Insurance company: Things you should know when buying car insurance

General insurance company provides car insurance as protection for your car. Due to its value, car owners should buy insurance for their cars in case of unexpected risks. However, there are many things you should consider before buying car insurance.

 Insurance company: Things you should know when buying car insurance

What you get when buying car insurance?

Coverage and deduction are important parts in an insurance contract. Insurance company usually lists details in which cases you are insured and in which you are not. That’s why you should know what deduction is to avoid disadvantages later. Following are terms that you should be concerned about in contract.

- Stealing properties insurance (car owners will be reimbursed up to 70% of the value of stolen properties but insurance company can limit times and the number of properties that are stolen)

- Water hammer insurance

- Optional garage

- Property replacement

Water hammer insurance is the most important in the above terms. You only pay hundred thousands dong for this package but you may spend one third the value of the car if water hammer happens to your car. If you are new and inexperienced, you should notice the amount of money spent on insurance.

Deduction in insurance

Deduction may be a new term to those who buy insurance for the first time. Before signing contract, you should understand deeply and consider carefully about this amount of fee. Deduction is the amount of money that you will not be reimbursed if your loss is within. This is the way to share the loss between insurance company and car owners. Giving explanation for deduction, insurance company says that they have to spend time, human resource to solve the problem every time they receive insurance request from customers. Deduction fee will help reduce wasting time and money when both parties have to solve low priced reimbursement situations.