Have you ever been in an accident and had to pay for your car and the other driver’s car repairs? How did it feel? It certainly did not feel good, and now you see the need to get auto insurance as soon as possible.
However, before getting insurance for your vehicle, there are some things you need to know about your insurance policy. This article briefly defines auto insurance and discusses questions to ask before buying one.
What is Auto Insurance?
Auto insurance is an agreement between you and an insurance company that protects you against loss of money in the event of an accident or theft. The insurance company agrees to recover your losses as specified in your policy in exchange for you paying an annual premium.
Questions to Ask Before Buying Auto Insurance
Who and what does my insurance cover?
Does the policy cover you or only the other party? You need to know the type and coverage of the auto insurance you are getting. Third party insurance covers the damages and losses to the other person’s car. Comprehensive insurance, on the other hand, covers both the third-party damages and yours. It is imperative to familiarize yourself with the details of what you’re paying for.
Will my policy cover other drivers of my vehicle?
You need to ask this question to avoid getting comments such as “You were not the driver at the time of the accident.” For some insurance companies, paying claims is dependent on whether or not the driver of your car has authorization by you (the policyholder) to drive it.
For example, if you (the policyholder) gave a friend permission to drive your car and they had an accident, the insurer will still pay claims since the car is registered under the policyholder’s name.
How is the price value of my car determined?
This is important to ask as your insurance company has a way to determine the value of your car which reflects the amount to pay for your insurance. Also, the value placed on the car might be lesser than you thought so the best bet is to ask.
How soon will my car be repaired following an accident?
When a car gets towed after an accident, it is important to know how soon it would be repaired. Decide if the timeline stated in the policy works for you. If not, you can find another insurer with a shorter time period. The only way to gain such clarity, especially if it is not stated in the inquiry form, is to ask.
How much do I pay to get started on my auto insurance?
This largely depends on your budget and what you can afford. Various insurance companies have different prices for their auto insurance. Third party insurance is the cheapest auto insurance policy while comprehensive is more expensive because of its wider coverage. Weigh your options and choose what best suits your need.
Read more here on the difference between comprehensive and third party car insurance.
How To Get Auto Insurance
Now, we know what auto insurance is, and what to ask before purchasing one for our car. Ready to get started? Choose a plan from Leadway Assurance auto insurance plans and enjoy complete protection with millions of other Nigerians.
Leadway is an insurance company that offers a variety of benefits for each level of car coverage you choose. We offer detailed car insurance that covers loss or unintentional damage to the insured’s vehicle as well as third-party car/property damage or death.
For more information on the array of insurance covers available for you to access, please visit Leadway or call the Leadway Assurance Financial Management Experts on 01-2800-70 or email [email protected] for professional advice. You call also Request a callback.
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