Insurance company: How to buy car insurance? (Part 2)

In the previous article, we were discussing about kinds of insurance that general insurance company provides and which is the insurance type that you should buy. When buying insurance agaisnt theft for high class cars, you need to learn if car parts will be replaced with totally new ones or equivalent old ones when accidents occur. Three terms that you should persuade company insurance to cover in the contract are: no deductible for replaced terms compare with the old ones, rights to choose garage and water hammer benefit. Let’s learn more about other definitions that you should know when buying car insurance.

Insurance company: How to buy car insurance? (Part 2)

Definition of deductible

Deductible is a common term in insurance industry. This term is about customers who share risks with insurance company in each damage. For example, if your deductible is 1 million VND, you won’t get reimbursed for losses that cost lower than 1 million VND. You have to pay for you loss on your own. However, if your loss is up to 100 million VND, you will pay 1 million VND and insurance company will pay the rest of money.

You will pay the higher premium if not choosing deductible. The higher the deductible is, the lower your premium is. In fact, when customers accept to pay high deductible, they tend to drive more carefully to avoid small losses. This is an economical way to save cost when buying insurance and if you renew your contract, you may pay lower premium.

How to save money when buying insurance

How to lower the premium you have to pay insurance company? Some following ideas may be helpful with you. Premium for the same kind of insurance is different from insurance copanies and it is up to the provider that you choose. Therefore, you should take price quote request of at least 3 companies to make comparison. An insurance company may offer you lower premium but they have strict regulations. You’d better ask for advice from your relatives or acquaintances who have experiences in using cars and buying car insurance.

Learn about services of the insurance company is something you should do. You should choose the insurance company which collborate with trusted garage and it is convenient for fix or travel. You should also learn carefully about the collaboration rate between two parties to avoid travelling a lot due to complex procedures.