If you own a vehicle here in Bahrain, chances are that you’ve just bought an insurance to serve the legal demands, and have buried it without too much thought. Most people don’t consider the impact of making a haphazard and reckless choice when buying car insurance. If you want to have a good night’s sleep, it’s important to invest in a robust and comprehensive insurance package tailored for your needs.
In this article, the Souqalmal.com team discusses how you can avoid getting stuck with the wrong car insurance plan.
Going with the cheapest option you come across
Yes, we understand that under the legal guidelines applicable in Bahrain, all you need is a very basic insurance coverage – a stripped down, third party insurance. However, would this alleviate financial distress for you when there’s major damage to your car or serious injuries to and other passengers if you’re involved in a road accident? Third party insurance only covers the damage your car causes to another person, their vehicle or property. However, when damages hit your car, you’re going to be thrown under the bus with this policy.
The cheapest option could also be a low value-for-money comprehensive plan that you’ve bought in a jiffy without comparing with other available options. This may help you cut expenses up front, but you may just get stuck with inadequate coverage for the entire year. Therefore, make sure you compare the benefits, coverage and costs in a detailed manner before picking a policy.
Going with the most expensive option
And here, we have the other extreme. Expensive is not always better. In other words, shelling out more money may not mandatorily bring you extra benefits. You need to clearly define your car insurance needs with respect to what sort of coverage and features you need. If you don’t drive frequently and your car isn’t under any grave risk, you could opt for a no-frills inexpensive car insurance plan. When picking an insurance policy, make sure you customize the overall policy by adding the specific elements you need and discarding the ones you don’t.
Failing to compare all your options
With a wide variety of insurers and car insurance plans in the market, there is an ocean of deals to choose from. So why not spend a bit of time doing some research to pick out the best deal? Compare policy features, coverage, exclusions and add-ons beforehand. And why pay extra when you can avail a handsome discount? Make sure you search the market for limited-period deals and discounts before settling on the right plan.
For example, here on Souqalmal.com, you can compare multiple car insurance quotes within minutes and review policy benefits all in one place.
Your deductible margin is too low or too high
This deductible or excess is the amount of money you’re required to pay to the insurance company when making a claim. Essentially, it is the percentage or portion of the claimed expenses to be borne by the policyholder.
In general, when you choose a lower deductible percentage, you would have to pay a higher premium. And with a higher deductible, you get to pay a lower premium. Given the option, make sure you choose a deductible that you’re most comfortable with – neither too high, nor too low.
Your vehicle’s value is set too high or too low
Before settling on an insurance plan, you’re required to submit the closest estimation of your vehicle’s value. Getting this question answered wrong would mean ending up with the wrong coverage that is either too high or simply inadequate. The value of your vehicle is also one of the parameters that determine the premium you would be charged.
Buying insurance from the car dealership
When you walk into a dealership to buy a new car, chances are that you could walk out not just with the car, but also with a car insurance plan pitched by the dealership and its insurance partner. However, this seemingly convenient option may not be the best one. It’s always better to take a step back and make a more detailed evaluation of the insurance market and the different deals available rather than going with the first option you’re given.
Looking for the right car insurance policy that fits within your budget, without skimping on the benefits? Head on over to Souqalmal.com’s insurance comparison platform right away.