Buying your first motor insurance policy

Posted by jorn | Posted in | Posted on 23:22

Buying car insurance is often referred to as a grudge purchase. This is because you don’t gain anything from having insurance, but you have to pay for it anyway in order to prevent losing money. Insurance is an annoying and costly part of life, but if you shop carefully you can keep costs down and still be adequately covered for unexpected events like thefts or accidents.

How much cover do I need for my vehicle?
This is a common question. When you are deciding on your cover options, have someone that is familiar with insurance policies handy. Insurance brokers may try and up-sell products that you don’t need in order to get a higher commission, so they aren’t always the best source of advice. Consider what your vehicle is worth, what you could afford in terms of the excess and what you can afford per month for the premium. The answers to these questions should help you determine the level of cover that you require.

Compare, compare, compare!
Comparing products and services offered by insurance companies may seem like a chore, but it could save you thousands in the long run. The reason comparing quotes is so important is simple; different companies can offer very different premiums for very similar policies. Factors such as your age and driving history factor into your risk profile which influences your premium. Insurance companies have their own ways of assessing and weighing these factors, meaning you could get great rates from one company and very high rates from another.
Make sure that you carefully assess your insurance needs and look for hidden catches in cheaper policies. If you don’t, you may lose out on some benefits which you might really need in the event of a claim. Comparing quotes is quite straight-forward. There are numerous websites that offer quote comparisons as well as companies that do it for you over the phone.
Finally, before you purchase a new insurance policy, consider bundling all your insurance needs into a single policy as many companies will offer discounts if you do this.

Know what you are covered for
Your insurance company is obliged by law to explain all the fine print in your policy to you should you ask them to. Do not hesitate to ask as questions and ensure that you fully understand what you are buying. Know what kind of claims will affect your no-claim bonus, specify all items of value that are not covered by your policy and know what your excesses are going to be in the event of a claim. All these things can be confusing to a new buyer so try to have a family member or friend present to assist you.

Once you have determined how much cover you need, shopped around for quotes and then gone over the fine print, you should be ready to purchase your first car insurance policy.

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