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19 Apr 2021

What to Look for in a Car Insurance Policy

Post by Jordan Toplen

You’ve bought a new car and are probably wondering what insurance company to turn to and what kind of coverage to buy.

You have probably spent lots of money on your car and need the best coverage to reduce losses in case of an accident. When it comes to car insurance policies, there is no particular one-size-fits-all solution. What works for one person may not effectively suit your needs. The suitability of different car policies varies depending on several factors such as your car type, its purpose, and the risks you may anticipate. You, therefore, need to be extra vigilant when choosing your car’s insurance coverage. Failure to buy an appropriate coverage may lead to extensive losses in case of a car accident.

What to Look for when Buying a Car Insurance Policy

1. State Guidelines

The minimum car insurance policy requirements in America vary from state to state. Having this in mind, you need to find out the requirements in your state. Failure to meet the minimum requirements may have huge legal repercussions on you. It could lead to being fined or even serving a jail term for your negligence. It is always best to be over-insured rather than underinsured.

2. Comprehensive Coverage

If your car was extremely expensive and you want to protect it from any risk at all, this is the best coverage to buy. Comprehensive coverage helps repair or replace your car even in the event of a natural disaster or theft. Such coverage is very helpful.

3. Brand Reputation

Before purchasing your coverage, scan the website and ask professionals what they think about the particular company you are interested in. A company that has very negative reviews from its existing customers may most likely frustrate you as well. As you do this, be careful not to fall into the trap of marketers, who may encourage you to buy bad insurance policies. Only seek advice from credible sources.

4. Claims Process

It is important to know a company’s claims process before agreeing to buy their coverage. Some insurance companies have frustratingly long processes that may hold you back when getting your compensation. As much as possible, avoid buying such coverage since they may prove difficult to deal with if you get involved in an accident.

5. Voluntary Deductibles

Voluntary deductible is the amount you agree to pay from your pocket in case of a crash or required repairs. These payments go a long way in reducing your premiums. You will find it helpful to develop a flexible arrangement that will not be too hectic for you when involved in an accident.

6. Bundled Car Insurance

If you own more than one vehicle, this is an option to consider. You can have one coverage that caters to all the vehicles in your household. Having this coverage makes it easier for you to keep track of all your payments and keep them updated. In some companies, it is also much cheaper to buy this coverage than individual ones for all your cars.  

What to Do in Case of an Accident

When involved in a car accident, one of the first calls you should make is your insurance company. Doing this will help you foot the required costs and get compensation for your damages. However, if the accident resulted from another driver’s mistake, seek legal advice from Lane & Lane, LLC. Getting legal representation will help you build a personal injury case and get all the compensation you deserve from the erring driver’s insurance company.

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