insurance policies side by side. Researching is important because it allows you to find the best deal available.

Get additional driving courses

If your driving license is less than a year old, you can get additional driving courses. Some insurance companies will reduce the insurance price for these types of courses.

Protect the no claims bonus

Insurers offer a no claim bonus if you can refrain from filing a claim for a fixed period. If you claim within that period, you will not get the claim bonus. So, keep in mind before you go ahead and make a claim.

This was our ultimate car insurance guide. If you have any questions, leave a comment below.

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Categories: Car Insurance
Tags: Guide