5 Important Things to Take Note of When Buying Car Insurance

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People are usually skeptical when buying car insurance because there are too many technical jargons to understand. Even after going through them all, most end up buying the wrong coverage that doesn’t come to their rescue in times of crisis.

Instead of understanding them all, you can consider knowing the five basic and most important things before applying for a coverage.

Premium and Deductible

These are the very basics that matter the most. Obviously, the premium is the sum you pay to the car insurance company to offer you their services and coverage. The entire amount will be split into monthly or quarterly so that it is easy to pay it. Paying upfront will get you good discounts, but you may have to negotiate it with the company. The deductible is the sum that you have to pay to repair your vehicle in case of an accident. If you can’t pay higher deductibles when an incident occurs, it is better to increase the premium than face unexpected expenses when you are out of cash.

Limits on Liability

Not all car insurances are the same because every company will have different limits on liability. Most companies have the policy of paying 25-50-25 which denotes that they will pay $25k for an injured person, $50,000 for the damaged vehicle and the rest $25k is for damages that occur to a property. Based on the type of vehicle you use and expenses it may incur in case of an accident, you can choose to increase your premium to increase the company’s liability.

Type of Insurance you choose

There are different types of insurances that you can go for. Liability insurance and collision coverage is the most popular of them all. Liability is helpful if you are still learning the nuances of driving. In case of damage to another vehicle, property or person, the company will pay them on your behalf. The laws will vary from one state to another. Collision coverage is helpful where the company will pay to help you repair your vehicle in case of an accident. The other variants include comprehensive coverage and UMPD.

Personal Injury Protection

While there are multiple types of injury coverage offered by the car insurance company, personal injury protection matters a lot. PIP makes it easy to cover medical costs for the driver as well as the other passengers in the car. It even covers a pedestrian if they accidentally get involved in the collision and get hurt so that you don’t have to pay anything out of your pocket.

Depreciation

Depreciation is an important aspect that companies don’t elaborate, but something you should know in depth. If you have been using your car for a long time, you may not be able to make huge claims as its value depreciates over time. In such scenarios, ensure that you either reduce your premium or consider replacing your old car with a new one so as to make proper claims from the car insurance company.

Insurance Quotes are higher for Hybrids than Gas Vehicles, New Survey Reveals

In the past couple of years, hybrid cars have gained great momentum because they are exceptionally fuel efficient, meet eco-friendly standards and have great drivability factor when compared to the conventional vehicles.

Car manufacturers have accomplished such feats because of the fact that they were able to use lightweight parts, better batteries and altered the shape of the vehicle as they wanted to. It plays a crucial role in allowing the automobile manufacturers to come up with hybrid vehicles that offer good mileage. However, a recent survey confirmed that even though hybrid car owners have the opportunity to save money they may have to face increased insurance costs which eat up some of their savings. To avoid this situation, car owners must be aware of the insurance quotes that are on offer.

The overall cost of acquiring a vehicle insurance is at least 7% higher than gasoline counterparts of the same models. When users pay $1841 for a Honda Civic gasoline variant, they have to shell out $1817 for the hybrid variant, but it is probably among the least number of vehicles that cost lower. Every other model including the Hyundai Sonata, Subaru XV Crosstrek and Toyota Highlander cost higher than their gasoline counterparts.

The Highlander cars demand the highest insurance quotes. This is because you have to pay $1,686 for the gasoline model while the hybrid insurance will set you back by $1,884. That’s a solid 11.8% increase, but on an average, all hybrid models, be it SUVs, sedans or other types of vehicles, they cost 7% higher than their petrol, diesel counterparts.

According to the study, hybrid cars occur higher insurance costs because they usually cost more in the market. If a vehicle gets damaged or stolen, the company may have to pay extra when compared to a gasoline powered vehicle. They also have to cover repair costs which are much higher for hybrid cars due to expensive spares. The job can be handled only by professionals who have the experience in repairing such vehicles which adds up to the overall cost. From a company’s perspective, the increased premium is completely justified.

However, from a consumer’s perspective, it looks like they may have to pay additional costs which debunks the whole idea of owning a cost efficient vehicle. Besides, they are eco-friendly as they don’t have emission issues. There are specific companies that offer insurance at competitive rates. If you are planning to go for a hybrid, you should consider signing up with these brands in order to keep expenses under control.