Purchasing our own car is a rite of passage we all look forward to. For some us, it is a sign of our progress in life and means a great deal. As fun as buying a new car is, the part where you have to buy insurance for your car is the biggest task. The primary purpose of car insurance is to provide financial protection against physical damages and liability in case of an accident. Like any other insurance policy that we purchase to protect ourselves and the things that we own, car insurance is very important as well.
There are endless numbers of car insurances available in the market. Some companies come up with glossy ads with offers such as lower premium and discounts, and it is indeed very easy to get drawn by it. The best advice in this situation is to refrain yourself and decide only after you have done ample amount of research. Any type of insurance is very complex and beyond the means of laymen to understand without assistance. One should steer clear of any company representative sweet talking you into buying their insurance; rather, one should examine as many insurance policies as possible and choose the one that caters to your needs perfectly.
To help you with your quest in choosing the best car insurance, below is a list of factors that needs to be considered before setting your mind and money on a particular insurance policy.
Value of the Car: Lower premium does not always mean full coverage. There are many insurance companies which offer low premium car insurance and as much as they sound inviting, they usually cut back on IDV, Insured Declared Value. Cutting back on IDV means that if you have had an accident in which your car was completely damaged, you may not get much out of the insurance. It is always advisable to go for an insurance policy that offers maximum IDV, even though you might have to pay higher premium.
Premium Payable: The premium is one of the most important factors in any insurance policy as that will decide how much amount you have to shell out and the coverage you will get. Generally, the maximum premium payable is 4 percent of the invoice of the vehicle. However, you might be able to bring it down to 3 percent if you bargain hard. The premium payable is different from one vehicle to another. For example, SUVs have a higher premium payout compared to other cars. Also, diesel cars have 10 to 15 percent higher premiums compared to petrol cars.
Cashless Coverage: The bonus point of any insurance policy is the cashless coverage wherein, in the case of an accident at the time of making a claim, the insurance company will settle the final bill for you without you having to chip in any cash. Generally, how insurance companies work is that they will reimburse the amount that you have spent. Therefore, with cashless coverage, you do not have to go through the whole ordeal of running behind insurance companies to reimburse your money.
Looking for the best car insurance in Maryland that will suit your needs perfectly? Click here and find out what you need to consider before deciding on any insurance policy and all the available options.