Short term car insurance

Questions to Ask Your Insurer Before Purchasing Short Term Insurance

(check here for a quote:www.e-personals.info/short-term-car-insurance.html)

Most people know that they have to go for an insurer who offers affordable premiums on their short term car insurance policy. However, cost and features of the policy are not the only things that should be considered. There are other things that can affect the overall suitability of the policy. Below are some issues you should have clarified.

a) What is the company’s schedule on no claims discount?

If the company offers discounts on no claims, you can enjoy significantly lower monthly premiums. However, this is not simply a matter of comparing and subtracting the discount amount from your premiums. You have to consider how much discount you will be getting for each extra year that you do not file claims and at what point the discount will not help in reducing your costs.

Also, find out what will happen in the event of filing for a claim. Most insurers will still allow you to keep part of the whole amount of discount as long as you have only filed a single claim during a two year period.

b) What discounts are offered by the company?

Some companies offer discount to customers who have taken deliberate measures to make their cars safer. These measures can include fitting the car with security devices such as alarms, anti-theft locks, and airbags. Other companies also offer discounts to senior drivers, high school and college drivers who maintain good grades in school, those who have a good driving history, those who take refresher driving courses, among others.

The discounts are usually a percentage of the total payments and they can significantly reduce the cost of your premiums.

c) Are there administrative charges for policy cancellation or amendments?
In case you wish to make amendments on your policy or even cancel it, there may be some administrative and processing fees you may have to pay. Some insurance companies will not refund you the full amount of the “unused” policy while others will completely forfeit it.

Before purchasing a short term car insurance policy, go through the terms and conditions of the insurer to discover all the potential fees you are likely to pay. Apart from administrative fees, there may be penalties for late payments too. All these will make your premiums more expensive.

d) How are premium costs affected by payment methods?

Some insurance companies give discounts to customers who pay by debit card or cash. On the other hand, others allow customers to pay monthly instalments but in return charge a higher premium for this. Before you sign up for a policy, find out how the cost will be affected by the type of payment method you choose.

Typically, paying the premiums as one lump sum is cheaper in the long run than paying in monthly instalments.

e) What is the company’s policy on repairs?

Different insurance companies have different rules regarding repair when your vehicle has been involved in an accident. Some will allow you to take the car to any reputable repair shop and then send them the bill while others will require you to choose from a list of designated repair shops. Still, other companies will let you choose your preferred repair shop subject to their approval.

Find out from the insurer where you will be required to have your car repaired in the event of an accident. This can save you from shouldering expenses on your own and failing to get compensated by the insurance company.

The above are some of the things you should ask your insurance company before you purchase a short term policy from them..