People are always looking for savings especially since the cost of everything is rising, what seems like, every day. It’s not surprising that people want to save on their car insurance. But when you consider changing insurance companies make sure that you understand the full scope of what you’re signing up for.
Insurance companies can match quotes or even offer you a lower premium but sometimes it doesn’t cover all the aspects you had before or there are certain conditions that must adhered to so you need to be sure before you change companies.
Here are a few things you need to check:
- Does the new insurance company offer you a courtesy car? If you are in an accident do you get a courtesy car? You need to check the conditions. It could offer you a small basic car and not the same type as what you have. It could be available for 30 days. It could only be available if you make the accident away from home, like if you’re in another province. It could offer no courtesy car at all.
- Does it cover the retail or market value of the car? You need know whether you will be able to get the same car you had before the accident. Or will the insurance only pay out what the current market value of car is?
- Make sure that all specifications are included. This is particularly important if you have made modifications to the car. Will those new mag wheels or that bespoke sound system be covered?
- Will contents that were in the car at the time it was stolen be covered? If you left your phone and laptop in the car when it was stolen, will those items also be covered?
- Make sure you know what the insurance company means by loss. There are different variations of this term so you must check what type of losses are covered.
- How much excess will you need to pay? You may get cheaper car insurance but you may have to pay more excess. Will you have to pay excess for windscreen repairs or clutch repairs? Are you prepared to pay a higher excess for a lower premium? Could you afford the excess if the unexpected happens?
Changing car insurance companies is not that difficult. It’s just a bunch of admin, but you need to be fully aware of what you are getting. When the unexpected event happens, it is good to be armed with the necessary information.