Currently, car drivers, in addition to the compulsory auto insurance package, often join other voluntary insurance packages to be able to protect their cars in the most comprehensive way. That’s why there are many cheap auto insurance companies on the market today. However, when deciding to choose, you should be careful because in many cases car owners are not compensated. So, let’s take a look at some notes with Car Magazine!
1. Cheap auto insurance companies – unpredictable pitfalls
Currently, when buying auto insurance, buyers often choose the cheap insurance companies to buy and think the benefits of any insurance company are the same until damage occurs or not covered by insurance.
Cheap car insurance brings economic benefits to car owners in the short term, but when it comes to compensation benefits, many people are surprised and regret “know how to choose high-priced auto insurance from a reputable insurance company”. “It was too late”.
On the market today, there are many cheap auto insurance packages that compete with each other. So it makes it difficult for buyers to know which car insurance package is the best and only when When an insurance event occurs, the new car owners fall back that they are not compensated.
There are quite a lot of people who do not understand well about the regulations and benefits when signing a contract, but they often only hear through the introduction, advertising cheap car insurance with full benefits. So, they choose a great one insurance company without doing thorough research before buying.
There are many cases where people buy cheap auto insurance when their car is flooded, water damaged and damaged, but when they contact the insurance company, they say that their case is not covered by the company. Insurance pays compensation so you need to pay for repairs yourself because you didn’t read the insurance terms carefully.
Because of competition in the market cheap auto insurance companies have omitted a lot of additional terms and compensation terms, so the new price is cheap. Therefore, not cheap car insurance but good because it will not fully protect your car in all cases.
2. Notes when choosing cheap auto insurance companies
2.1. Reputable firms instead of choosing a cheap auto insurance companies.
Here’s what you need to pay attention to first: Choose a large, reputable auto insurance company instead of choosing a cheap auto insurance companies.
You can refer to colleagues who actually bought auto insurance and used insurance services to choose a reputable insurance company. When an incident arises, you will be fully, quickly and transparently compensated by the insurance company.
Buying insurance is to prevent problems, you want good support anytime, anywhere. Therefore, you need to choose a large, reputable insurance company with a nationwide support network, this is the most important thing for you to have peace of mind on long business trips, especially to remote areas, sparsely populated, unknown and without relatives. If you are unfortunate enough to have an accident here, now you need an insurance company that is always by your side, supporting, taking care of and accompanying you better or you need a cheap auto insurance.
2.2. Learn more about the terms of compensation:
Learn carefully about insurance coverage, compensation terms as well as damage compensation levels to be able to avoid unfortunate cases. You must choose wisely the terms of insurance to suit your needs and the actual situation of your car.
When buying auto insurance, you need to pay attention to the following conditions:
- Does your auto insurance claim depreciation for replacement materials?
- Do you have flood insurance?
- Is there insurance to choose a genuine repair facility or can only choose 1 repair facility but not genuine?
- Is there auto parts theft insurance? (Note how the benefits of this provision are?)
- When small losses are compensated?
In the insurance policy of all insurance companies, when there is damage to the insured vehicle, the insurance companies will pay the costs to restore the vehicle to its original condition. These costs are calculated at market prices, not according to the Company’s quotation, and these costs are amortized over the life of the vehicle. In order to be fully compensated, in addition to the main benefit, companies offer some additional benefits, when participating in any additional benefits, they will charge an additional fee for that benefit. Additional benefits are as follows:
a. Compensation without depreciation:
When participating in this additional benefit, when a loss occurs, customers will be replaced with 100% new spare parts without having to calculate vehicle depreciation over time of use.
b. Choose a genuine repair facility:
In case the customer does not participate in this additional benefit, when a loss occurs, the customer will only be paid by the insurance company the costs of repairing the car, the cost of replacing parts at the market price (not Genuine price).
In case the customer does not participate in the additional benefits of choosing a carrier but wants to use the service at the airline, the customer must bear the cost of the difference between the airline price and the market price.
In case the customer participates in the additional benefit of choosing a genuine repair facility, when there is damage to the vehicle, the customer can choose the company as a repair and replacement facility, the insurance companies will accept receive compensation costs at the firm’s price.
c. Flood insurance:
Flooded vehicle insurance is coverage during the vehicle’s operation in flooded areas. When the vehicle is operating in a flooded area, unfortunately, water overflows into the air intake of the engine, causing the car to suddenly stop. In this case, many inexperienced drivers had to start the engine to continue the journey, at this time the outside water was sucked deep into the engine, causing engine damage and bent arm. The cost to fix and repair the car in this case is very high from a few hundred million to billions of dong depending on the car model.
This is a very important benefit, not all insurance companies accept this additional benefit. In case the insurance company accepts this benefit, a high deductible from 10% to 50% is also applied. The higher the deductible, the cheaper the insurance premium, the lower the deductible, the higher the premium (the deductible is the amount that the car owner has to pay to pay for the repair costs).
d. After-sale service:
What are the after-sales services that not everyone knows, this is an important difference in the quotation of insurance companies. After-sales service is a service that insurance companies offer to support customers when participating in traffic unfortunately having an accident, increasing benefits for customers.
So when buying cheap auto insurance, don’t ignore the terms and benefits you enjoy because of the low cost. Choose a reputable firms stead of choosing auto insurance companies to help you feel more secure and protect your assets the best!