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Get covered Before you hit the road: Top 6 Insurance Tips for Car Buyers

15 May 2018 No Comment

According to Canadian Living, “There are more than 100 insurance companies in Canada competing for your business. Some do not write coverage in every province, and regulations vary from province-to-province.

But, as every Canadian knows, you must get covered before you hit the road. So, here is some timely advice.

Top 6 insurance tips for car buyers:

  1. What insurance do you need? You need to at least meet the minimum requirements of the Province. But, the cost of meeting those requirements can depend on your vehicle choice.

So, while you may want a sports car, convertible, or a luxury sedan, you may not need one when you consider the cost of insuring a dream. You must remember the car with the leading celebrity, the one with the sexy model, and the fastest one on the road all come with a price and an insurance premium to go with it.

  1. What does your record say? Insurance is built on the theory of spreading risk, so insurance companies won’t survive by insuring those with the worst driving records. Some small insurance companies do insure risky customers, but the risk shows in the premium price.

In general, you don’t want to be shopping for insurance when you have a cluster of driving tickets on your record. The older the ticket the less impact it has, but recent tickets for speeding, reckless driving, and driving under the influence will affect your insurance premium.

  1. What do you know about the insurance company? You owe it to yourself to research the insurance company and its competitors. It’s so much easier when you know how to work the Internet.

You should take notes and comparative shop especially if this is the first time you are insuring a car. You want to know how the company stands in the industry, how its claims record stacks up, and where you can reach a customer service representative.

  1. What do you know about the insurance policy? You should be clear about insurance terms and conditions like liability, collision, comprehensive, and deductibles.

You must know when and where payments are due and if you can convert annual premiums into monthly payments. You need to know what happens if you are delinquent with a payment, And, you should know how to make a claim and what process to expect.

  1. What can you pay? Mandatory price disclosures are helpful, but there is always room for negotiation over price. But, there is a difference between what you are willing to pay and what you can pay.

You must spend time with your budget to determine what you can afford as a down payment, what trade-in you might expect, and what you can pay each month without impacting your other budget plans.

Insurance costs will vary with car models, safety devices, replacement value, and more. You can insure your car with Belairdirect to get competitive pricing and benefits. They will reduce your premium if you insure your home through them, too. And, they offer an app that can reduce your price by 25% by measuring your driving habits.

  1. What discounts might help? As Consumer Reports says,Car insurers offer a whole range of modest but worthwhile discounts that are essentially based on a low-risk lifestyle.”

If you ask, you may discover the insurance vendor provides high-impact discounts for good school grades, driver-training courses, defensive-driving training, or membership in certain groups

Before you hit the road —

You owe yourself and other drivers the safety and security of a well-operating vehicle. But, the law also requires you to secure and prove adequate insurance coverage for car and passengers before you hit the road.

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