Important Considerations in Respect of Car Insurance

A Insurance Article Contributed by Deepak Cutting

Your Personal and Financial Situation

You must take into account the eventuality of becoming liable to pay damages and also the prospect of loosing your car and take adequate protection to face such an eventuality, when negotiating insurance for your car. Your personal and financial position are to be considered. The thumb rule is that the more you have at stake, better the protection will be needed through the car insurance cover.

If you feel comfortable with going for higher deductibles, this will lower your insurance premium.

Go through the optional types of coverage, with a view to optimizing the policy. If that particular type of risk is already covered for you by some other source, there is no need for having that aspect covered by the car insurance policy as well.

Evaluate the insurance company to see their financial ratings and the consumer complaint history. Web sites dealing with information in respect of insurance will have this information.

Factors Effecting Car Insurance Costs

* A good driving record, free of accidents and traffic violations, calls for a reduction in insurance premium.

* The age, gender, marital status etc. of the driver effects the premium payable. There is statistical evidence to show that these factors vary the risk involved. The insurance premium therefore is also varied in respect of each such factor.

* The cost of car insurance will also depend on the car to be insured. Some cars will command greater premiums than others since they may be more expensive to repair or may be easily damaged or stolen.

* The type of insurance cover will effect its cost. Greater insurance limits increase the cost and increase in deductibles brings down the premium.

* No claims in the previous years reduce the premium in the current year.

How to Lower the Car Insurance Rates

*Take several quotations. But make sure that you are comparing costs of similar insurance policies.

* Opt for the right deductibles.

* Ask for discounts. It could help if you insure more than one vehicle in that policy, insure other assets (such as your home) insured by the same company.

* Have safety devices such as a burglar alarm, airbags, anti-locking breaks etc. fitted in the car.

* A clean driving record and credit history goes a long way.

* Take a driver's course.

* Have good academic records.

Property Damage and Physical Damage Car Insurance

Property damage cover is mandatory. It is also referred to as 'third party insurance'. It covers damage to someone else's property. There are no deductibles available here. Physical damage is also referred to as a comprehensive insurance cover. It covers unexpected damage caused by most sources such as accident, theft, fire, etc. and provides for cover to both your and the third party's person and property. This type of cover has deductibles.

If some other driver is using the insured car with permission, damages to or from such vehicles are also usually covered but this issue is to be reconfirmed.

Action to Be Taken in Case of Car Accident

Firstly, arrange medical attention where necessary. Then inform the Police. Also inform your Insurance Company. The Police and your Insurance Company will then decide what is the further action to be taken and let you know the procedure to be followed. Keep a note of the address and telephone number of the other party involved in the accident and the name & address of their insurance company.