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10 Things You Should Consider Before Buying Auto Insurance

10 Things You Should Consider Before Buying Auto Insurance

If you are a vehicle owner, you might want to mitigate the costs associated with getting into an auto accident. Paying annual premiums to an auto insurance company can be a technique to practice.

Before you enter the road with your brand new car, you wish there wouldn’t be any possible disaster. But there are lots of things you should ponder before paying annual premiums to an auto insurance company.

A renowned auto insurance expert once said that many people pay between $500 and $1,500 more than they have to for car insurance each year. The amounts you need to pay radically vary depending upon your age, gender, accident and moving violation history, driving experience and many more.

So, you must contemplate certain aspects of insurance before buying any of it.

1. Coverage

Buying the minimum amount of coverage mandated by your state can save you some money of your pocket, but it can’t be a better option for you. You might also consider some other natures of coverage such as comprehensive, collision, uninsured and underinsured motorist protection, and personal injury protection.

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What comprehensive plan does for you is that it pays for non-crash incidents such as fire, natural disaster, theft etc. Collision covers all sorts of repairs for your car ignoring what the fault is.

If an uninsured or underinsured driver hits you, uninsured and underinsured motorist protection can cover the cost of car repairs. And personal injury protection, as the name suggests, pays you all medical expenses and lost wages if someone hits you or your passenger.

2. Brand

Brand distinguishes one insurance company from others. You should think before choosing one, for your motor trade insurance. You can only rely on a better brand than the one which you haven’t heard of.

When you make a claim to any insurance company, you can see the moment of truth for customer. As auto insurance is portable, you can swing to another insurance company without the loss of desirable benefit.

3. Customer care

Will the insurance company open for 24 hour? Do they provide one of the fastest insurance policies in the market? These things matter the most now days in auto insurance market.

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Seeing your car stuck in between the tree trunk is less painful than knowing your insurance company will open only after two days from the incident. With the competitive market around the globe, plenty of insurance companies now offer 24 hours a day and 7 days a week service. So, either way, you can contact with the provided toll-free number or online.

4. Payment option

Instead of paying an annual lump of sum, most people would love to pay the premium in monthly installments. You must choose your plan to pay depending on your current situation.

Most insurers offer at least annual and six-month premium payment option with some discount. But the fact is that, you wouldn’t get as much discount on monthly basis payment as on annual basis. Hereafter, make sure to choose between your options before choosing any auto insurance plan.

5. Your driving record

Your driving records are openly linked with the cost of your auto insurance. Higher you drive off the road, higher is the cost you have to pay for insurance. Even, some minor traffic violations can be upsetting for you.

Those unpleasing records can be a sign of increased risk for any insurance company. Hence, insurance cost increases for you. Thus, summarizing the facts, higher the frequency of accidents in the past, higher the cost of insurance and vice versa.

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6. Lying is not a solution

Give factual and detail information to the insurance company you are looking for. Giving some made-up information can save you few bucks, but it’s totally a risk. If you get caught, the chances are so high for you getting a severe punishment. You could face higher rates or may be plunged out from the insurance plan altogether.

7. Location, age and gender

If you are younger than 25(generally), then there is a high probability that you must pay more. Most of the insurance industries consider young and male drivers as a risk. Also the statistical data proves that younger lads are highly prone to accident.

Also, the insurance company expects you to pay more if you live in densely populated and bigger cities. Chill out, if you are in rural or suburban areas. Also, insurance rates tend to fall gradually after you reach 25.

8. Discount

With the world being competitive moment after moment, your strong bargain skills can be beneficial for you. You can convince them soft as cotton, eventually making them pay your discount.

Exploring all your options relating to discounts can be a good drill before buying any insurance. Depending on your profession, your vehicle’s current status and driving record, the discount you are going to get varies radically.

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9. Company’s track record

Making price and coverage comparisons while stirring from one company to another is not a big deal for you to practice. With all the records and information of the companies on your fingertips, you can choose your ultimate insurance company comparing the monthly rates for different types of coverage, customer service, location and other different payment plans.

You can review the customer satisfaction between different companies obtained from surveys or can also rely on the information acquired from your friends and relatives. The positive response from reviews as well as from friends and relatives can be a key to open the door of respective insurance company that you are searching for.

10. Ask questions

Before initiating auto insurance, you must consider certain things. You have to think of certain risk assessment, coverage of policy, what will be the deductible amount, value of vehicle the company is willing to set, etc.

You must ask about different cancellation rules. Every policy has diverse rules and it’s important to know what they actually are. If not accessed properly, an accident can drop you from an insurance plan.

Featured photo credit: Flickr via farm9.staticflickr.com

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Nabin Paudyal

Co-Founder, Siplikan Media Group

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Last Updated on December 18, 2020

Can Technology have Biases Like Humans?

Can Technology have Biases Like Humans?

Technology has taken a vantage leap in providing solutions for man. Before now, technology used to appear complex and would require a great deal of expertise to handle solutions available. Today, we have technology applicable in the simplest human activities as smart products with intelligent algorithms powering them as they make error-free judgments and provide intelligent and analytic solutions.

Does technology have all the answers?

This article from Credit Suisse, tells us that technology does not have all the answers because it has been found to exhibit “similar biases,” as humans. No one can discredit the impact of technology, but it is not totally free of human input and this is the reason we experience these biases in many areas we have technology holding foot.

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Creating technological solutions transparently

This article suggests that the process of creating technological solutions be made transparent and subject to contribution from many people who would end up as users of the product – male, female, young, old, learned, unlearned and all other preferences as we have them. It also underscores the importance of having women on product development teams. This approach is not sure to eliminate all forms of bias, but it is a good way to start in order to appraise the full benefits of technology.

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Technology as the connecting tool

Technology so far has been a major connecting tool amongst us humans. It is used and appreciated by all regardless of race, language and sex. In order to keep it less subjective to these arguments about human biases. I believe we should gather opinions on products and solutions before making them available to the public. This could be done by gathering input from intended target users and receiving feedback across the stages of production.

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“Recognizing the problem is a start…success will depend on inclusive technologies that meet this vast untapped market.” This cannot be more apt especially at a time when we look up to technology for solutions. We should not muzzle our progress with technology by battling algorithm bias. The first way to avoid this battle is by reading this article here.

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