Buying a car is an important decision that requires quite a bit of research on the models, financial options, add-ons, etc. Equally important is the decision you will take about car insurance. Investing in the right insurance policy is the best way to ensure the safety and maintenance of your car. With hundreds of car models hitting the road every year, motor insurance policies and their offerings keep changing for every new model.

Picking the right insurance policy is important, both in terms of coverage and cost. To choose the right car insurance policy, you need to first understand the types of policies available in the market. The following are the various types of coverage available:

• Collision coverage: This is the basic type that covers the damage suffered due to the collision of your vehicle.
• Comprehensive coverage: This includes non-collision damage to the car, which is due to environmental damage, theft or vandalism. For cars that are financed through third-party sources, this type of coverage is a must.
• Liability coverage: This type covers the costs to others impacted by the accident caused by you. This is a mandatory insurance in most states.
• Personal injury protection: This policy covers the costs of injury to the driver and passengers affected by the accident.
• Uninsured or underinsured motorist protection: This type of policy is exercised when the other motorist does not have insurance cover.

Once you are aware of the various car insurance policies available in the market, the next step is to choose one that suits your requirements. Here are a few tips that will help you make the right choice:

Are minimum policies beneficial in the long run?
Investing in a minimum policy might save you money for a short time, but will lead to huge expenses in the long run. Minimum coverage policies will mean you need to spend more money before you make a claim. People who have a huge emergency corpus might go in for such policies

Do larger deductible policies mean a lower premium?
More the deductible, lesser will be the premium. For example, a policy with $1000 deductibles will require an out-of-pocket expense of 20% of the costs, while a $250 deductible will require only one-twentieth of the costs from the pocket.

Does combining policies help save more?
Some insurance policy providers provide attractive discounts when you bundle home and auto policies together. Before bundling policies, one should ensure that the policies should have the right amount of coverage.

Consider all the discounts and special deals that come with the policy
Most insurance providers give customers a number of discounts and special deals with the policy, such as free airbag replacement, discount for a full-cash payment, safe driver discount, loyalty discount, automatic-payment discount, etc. Evaluate all these options before making a choice.

Evaluate the track record of the insurance company
Check the insurance company’s complaint history and financial strength before making the choice.

Not having a comprehensive car insurance policy is highly risky as it may lead to huge expenses due to road accidents. It is advisable to take your time and choose the right car insurance policy based on pertinent factors.