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The key factors to consider when choosing car insurance

10 May 2017

When you look to get a new car insurance policy, there are sure to be dozens of options for different policies and providers. How will you know which one to get? With any form of personal insurance, this decision-making process can be overwhelming, but with automotive, it's especially tough. The market is insanely crowded.

What risks do you face when you get behind the wheel, and how can you safeguard yourself against them?

Your decision will probably come down to what specific factors you have in mind. What are the particular risks you face when you get behind the wheel, and how can you safeguard yourself against them?

There's a lot of information out there already about third-party and other types of car insurance coverage, and a lot about deductible levels and premiums, too. Let's bring all three of these topics together and help you get to the bottom of your auto coverage decision.

How much coverage do you need?

Whether you're getting individual or business vehicle insurance, one of the key questions to answer is how many different types of coverage to include in your policy. According to Choice.com, compulsory third party is the most basic of car insurance needs for Australians. This means if you cause damage to another car, your insurance can cover it.

But beyond that, there are other elements you may consider adding to your policy. Do you want third-party property insurance, which can give you extra recourse if you've caused someone else damages? What about coverage for fire, or for theft? It's possible, if you're in a high-risk situation, that you should opt for comprehensive coverage that includes a little of all of the above.

How high should your deductible be?

When people ask, "What do I need in an insurance policy?" the main thing they're usually asking about is the size of their deductible. This is true for both personal and commercial car insurance - the most important thing is how much you'll have to pay out of pocket if you have to incur costs.

If you've got to make a claim, how much will it cost you?If you've got to make a claim, how much will it cost you?

Investopedia noted that deductibles often vary for predictable reasons. Your age, demographic data and history of claims and violations will largely dictate how much you owe. You may want to shop around, though, until you find a deductible that's reasonable for you.

Can you keep your premiums manageable?

The third of the key factors when buying a car insurance policy is the premium you'll have to pay each month. The Australian Securities and Investments Commission advises that there are plenty of ways to save on car insurance premiums. These include driving safely and keeping a spotless record, as well as having a vehicle that's safe and secure.

There are a lot of options out there, but we strive to offer you the best possible coverage at Elders Insurance. Talk to us today about whatever personal or business property insurance needs you might have - we'll be happy to help.

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