Other Factors To Consider Beyond Insurance Rates

April 20, 2017 · Posted in General Articles on Car Insurance 
by Amy Nutt

Many people make the mistake of purchasing an insurance policy based on a cheap price. Although a cheap policy may seem like a good deal, there are a number of policy issues that must be taken into consideration before you purchase insurance. Consumers have to make sure that the policy not only meets their financial needs, but also their personal needs.

Factors to consider beyond insurance rates include:

Customer Service: The customer service department is usually the department a person contacts if they have questions about their policy, or they have a problem. If the company provides substandard customer service, this can lead to a frustrating experience and you may not get the answers you are looking for. Quality customer care consists of a friendly and knowledgeable representative who is ready to help you with any issue.

Policy Claims Department: The claims department is the department a driver contacts in the event of an accident, theft, or damage. A substandard claims department could keep you on hold for a long time, result in a delay in compensation, or even no compensation. You don’t want to have to go through the frustration experience of finding a new insurer because you are dissatisfied with the current insurance provider.

Accident Forgiveness: If you are involved in an at-fault accident, accident forgiveness is designed to protect your driving record from dropping drastically in the insurer’s rating system. Insurance companies will offer accident forgiveness as promotional tool to acquire customers. By having accidental forgiveness, you will be protected from a significant increase in your insurance premium. It is beneficial for a driver to go with an insurance company that offers accident forgiveness.

Liability Insurance: Liability insurance protects you if another person is injured and you are at-fault. You should know what situations you are covered for and how much coverage is provided. Without enough liability insurance or you are not completely covered, you could end up in a devastating financial crisis

Financial Stability of Insurer: An insurance company that is financially unstable and has a poor rating may not have the ability to pay out in the event a claim is filed. It is important to check the insurers rating as this will tell you if they are capable of paying out for claims.

Policy Clauses and Fine Print: In an insurer’s policy, you will normally find policy exclusions in the fine print. It is important to read the policy before signing the agreement so you are aware of any policy clauses and exclusions. Many experts recommend that you don’t buy a policy which does not have a ten day recession clause so you can review everything before you make a final commitment.

Claim Procedures: You should know the steps to filing a claim so you know how complicated it will be and what possible impediments there may be to receiving compensation. You will then know if it is the right policy procedure for you.

Low insurance premiums can be a great way to save money. However, you should know all of the “ins and outs” of the insurance policy and the insurer to make sure you are getting the best value for your money.

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