Car insurance is a legal necessity. It is as essential as having a car. Most car insurance companies charge higher premiums for drivers under 21. However, there are cheaper insurance options, too. You need to be careful while selecting cheap car insurance options for those under 21 and avoid the following mistakes.
Not Comparing Options
Not all insurance policies are created equal. Some insurance companies offer cheaper insurance, but their service may be inadequate. In case your car meets an accident, it can be tough to file a claim and get money for repairs. Some insurance companies charge higher fees but offer good service. Other companies like Freeway Insurance are known for cheap car insurance with great service.
Look for balance in the insurance fees and the service. Firstly, you need to be comfortable and satisfied with the coverage and the level of protection offered. You can visit websites of several companies or agents offering cheap car insurance for under 21 and request a free quote.
It will help if you compare the quotes and the level of protection offered by each insurance policy. Several dedicated portals allow you to compare car insurance policies from different providers. Just key in the details and learn about the options.
Giving More Importance to Lower Premium
A lower premium doesn’t always mean the insurance policy is beneficial for you. Initially, you might feel you will save a lot by opting for insurance with a lower premium, but it may backfire on you. Car insurance policies with lower premiums also offer the lowest level of coverage.
For example, the policy might not include uninsured or underinsured motorists or property damage liability. In case your car meets an accident, the damages may become your liability.
Hence, it is always a good idea to stay safe than feel sorry later. You also need to give considerable thought to the level of coverage offered. Make sure the level of coverage is neither inadequate nor excess. Here are the key things to check in coverage:
- Types of damage covered
- The maximum amount offered for the damages
- Coverage for you and the injured
- Coverage for injury to 3rd party
- Coverage for damage to property
Not Reading Terms and Conditions Before Signing the Document
Many times a salesperson skips important points while selling insurance policies. Be alert when purchasing a car insurance policy. The “Terms and Conditions” have legal importance and binding to both parties. Hence, spend time reading and understanding the “Terms and Conditions” before signing along the dotted line. Some of the integral things to look for include:
- The claim should be processed within a 48-hour frame. The policy document should mention the timeline of processing claims.
- Check the declared insurance value of your car. Generally, newer cars have higher insurance declared value while older cars have lower IDV due to depreciation in their value. Make sure the IDV is not too less as per the age of the vehicle.
- Check the car’s make, model, year of manufacture, and other details are mentioned correctly.
- Check if the company offers a No Claim Bonus.
Buying Unnecessary Add-Ons
The primary objective of getting cheap car insurance for those under 21 is to keep the premiums low. However, most salespeople trick you into purchasing add-ons that increase the premiums. It helps if you stick to the necessary coverage to keep the costs in control. Some unnecessary add-ons that raise premiums are:
Selecting the Wrong Car Insurance Provider
The car insurance policy and the provider are two different things. According to insurance experts, you should give equal importance to the car insurance company. You need to buy a policy from a company that honors its commitment and strives to provide the best customer service. Here are some characteristics to look for:
- A Network of Garages – The insurer should have a network of garages spread across the country. This is important for several reasons. First, you can get your car repaired easily without having to pay cash. Second, a wide network of in-house garages ensures you don’t have to travel far to get the services.
- Claim Settlement Record – A good insurance company would have a high claim settlement ratio. You need to check the track record of the claim settlement of the insurance company.
- Online Presence – The carrier should have an excellent online presence. In simple words, it should allow applying for insurance and filing for claims online. The company should also offer 24X7 phone assistance to help its customers.
The tips given above will help you choose an acceptable car insurance policy at a lower rate without sacrificing safety.