Friday, January 28, 2011

What you must know before buying car insurance

Car insurance can be very tricky especially for those who are purchasing insurance cover for the very first time. Below I have mentioned few guidelines that one can follow to get the right cover at good price.

The first and foremost thing a person seeks is obviously protection at reasonable cost. Due to high competitiveness in auto industry one can get multiple quotes by going online and checking different auto insurance companies and the products they have to offer. Prices will vary with different insurer companies even vehicle has same model and other things.

Before purchasing insurance cover one should look for an insurance cover that suits your needs, also keep in mind that insurance laws vary from one state to another. Each state has mandatory coverage in three sections like medical,property damage and body injuries.

While most state laws depends on basic coverage where damages caused due to your faults such as damages done to other vehicle as well as injuries etc. It could be that damages to your vehicle due to theft or acts of vandalism will not be covered.

The state will not require you to have a full coverage. If your vehicle is on lease or on a finance scheme, lenders will force you to have full coverage as per their terms and conditions in the agreement.

Some of the banks and finacial institutions play nasty games against working people where they literally steal their wealth.Most people don't realize that have paid much more than what their vehicle is worth. People realize only when their vehicles are at total loss and the reimbursement they get is less than the outstanding balance.

Hence I suggest you all people to purchase something called gap insurance as this is the best bet. this will cover the difference between what the vehicle is worth and the outstanding balance in case of a total loss.

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