Some Other Important Considerations for Car Insurance

A Insurance Article Contributed by Deepak Cutting

Comprehensive Insurance for Older Cars

Third party insurance is mandatory. Comprehensive Insurance is not mandatory unless your car is financed. In case of older cars, the insurance cover will not pay much compensation in the event of an accident, on account of the wear and tear and depreciation that is supposed to have occurred, reducing the value of your car in any case.

The following need consideration when deciding on the type of Insurance you opt for:

* Can you afford to replace the car if damaged?

* Can you pay for repairs in the event of an accident?

* Can you pay for a rented car and/or incur other transportation expenses while your car gets repaired?

Your Car Insurance Cover If You Move to Another State Temporarily

The insurance policy covers you nationwide but if the duration of your stay in another state is likely to exceed, say, 30 days, it is best to change the policy. Terms of insurance may vary from one state to the other and it is best to renegotiate the insurance policy in that case.

What Type of Insurance Cover is Available for Leased Cars

There is practically no difference in insurance protection in case of leased cars. The insurance company will treat it on the same basis. If the leased car which was insured is relatively new, and stolen or 'total loss', the insurance company may not compensate entirely to the extent of the amount due to the financiers, depending on the type of policy. Insurance claim will not pay for depreciation, any 'deductibles', any penalties for mileage etc. The GAP insurance policy will cover the gap between the amount owed and the amount available through the insurance claim.

Add on to Insurance Policy in Respect of a Learner

Most policies do not require someone with a learner's license to be included as specifically covered in the policy. Once that person acquires a regular license, his name should get included, should he be driving that car. The insurance premium for new drivers is higher. You may therefore want to take another look at the policy, should your son or daughter start using the family car. In that case, if the son or daughter gets good grades at school and the policy increases deductibles, the insurance premium can be kept at reasonably low levels.

Insurance on a New Car

The car must be covered by a valid insurance policy, the moment you commence it's use. If you have a valid policy, the new car will get most of it's benefit for the first 30 days. When a new car is bought, that is a good time to review the insurance policy and compare prices. If deciding on which car to buy, new or old, you could include insurance costs also in the comparison.

Two cars may appear similar but repair costs and therefore insurance costs could be quite different and that will impact your buying decision. Should the car being purchased need to be financed, you may need to go for insurance the moment you buy the car.