Things To Look Out For In A Car Insurance Company

Car insurance is a necessary expense. Truth is, accidents and unfavourable circumstances happen, but when they happen; who bears the cost and expenses? Having car insurance serves to relieve you of the financial burden that comes with car accidents, theft, vandalism, and fire outbreaks. The major function of car insurance is to provide you with the necessary cover when these unfortunate events happen. But then, there are lots of car insurance companies with juicy offers that you almost don’t know what to settle for. That’s what this article is about, to give you a guide on things to look out for in a car insurance company:

Brand Reputation

This is key and it’s one of the first things to look out for. If you unknowingly go for a company with a bad Reputation, then you know that you might likely get no cover at all when you most need it. The best way to know a Brand’s Reputation is to give time for a thorough research. Go to the company’s website, read up on them; weigh the reviews of clients either positive or negative etc. Your research should help you determine; How long they’ve been in business; In which states they sell their products; Their mission, vision, and values; Company leadership; Community involvement; Types of products they sell; and Financial strength. Knowing all these will help you judge on the Brand’s Reputation.

Financial strength

Like I said earlier, the main essence of an insurance company is to provide financial cover when you make a claim. An important factor to consider is how strong the company is to make the payment for an perhaps ‘unexpected’ claim you come up with. It will be said to find out that your car insurance company can’t pay your claim due to weak Financial strength.

Coverage

Coverage is two-fold actually, because it’s about the type of coverage you want vs the coverage the company is able to offer. Three broad classes of coverage are available under the kinds of insurance packages. These are;

• Third party insurance: In this case, only the third party gets insurance when an accident or damage occurs involving you and third party.

• Third party, theft and fire: This insurance package is similar to the third party insurance, however, in this type; you also get insured when you car is involved in a theft case or fire outbreak.

• Comprehensive Insurance: Like the name implies, comprehensive insurance covers both you and the third party when an accident occurs regardless or if the accident/damage was your fault or not. Medical expenses, personal injuries, theft, fire outbreak etc are usually accounted for in comprehensive car insurance.

Now, considering these types of cover, it’s up to you to choose the one you need and is able to afford. Also, consider and compare the type of coverage available with various insurance companies based on their different packages. Some have more benefits than others as an incentive to attract more customers- it’s okay to take advantage of it.

Also Check:

• Cheap Car Insurance Companies In Nigeria
• Car Insurance Companies In Nigeria – Cost of Third Party Car insurance
• Step By Step Guide On How To Renew Your Car Insurance 2021

Price

The money you have to pay regularly to an insurance company called Premium is another important factor to consider. Note that I didn’t mention this first; this is because the premium is not the only factor to consider when choosing a car insurance company. However, it’s wise to consider the price too; because you might get the same level of coverage at a lower price in another insurance company compared to the one you have found. The best thing is to compare the prices amongst different insurance companies and the coverage they provide; then go for the one that suits you.

Available Discounts

Discounts are often provided by car Insurance Companies to attract and retain customers- it’s in your best interest to know it and take advantage of it.

Courtesy cars

In most cases, when a car insurance company offers comprehensive insurance, they tend to have courtesy cars. Courtesy cars are usually provided when your car needs to go for a repair or it got damaged and you need one till you buy another within a stipulated time. A basic courtesy car is normally provided for free or at a discounted rate (PS: it’s accounted for in your premium) till you are able to get your car back.

Ease of Communication

Which would you prefer: a car insurance company that you can easily interact with even if you are not in the company or one that hardly responds to you until you drive down to make your complaint?

When choosing a car insurance company, another factor to consider is how easy It is to communicate with them and how well they treat their clients. Good customer service is an attractive magnet anywhere. A good car insurance company should have good customer service, online bill payment options, social media platforms etc to make Communication easy.

Conclusion.

Car insurance is a must-have for every vehicle. The minimum insurance required varies from country to country. Use those tips to pick out the best car insurance you need.