How to Shop for the cheapest yet best car insurance?

Recently a research study claimed that 70% of population in US,UK and Australia ends up paying more for auto insurance they should ‘ideally’ be paying. This number increases by 10% in developing and emerging markets like India, China and Brazil. This just goes on to show that we tend to get complacent while going to shop for the best car insurance and are just driven by what auto broker’s false claims. Most of the respondents of the research admitted to not being able to understand various clauses and conditions stated in their policy.

This lack of knowledge related to insurance coupled with our desire to get the cheapest auto insurance, leads to us paying for covers which are not really meant for us. This doesn’t mean we should avoid buying a car insurance but it just means we need to be extra vigilant while buying one, read more about What is covered under Car Insurance. Today I will discuss of some of the points one must consider in his quest to pay less insurance premium.

1. Learn. Research. Then buy.
Before going out to buy a policy one must sit down and list down various types of covers and services one is expecting from his insurer. Getting an insurance cover alone is not enough; one needs to go for an insurer who provides 24x7 customer service, easy claim settlements and renewal services. Apart from this one must understand which sort of covers he might not require, listing them down and getting them scrapped from the policy can save some serious bucks. (Different Types of Car Insurance)

2. Check the background of the insurer
There are some 20-25 insurers in US alone who are ready to sell their plans to you for various prices; this doesn’t mean they are all good. You may wonder why a particular insurer asks for more premium for same cover as compared to other; well it’s because there is more to an insurer than just collecting premium. A good insurer has a healthy claim settlement ratio and has a robust customer care service. In addition to it one must take a look at financial statement of the insuring company as it demonstrates who well managed it has been in its operations.

3. Getting a cheap insurance should be a motive getting a right one should be the aim.
You may get basic insurance covers at throw away prices, but they are worth nothing when you really need to make a claim. Additionally if you get a life insurance along with the auto cover, one must go for it as it really provides that extra protection against adverse events.10 Factors That Affect Your Car Insurance Premium

4. Choose the deductible well.
Deductible is the amount one has to pay before the insurance plan starts to pay, in simple words if you claim a loss of $100 and you deductible is $20, and then insurance company will just pay $80.
Increasing the deductible can reduce the policy cost to a large extent but at the time of claim settlement it may prove counterproductive. Thus one should be reasonable in selecting the deductible in the policy.

5. Take care while choosing add-ons.
Add-ons may look unnecessary to layman but they form a very important part of any insurance package. Choose the add-ons smartly and read more about them before choosing to select or ignore anyone of them. Add-ons like engine protector, zero depreciation benefit, etc can be very usual and can save us a great deal of money in long run.

I hope these tips will help you shop smartly for the cheapest yet the best auto cover.

Read more:
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Telematics Insurance: Advantages and Disadvantages
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