Things to consider before getting your car insurance
Getting car insurance can be overwhelming. When it comes to choosing a coverage plan, it is preferable to always go with the most complete plan but even in these packages, you need to pay attention to some specific details:
1. How your car is valued
Normally there are two ways of valuing a car, commercial value and fixed value. The commercial value will fluctuate with the market, for example, if you get your insurance policy today and the car value declared in the policy says $10,000, if you have collision 6 months after you got it, the value most likely will be different, and in most cases, it tends to go down.
On the other hand, the fixed value as its name says stays the same for the entire term of the policy, for example, if the car was valued at $10,000 and you have a collision 10 months after, they will respect the original valuation.
Both valuations are good but in terms of long-term benefits, the fixed value is more recommendable.
2. Pay attention to the deductibles
This is the most important thing you should be careful about. Some policies work with “fixed deductibles” that normally go from $500 to $1,500 dollars, if your car value is very high, the fixed deductibles will be your best option. However in most policies you will find the deductible amount in percentages when it comes to the deductible for collision, it should be around 3 and 7%, if it goes higher it will end up being too expensive. For theft of the vehicle, it should be around 5 and 10%, some policies with very low annuities will set the theft deductible between 20 and 30% which is insanely high, so pay attention to these numbers whenever you get an offer.
3. Liability
Even the most basic plan will include liability. It is not recommended to only get liability because you will have no protection for yourself, always try to get a plan that covers collusion, theft, medical expenses, on-the-road assistance, and liability.
Whatever plan you choose it’s important to always look at the insured amount of liability, it should never be lower than 150k dollars (3 Million pesos) because this is the minimum amount accepted in most countries, and in a big accident, it is just enough to cover all the damages to a third party.
Have any questions? Contact us! Don’t wait any longer, protect your vehicle. At AIR Insurance, we are ready to help you at any time and build a custom policy that fits your needs with our “360º Insurance Guidance”. For more information, call +52 55 4444 6043 or send us an email at info@air.com.mx
The information in this article is subject to terms and conditions applicable to the time of writing. If you have any questions about the current applicability of this information, please contact an AIR Insurance Brokers advisor.
