WHY COMPARE AUTO-INSURANCE?
As much as we love our cars, it is inevitable that they will be damaged at some point and the damage will not only be heavy on the heart but also on the pocket. With increasing frequency of road accidents and vehicle thefts in Pakistan, auto insurance is a no-brainer. But as for any product we buy, it is important to first shop around. Shopping around enables us to understand the current market and provides us the opportunity to select what which suits our requirements the best.
Here are 4 top reasons why comparing auto-insurance plans is a good idea:
- COST SAVINGS:
This is the single biggest advantage of comparing insurance offers. Different insurance companies offer variable rates based on your car model, car value, history of infractions, credit score etc. so you can even save up to 15-20% on your insurance cost. Moreover, insurance rates fluctuate according to the overall risk they are anticipating. For example, too many claims in a year or quarter may force them to raise rates and vice versa. So, a company anticipating low risk might be offering lower interest rates than a high risk one.
Certain discounts and free services such as tracking are provided by insurance companies so comparing plans can help you determine which discounts are offered and how to get the most from your auto-insurance plan.
- OBJECTIVE COMPARISON:
Since websites such as KarloCompare are not affiliated with any insurance companies, they can offer you a fair and objective comparison based on your requirements. Moreover, the process of comparing plans is simpler com as the need for extensive documentation to get quotes at insurance companies is eliminated. It is also a quicker method than taking individual quotes from companies and cheaper than going through a middle-man. Comparing insurance quotes online also
- VEHICLES DEPRECIATE:
As the value for your vehicle decreases, insurance costs also decrease. Therefore, if you got your first insurance when the car was new it is a good idea to compare rates since the depreciation leads to significant savings in insurance costs. If you own a luxury car, the insurance cost can drop as much as 20% after a couple of years.
- TAILORED APPROACH:
Not all insurance companies treat road infractions the same way. A road accident or traffic violation may lead to a very high premium with one insurance plan but not have too much of an effect with another one. Moreover, most infractions are stricken from record after a certain time. It is important to keep updating you auto insurance once that has been done since it will lead to revision in the insurance cost. Insurance companies also offer lower rates or special discounts for married couples and older individuals.
Most importantly, the cover you require will ultimately determine your premium. For example, if you have a family and want personal injury to be covered the premium will be different from an individual who only wants cover for car collision damage.
TIP OF THE DAY: Once you decide on a plan, it is always recommended to review it every year at least if not every 6 months.
In the end, there is no alternative to safe driving!