Right after buying a vehicle, whether new or used, it is common for questions to arise such as what type of auto insurance should I get? What do I need to get my insurance? Or is it really necessary to have insurance? Therefore, we tell you the 10 key aspects that you should consider before purchasing car insurance.
Insurance gives you peace of mind when investing in a vehicle, since it not only protects us, our loved ones, but also our heritage. Almost no person, no matter how lucky, is exempt from danger, accidents, theft or other damage, for this reason protecting our heritage is of vital importance.
And since it is a key decision, you have to be aware of everything that takes to buy auto insurance. That is why today we will know 10 aspects that you need to know before obtaining one.
Analyze how many kilometers you travel in a year
The first aspect may not be as familiar to even the most experienced drivers, but certainly the number of kilometers driven in a year is a key factor in the cost of our vehicle insurance.
This is largely due to the fact that insurance companies consider that the more kilometers traveled, the greater the chances of suffering an accident or damage.
Cheap can be expensive later
The higher the premium, the lower the deductible. That is to say, it is important that the monthly or annual payments that you pay do not affect your pocket, but at the same time, take care not to acquire a policy that is very cheap, since its deductible will be much higher in the event that you end up involved in a crash . This will not benefit your wallet at all.
The same happens in case of acquiring limited coverage, since said policy does not cover the damages suffered by the insured vehicle.
Profits Matter Too
The benefits vary depending on the insurer and the type of insurance for your car, so keep in mind what benefits you will get even if you do not have an accident, such as mechanical assistance, coverage outside of Mexico (especially if you live near the borders ), having access to a spare car, among many others.
Analyze in detail the coverage they offer you (one of the key aspects for car insurance)
This factor is the heart of your auto policy, this is where you decide whether to take or leave insurance, since this point is the one that defines how far the insurer covers you in case of accident or theft.
The coverages are usually divided into three categories: comprehensive, limited and basic. Additionally, we recommend you check that your insurance has at least the following points covered:
- Compensation to third parties for accidents
- Coverage for partial or total theft
- Repair of material damage suffered by the insured car
- Medical expenses to the occupants of the vehicle
- Legal assistance
As with other types of insurance, you should make a checklist and compare what the policy you are about to purchase does and does not cover. I recommend having different options and choosing the one that best suits your needs in order to have the highest cost/benefit margin.
Study the additional coverage of your insurance
Think carefully about what other service you should purchase when taking out your car policy, because as we mentioned before, the coverage and restrictions change based on different factors.
Keep in mind that getting additional coverage will increase the value of the premium, but it will be worth it, after all, who wants to be stuck in the middle of the road without assistance?
In general it is cheap to hire a substitute car, or the theft of auto parts; it is convenient to ask about the additional coverages and contract the ones that give us the most benefits.
Your driving experience
Take into account your age because the amount of your car insurance will also depend on it.
Young adults and teens generally tend to pay more for their policy. This is because some insurers also look at years of experience behind the wheel.
For example, car insurance for a teenager who has just obtained his driving license is not the same as a policy for an adult who has been driving for years.
The price of insurance (another key aspect for auto insurance)
Each insurance entity has certain conditions that allow it to establish the price of auto insurance. Some of the factors that influence the price and that are more common are:
- The brand, sub-brand and version of the vehicle
- The year of the vehicle
- The age and gender of the insured
- The insured's place of residence
- The use of the vehicle (a taxi use is more expensive than a private use)
Watch your deductibles
In auto insurance there are usually deductibles in the coverage of property damage and total theft, normally 5% and 10% respectively.
If it is contracted with higher deductibles, the price will drop, and if it is contracted with smaller deductibles, the cost will be higher.
Some insurers include a deductible in civil liability coverage, which makes the insurance much cheaper, but forces us to pay an additional deductible in the event that we cause damage to a third party. This practice is very common in auto insurance for application vehicles such as Uber or DiDi.
Review and confirm the sum insured
The sum insured, one of the most important factors in all insurance, refers to the maximum amount of money that the insurer agrees to pay you in the event of an accident or theft.
In general, this amount is directly related to the commercial value of the vehicle and the cost of repairs, and is clearly stipulated in your policy, although it never hurts to check.
Compare car insurance prices
Car insurance prices in Mexico vary a lot, so it is important to compare different options before obtaining your car insurance.