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How to compare car insurances?

If you own a car, you are sure to have heard about car insurances and must also be familiar with terms such as deductible and premium. But merely hearing these words is not enough to understand the exact nature of the car insurance industry. You need to understand how this industry exactly works and what are the different sections covered under an auto insurance policy. In short, only the relevant knowledge in this field will help you to choose the right car insurance coverage for your car.

Car insurance will make a dent in your bank balance and if things go well, you will never get anything from it. Here an easy guide to saving money when buying car insurance.
The first thing you have to do is to check your mileage. The first thing that insurance companies look at is your mileage and how many miles you cover each year. So calculate how many miles you travel and ensure that you are not paying for the mileage you have not done.

Daily commute

First calculate how many miles you daily commute takes and then the extra miles over the course of one year. Many of the insurance company website have a car insurance comparison toll which is helpful when it comes to working out how many miles you normally cover.

Make sure that the figure is right because if you go over the mileage this will invalidate the policy.
While it is important to get a car insurance which you can afford, it is equally important that you get an appropriate level of cover.
To ensure that you get the best out of your policy you have to be accurate when you fill out the forms. If any figure is inaccurate then the insurance company will deny your claim.
For instance, if you are the main driver of the car don't put another person's details in to get a more competitive quote.

TPO, TPFT and Fully Comprehensive

Car insurance is a must for UK motorists and there are three levels of insurance cover available, Third Party Only, Third Party Fire & Theft and Fully Comprehensive.

When you are comparing the cost of car insurance, you will tend to look at the Third Party Only (TPO) as it the minimum level of cover which is mandated by the law in UK. But the cheapest quote might not be what you require.
Remember that the TPO car insurance covers only the loss incurred by the third parties that is others, but will not protect you or the car. What is actually means is that it will pay for the repairs of other vehicles involved but not yours.

The second level of cover is the Third Party, Fire & Theft which gives the same cover as the TPO but also covers theft or damage by fire.
Always compare your TPO with the Fully Comprehensive policy which covers you and the vehicle in the case of an accident. This is the best comparable car insurance you can get in the UK.
There are some optional extras which you can look at like, such as, the breakdown cover or courtesy car hire. So make sure that you read the fine print that is the terms and conditions thoroughly before you take out a car insurance.

See also our article about Third Party Insurance

Glossary

There are several kinds of car insurance plans which are offered by various companies. Purchasing a car insurance means that you are buying a policy. Usually, auto insurance policies are a kind of package of various kinds of insurance coverage. Understanding an auto insurance policy means that you need to learn about various types of coverage offered by the varied insurance companies. These include:

  1. Liability – This part of the coverage includes both the accidental bodily injury part as well as the property damages to others. The part of injury damages actually includes medical expenses, pain and suffering and lost wages as well. Damaged property and automobiles is included under property damage which is also likely to include defense and court costs. State laws usually govern the liability coverage part.
  2. Collision – This part of the coverage plan covers up for the damages caused to your vehicle through another vehicle or object.
  3. Comprehensive – Sometimes, loss or damage is caused to the insured vehicle which has not occurred in an auto accident through the means of say fire, wind, hail, flood, vandalism or theft.
  4. Medical coverage covers up for medical expenses which have been caused during an auto accident.

Other section of auto insurance plan which needs to be taken into consideration is the Personal Injury Protection (PIP), Uninsured Motorist, Underinsured Motorist, Rental Reimbursement, etc.

Car insurance in the United States

In the United States, 47 out of the 50 states stress on the importance of having car insurance so it definitely points to the fact that knowledge about this sector is certainly important. Before going on to buy car insurance for your vehicle, it is important to get relevant data regarding several concerning factors such as the kind of car which you possess, you’re driving record and the amount of money you are willing to pay for your car. It is definitely essential that you understand the key basics of auto insurance so that this will enable you to choose the best car insurance policy that is sure to take care of your needs in case you meet with an accident.