subject: Important Considerations When Buying an Auto Insurance [print this page] Important Considerations When Buying an Auto Insurance
We get lost in the midst of hundreds of offers in the market on auto insurance. The internet alone is flooded with websites promoting particular insurance companies. Quotes are being offered online for free to entice prospects to check into the offer more seriously.
The company
The reputation of the insurance company matters. It is like buying stocks that you have to examine the profile of the company and its current status. With the present economic status, it is not remote that insurance companies may go bankrupt. You of course dislike the situation where you have to go further by filing claims against your insurer in the future.
Also note that the same set of coverage may be quoted in a range of variances from one company to another. Most often, this is affected by the financial factors that are peculiar to every particular company.
The Policy
Carefully examine the policy that is presented to you. At a glance, policies from different companies may appear the same and you may even notice some words that are similar. This is because of the fact that underwriters are following a pro formal guide when creating the policy. Check on the individual provisions of the policy and consider if it matches your need.
What are covered and what are not covered
Even though you may not understand all the legal implications of the wordings of your policy, you must exert an effort to understand what perils or circumstances are covered by the policy that you are intending to buy. Basically, what is not expressly included is deemed excluded in the coverage. Do not assume that a particular circumstance is covered by a related provision in the policy. Be sure to make clarifications if you have doubts.
What negates your insurance claim
Before deciding to buy particular auto insurance, be sure to fully understand what the circumstances are when you incurred loss due to an accident yet, you may not recover anything. This is important because the very reason why you are buying auto insurance is to be compensated when you incur loss or damage.
Losing control of your vehicle because you are drunk may result to the denial of your claim even if you have incurred a total wreck.
Someauto insurance policies may contain a provision prohibiting the car to be utilized as a sightseeing car for compensation or carrying passengers for fee. This may also preclude claims.
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