5 Steps While Buying a Car Insurance

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Many people will prefer getting a car insurance quotation online, from a broker or an agent or over the phone. You are probably wondering how long it takes for you to get a car insurance. There are times when you start a quote online, some companies will assign you agents before application. Shopping around is very important and you will always get the best market deal. If you are interested in finding some good and cheap insurance, check this site.

Troubles are unpredictable and always come around uninformed. Even the experienced drivers can never avoid the risk factors involved while driving. Slight bumps and minor accidents will sometimes require heavy repair costs and buying an insurance coverage is the only way to ensure you are always safe. 

A car insurance is under the principle of lose it or use it. You pay yearly premiums based on what you agree with your insurer. There exists a third-party legal liability. By law, it is mandatory to have a cover protecting you from legal liability in the case of accidental damages that might be resulting in death or permanent injury of a third party. It covers any damage resulting from the surrounding property. 



With various insurers, you can always avail you claim and shop for a policy online. You can use the cashless garage facilities for your vehicle to be repaired. If you use a garage not within the network of your insurer, you can always claim a reimbursement.

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A car insurance will cover you from losses incurring from damage, theft or natural calamities. Every month, there is the amount you to an insurance company and you will be given an assured sum when the need arises. After buying a car, an auto insurance is mandatory. The right steps to end up with a good insurer are: 

Step one: Understand your needs and conduct an assessment

Before purchasing a car insurance, it’s always important to understand the major categories in motor insurance. They are the comprehensive insurance and third-party liability. Carefully analyze and decide the cover you want. This will include the cover details and what is require in the cover. When deciding the coverage, you will take up, ensure you are covered for the amount equal to your car’s value. Be informed on the minimum cover level set by the government.

Step Two: Compare, Contract and Select

Buying Car Insurance


Always compare quotations from other car insurers before you buy a car. It will save you from paying hefty amounts and you get to settle for the best coverage options. The comparison platform allows you to come up with a detailed comparison between the insurance companies based on claim settlement ratio and financial track records. Enquire from other customers of the insurance provider to ensure you have huge savings. 

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Step Three: Get Discounts

Always be on the lookout for any auto discounts that will substantially reduce the burden on your pocket. They re factors for a good driver’s record, anti-theft systems, gear locks, safety equipment and reducing the annual car insurance premiums.

These factors ensure safety, reducing costs of the insurer and all benefits are always carried forward to the consumer. Explore all available options, minor details before you buy a new coverage or renew an existing one. The anti-lock brakes and airbags keep you safe while keeping the insurance bill low. 

Step Four: The Add-ons

The add-ons ensure you customize the car insurance based on the needs you have, adding on to the protection you currently have. The insurance providers have tailored recommendations for the add-ons, specifically crafted to suit your needs based on details such as your vehicle’s age, model and other factors. Invest small amount of money for the additional benefits like the nil-depreciation insurance, personal cover and roadside assistance. The add-ons are likely to increase the premiums, but will provide extra protection to you.

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Step Five: Do not undervalue

Insured Declared Value


Premiums of the car insurance are based on the IDV (Insured Declared Value) of the vehicle. An agent can decrease the IDV of a vehicle so that the premiums reduce. This is unadvisable as undervaluing a car can lead to issues when you are claiming the right amount of money incurred from your loss. Higher IDV implies a higher premium while a low IDV will mean low premiums. Avoid reducing the Insured Declared Value (IDV) so that you save on the premiums. The value of an insurance policy is based on this. The IDV is defined as the maximum amount of money the insurer will pay you. It’s roughly equal to the market value of the vehicle. When an insurance is purchased for a new car, the IDV will be calculated basing on what the showroom listed price is. The Insured Declared Value of a car isn’t constant. If a motor policy is renewed after a year, the IDV will reduce as depreciation rates play a role.

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