So you’re finally getting the keys to your first car. Congratulations! But before you start revving that engine up, there’s one last ‘hurdle’ to overcome—understanding how to choose the best car insurance for yourself. Read on to find out how to handle car insurance like a seasoned pro.
Selecting an insurance provider:
Take time to research which insurance company you should purchase your car insurance from. While price is usually the biggest consideration, look out for other intangible qualities such as professionalism and 24-hour assistance. For example, raising a few questions with the helpdesk and assessing their responses is a good way to find out how dependable they will be in sticky situations.
Choosing an insurance provider solely based on lower premiums could ultimately backfire on you. Lower premiums almost always come with higher excess, which is the amount you have to fork out first before your insurance cover kicks in. In some cases, the coverage may even be inadequate and come with terms and conditions that exclude several common scenarios—so make sure that you read through the entire policy closely.
Choosing the right coverage:
If you know that your car will be shared frequently with other drivers such as family members, consider adding them to your car insurance policy. Most of the car insurance policies in Hong Kong provide two named drivers for free. But even if it is not free of charge, it would still be a wise decision to add them to your policy just so you can ensure that your car is under coverage at all times.
In order to enjoy lower premiums, some parents purchase the cars and insurance on their children’s behalf and list them as additional drivers instead of the main drivers. This is a strategy known as ‘fronting’ and is considered fraud. If discovered, your entire coverage will be invalidated—so don’t go risking huge losses for small savings.
Knowing the right car insurance policy for your lifestyle can lead to substantial cost savings and fewer complications down the road.
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