4 Questions You Need To Ask Before Buying Car Insurance

Buying a new car is a moment of excitement for everyone and people usually put a lot of planning and research into finalizing the car they want to buy. But when it comes to car insurance, most of the buyers depend on the advice of agent at the dealership or any advertising they have been seeing for car insurances.  But this might not be the approach to buy an insurance policy for your car, on should check for car insurance quotes online and compare the available options as per your needs. Car insurance terms can be complicated, especially for a new buyer and you should be asking these questions before you buy insurance for your vehicle:

What are your legal obligations?

Depending on your locality, your State might have different rules for vehicles. You must be aware of your legal obligations for your vehicle in case of any accident or damage. The law requires every vehicle on road to have third party insurance, which covers any claims for third party involvement in the accident. Check with your insurance policy if it covers you legally for all obligations. If you plan to take your car outside of your State frequently, make sure you are covered well in advance and save yourself any last minute troubles.

What type of coverage do you need?

Apart from legal coverage, one would want coverage for their car in case of any accidental damage to vehicle and person involved in an accident. Apart from the accidents, you might seek comprehensive coverage that protects your vehicle in any other damage than accident such as theft, fire, natural disasters etc. It is also a good idea to know personal accidental cover for driver and passengers. It is good to have higher coverage in case of an accident for driver and passengers as it can help pay medical bills in any such situations.

What is the declared value?

Declared value of your vehicle might be a direct factor to increase or decrease your premium. You should check the declared value of your vehicle at the time of car because this will be the maximum total amount that insurance provider is liable to pay in case of total damage to the car. Make sure your car’s coverage value is somewhere around its market value when you buy insurance. You can buy car insurance online to compare in details before selecting the best policy for your car.

What is the claim process in case of an accident?

This part is particularly important because you want to avoid unnecessary tensions if you are caught up in some accident. Some providers might take up to six months to settle the claims and the buyer needs to pay the fees from his own pocket for the time being. Nowadays zero-debt insurance policies are much favoured by buyers as they cover all aspect of a buyer in any accident and don’t require a buyer to spend his own cash in any such accident or damage to the vehicle.