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Buying Guide - Beware of these 3 Car Insurance Pitfalls!

Buying Guide - Beware of these 3 Car Insurance Pitfalls!

Snapshot: Car insurance is complicated and you can fall into pitfalls.

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While you may save money on the car insurance premiums, but on the event of a car accident or theft or vandalism, you will be left totally unprotected without the shield of insurance. However, just buying car insurance is not enough, as all car insurance policies are not equally supportive and many offer just the minimal protection, which actually don’t come in handy when the real need arises. Cheap car insurances sometimes do not offer good coverage and are also tricky to make a claim. In fact, car insurances are the most complicated ones as compared to health or home insurances, as various external forces are attached with the claims of the car insurances that can prove to be very tricky to ascertain. 

Thus, it is very important to know some of the very common pitfalls of the car insurance policy. Here are some of the points that can help you to avoid these pitfalls of car insurance.

Cheapest car insurance policies 

A basic car insurance policy will albeit give you the minimal coverage in terms of car damage, personal injury and also some of the basic liability factors including others property damage and bodily injury coverage. Theft and vandalism coverage could hardly be there, depending on the actual cost of your vehicle. Thus, such basic car insurance with the bare minimum premiums will not actually be helpful while considering the real life scenarios. If there is an accident and you are at fault, then the insurance will pay damage costs plus, bodily injury cost of the other party up to certain amount, while the rest of the amount will be coming out of your pocket. 

The basic coverage car insurances are therefore not at all recommended. If you should have a car insurance policy, you will be better off with a proper one that offers comprehensive coverage and will help you in terms with theft as well as in the severe times in case you are sued in an accident for damages. Both the property damage and bodily injury coverage should also be pretty high while buying an auto insurance policy to actually get the benefits in the times of need, no matter how unfortunate.

Split Limit Liability

Sometimes cheaper car insurance policies also come with spit limit liability system, which separates the insurance into three sections and have fixed claim amounts for each. Though this sounds pretty okay, this is much riskier than that of the single limit liability car insurances. The split limit liability insurance will have fixed amounts for property damage, bodily injury per person in each accident, and the total bodily injury in each accident. However, you never know how much you will be charged for each of these things on the event of an accident and it is almost impossible that the mentioned fixed amounts of your insurance will match in real life. Thus, the Split limit liability is simply a disaster, and Single limit liability car insurance that combines all coverage into one single figure, is always recommended.

Paying premium per month

If you selecting this option in your car insurance policy, then you are agreeing to pay your the premium in monthly installments. Thus, your annual premium is divided into 12 months easy installments, which sounds economical and also easy to handle. However, the catch here is that monthly or even quarterly premium payment options are more expensive than that of the half yearly or annual ones. Thus, adding up the monthly premium payments will invariably amount to much higher than the annual payments. Thus, it is always recommended to pay your car insurance premiums annually or at least half years to save your hard earned money. If huge annual car insurance premiums seem to be hard to handle once a year, then consider dividing the premium by 12 and save this amount separately in an account for easy financial management.

The above points are some of the common pitfalls of car insurance. Keep them in mind while buying your policy. Also it is crucial for you to know your car insurance policy, by reading it and understanding it thoroughly. Clear all doubts about the various clauses in the policy in order to avoid nasty situations when making a claim.

Car insurance buying guide - How to choose correct insurance for your vehicle?

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