Why is it important to know your car insurance coverage?
Getting a car insurance can be financially burdensome for others. That’s why it’s of paramount importance to know the value your penny is being spent on. Believe me, I know the feeling. Having to purchase my first car without understanding what the coverages are, made payments arduous every time.
More than anything else, understanding your car insurance policies not only lets you know where your money is going. It also tells you if you have the right protection given your needs and lifestyle. Knowing that you have the right car insurance makes you more confident and could give you peace of mind.
10 Benefits of Car Insurance:
- Eliminate or minimize repair costs: Most standard insurance policies cover repair costs of vehicles you damage if you are at fault. This is the bare minimum. It is important to note though, that an optional collision coverage can reimburse costs for YOUR car relating to accidents with another vehicle and/or object (gutter, lamp post, mailbox, etc.). It can also cover normal wear and tear, and mechanical failure. Meanwhile, there’s also an optional Glass coverage that can answer for side and rear windows, and sunroof. This is particularly helpful since there are moments when misfortune arises. Of course we wouldn’t want to hit our neighbor’s mailbox. But you know, sometimes it just happens.
- Payment for stolen car: What would you do if one day, you find yourself going to the parking lot and discover that your vehicle isn’t there anymore? Who do you call? How do you try to recover it? What do you do if you’re NOT able to recover it? Should you just buy yourself another unit? There are car insurance policy coverages that will reimburse you for the current market value of the lost vehicle. Remember that assets such as automobiles are annually depreciating. This means that the reimbursable amount will be much lesser than the amount you paid when you purchased it. Not an ideal case alright. But it’s still better than going back to your daily commute with nothing while sulking at your loss.
- Personal and passenger accident coverage: Just like other insurance types, car insurance policies cover personal accidents valued at a pre-determined amount. Some use this as an extension of their current health insurance coverage. Personal accident protection includes injuries, rehabilitation, permanent disability, and death. What’s even better is it can also give protection to passengers inside your vehicle during an accident. The inclusion can cover until the maximum seating capacity for a pre-determined amount. This means covering for medical bills, doctor consultation, and surgery.
Personal and passenger accident coverage is essential in accidents and can be a life-saving factor. Since you are assured that medical costs can be covered, you and your passengers can avail of quicker treatment and medical intervention.
- Third-party liabilities: This simply means coverage on damages of any third party from accidents where you are at fault. This extends up to legal liabilities should there be sustained injuries, disability or death of a third party.
- No Claim Bonus (NCB) discounts: The term, “No Claim” simply refers to the number of years you haven’t made a single claim against your insurance policy. The bonus recognizes your standing as a “claim-free” driver, and incentivizes the policyholder just by maintaining this good standing. No Claim Bonus is usually given as a discount on the premium, which eventually makes the insurance more affordable.
How do you exploit this benefit? Most insurance companies give 1 year of NCB after a claim-free year, while there are others who can possibly give after 10 months. It’s possible to build on your NCB, but there are companies that only consider up to five (5) years for the discount.
- Saves time and money: Evidently, if your insurance policy covers pretty much everything damaged in an accident, chances are you’ll be saving tons of money without spending a dime (save for deductible costs, of course). On the other hand, it can’t be denied that accidents can result in time-consuming submission of requirements, processing, negotiating, and whatnot. Getting yourself comprehensive insurance from great insurance companies will make you feel there’s someone reliable to help you in times of need. This saves you a lot of headaches and sleepless nights. From as simple as towing, and repairs, to damaged properties and medical assistance, insurance companies can significantly play a role in that area.
- Customer support: Encompassing all other industries in the market today, customer support is crucial for after-sales service. It is essential in maintaining clients especially since insurance companies rely on policy renewals. When new customers and renewal of policies stop coming in, they will go bankrupt. Therefore, customer service should not fall short in keeping their customers happy and satisfied. Insurance companies oftentimes encourage going the extra mile in maintaining good customer relationships. This means tending to inquiries, responding to claims, quick and hassle-free processing of papers, etc. To be honest, customer support in the form of service is much more challenging compared to offering products in the market. This is because products have a standard level of quality which can typically be seen and checked. However service satisfaction is mostly subjective, and there are irate customers that are just very hard to please. Insurance companies keep this in mind by having a structured customer process flow that aids their agents in rendering top-notch service.
- Protection against flood and natural disasters: In a society where global environmental disasters such as typhoons, hurricanes, earthquakes, and floods cause catastrophic effects, insurance policies can greatly help during rebuilding since most comprehensive policies can answer the costs and expenses related to occurrences classified as “acts of God.”
- Protection against fire: This means coverage on any damage related to fire such as explosion, self-ignition, lighting defect, etc.
- Optional Services: Some insurance companies go the extra mile in making their customers happy. This means giving them optional services like:
- Roadside Assistance;
- Engine Protection;
- Passenger Cover.
Discernibly, there are many advantages when getting your car insured. However, with so many insurance companies out there, you might find it difficult to identify where to begin. Start by researching online. Check out different insurance companies and the coverage offered per insurance policy. Contact agents and don’t be afraid to ask questions. Remember that identifying what you need can help them offer you a good package.