Some consider that car insurance is not important, while some say this is a need that cannot be underestimated.
Having a motor vehicle at this time unconsciously has become a primary necessity. Cars are considered to be the most important asset and lifestyle.
Along with that development, in April 2011 The insurance business has experienced considerable growth since the year 2010.
Fortune and disaster can come at any time. As a driver, we strive to be a good driver. We've been careful on the road, wearing a seatbelt, giving the lights to the right or left, turning on the spotlight as other motorists are about to break through our path and as much as possible to comply with traffic regulations. It can be obvious, we've tried to follow all the rules of the road, but not necessarily others.
Buying car insurance is one of the most important financial measures. The benefits will be much greater than the number of premiums that we pay. So, if car insurance is so important to each owner, then what should be considered in order to make the purchase of insurance a wise and highly beneficial decision?
Choosing Car Insurance
There is a premium that we must pay to buy insurance. Of course, this is a must. From the magnitude of the premium can determine how far the limits of our losses. This means that regardless of the risk, our losses are just the amount of premium money paid. If calculated in mathematics, we may feel more loss if the damage or disaster that befalls the car is smaller than the premium paid. But do not forget, if the damage happened much greater, then the loss that we bear is not as big as it happens.
Basically, the insurance is good. But to choose it requires a variety of other considerations. You must have the right insurance and according to the conditions. That way, your financial plan will also remain on the smooth track. Here are important things to be aware of when choosing car insurance.
1. Types of Insurance
In general, car insurance has two types of packages, namely Total Loss Only (TLO) and All Risk. On the type of TLO, the service provider only replaces when you experience losing a car. While All Risk is usually more reimburse for theft, accidents and other conditions such as riots, floods and unpredictable things that are threatening, depending on the conditions you desire.
2. Deductible Fees (own risk)
The nominal amount we must pay when it claims to be claimed. The amount varies depending on the policy of each insurance service provider.
Because of the loss of various forms of losses, All Risk car insurance generally has a greater number comparison than TLO. The All Risk tariff ranges from 2.5% – 3.5% of the actual car price. You are not recommended to find a cheap premium. But pay close attention to what are the benefits are given, such as free car crane, 24 hours servicing, replacing car tires, repair workshops, and many more that if small but very helpful.
4. Vehicle Age
The older the age of your vehicle, the premiums will also be higher. For some insurance, they usually restrict it to a period of seven to 10 years. On top of that, you can no longer use insurance.
5. Workshop Partners
The more workshop associates are provided, this will certainly help you. But we also can not be off guard with the quality of the workshop.
6. The Location
Buy car insurance in the city where we are located. Sometimes insurance agents originating from outside the city often offer cheaper services. However, if this does complicate your mobility space, for example, when making a claim, it will certainly only add to the hassles.
For women, like us, it is good to choose which provides comfort such as 24-hour facilities and a mechanic ready to serve where we are. One stop call.
On the way all can happen, you can't avoid the case of a flat tire because nails or leaks suddenly are unconscious. It is no longer the time for us to stand by the roadside, wave or ask the pedestrians to help you replace the car tires. It's a little thing, which if it happens it will feel annoying and waste time. So, pay attention to the title "Ease of claim" and "call service" on the offer provided by your insurance agent.
Weighing All Aspects
Car insurance includes the type of insurance losses that the value of the premium will expire if you do not make a claim. But nowadays, there is a type of car insurance that gives guaranteed premium money back up to 100%, ask this to your insurance agent.
Typically, the value of coverage for the first year is based on the purchase price of the vehicle or market price upon closure. It can also be by the acquisition price of the vehicle as per invoice, while the next year is calculated based on depreciation. Here's a general overview often offered by insurance agents;
- The second year is 90% of the first year coverage.
- The third year is 80% of the first year coverage.
- The fourth year is 70% of the first year coverage.
- The fifth to eighth year was 60% of the first year's coverage.
The next question is, should we choose combined insurance that feels more practical? There is some car insurance that provides facilities in the form of life and health insurance. And if you agree with the offer – on the big premium rates paid – next don't forget the little things like how much life or health insurance is being given, whether it has been quite significant and beneficial to you. I recommend taking it separately.
Next Set Up Your Cash Flow Finance
Having car insurance is just like buying goods that have obvious benefits, but not necessarily used. In other words, these items will disappear within a certain period of time, used or unused.
Car insurance payments are generally paid in a matter per year. So, the wise you do is input this expense into your annual cash flow category. When you get a bonus or another annual income, it's time for you to set aside an annual fee and settle a payment that is "mandatory" issued, including motor vehicle insurance. If you do not have an annual income, then the first time insurance payment should be done with personal savings, and furthermore, you can reserve a monthly income for insurance payments in the next year.
Even so, buying car insurance can be one way to better control your financial plan. The financial risks we face are more clear and planned. All you need is to allocate a number of insurance premiums per year.