Thinking of taking your new car out for a spin? Before you head out, make sure you have the essential documents, such as your driver’s license, registration and insurance card. Don’t forget about the most crucial thing: a car protection plan.
Getting a protection plan is the first thing you should do when you get a new car. But don’t just buy the first policy you can find. Determining the ideal protection plan takes a lot of thought, and you’ll need to know what to look for.
Here is a guide to the essential features of a good car protection plan.
Why Do You Need a Protection Plan for Your Car?
Buying a car protection plan is not just mandatory paperwork. If you sink money into a protection plan without putting much thought into the coverage or the premium amount, you are at risk of a greater financial loss.
The purpose of a car protection plan is to cover your financial loss if your car breaks down. A good protection plan should cover the components that often break down first.
Important things and terms to know before you invest in a car protection plan
Before putting your money into a protection plan, you must educate yourself about your protection plan needs.
- Types of car protection plan
There are two types of car protection plans, which differ in terms of covering third-party damage:
- Comprehensive car protection plan
- Liability, or third-party, car protection plan
- Coverage for Riders:
You’ll need to ensure the safety and comfort of the occupants in your car, in case you meet an unfortunate event on the roads. It can be towing assistance, winching assistance, fuel delivery, battery jump-start, lock-out assistance and other emergency services during breakdown.
- Plan Terms:
When you’re buying a car protection plan, you need to learn about all the benefits a policy offers. Be very careful while checking the terms of the benefits provided like flexible payment terms. You should be more focused on what the plan covers and understand the terms and conditions clubbed with it.
- Critical Coverage:
It’s important that an auto protection plan looks for the entire breakdown mechanism. This is determined by considering roadside assistance covered in the plan. It typically includes towing assistance, fuel and fluid delivery, wincing assistance, battery jumpstart, emergency money, expert advice, etc.
- Hybrid Car Assistance:
A protection plan for your car should ensure that it offers coverage for hybrid models as well. This will help to replace or repair the hybrid components like electric transmission, inverter, generator, electronic motor display, etc.
- Car Breakdown Coverage:
Whenever you’re on the road, you risk getting into a car breakdown. Once you reach the mileage or cross a year, your vehicle becomes susceptible to breakdown or mechanical failure that impedes further operation. So you have to include yourself in the coverage plan. Make sure that the plan you choose covers all sorts of breakdown; otherwise, you bear all the cost, and that can be expensive.
- Claims Procedure:
After a breakdown, the claiming procedure of money with a car protection plan needs to be quick and simple. But some companies fail to disburse the claim payment even after the car breakdown. Choose an auto protection plan from a company that has a reputation for paying claims soon after they are submitted.
Tips for Choosing the Perfect Protection Plan
- Determine your needs
You should only start looking into different protection plans after you have sorted out your needs. This way, you’ll be able to access plants that fit your requirements. Paying premiums can leave a big hole in your pocket, so comparing premium amounts may influence your policy choice.
It’s better, however, to focus on the amount of coverage rather than the premiums you paid for it.
- Compare protection plans
Comparing different plans is the right way to find a protection plan that fits your needs. You can scroll the internet for the data that show what you’d get from each protection plan company. Comparing various breakdown products can ensure that you get the best protection plan for your car at a competitive price.
- Look for plans that offer a more comprehensive network of garages
All car protection plan providers have their own network of garages and repair shops. If your car breaks down or a component needs replacement, the process should be swift. Therefore, ensure that you select a provider that gives you the facility of cashless claims at such spots. Try to find a car protection plan that allows you to choose garages and repair shops that are easily accessible to you.
- Check claims statistics
A little research on claim statistics will go a long way. Explore the internet to find out a company’s claims ratio. You can also search for feedback from people who have already invested in the protection plan you’re considering.
- Zero depreciation plan
Despite a higher premium rate, it’s always safer and more beneficial to choose a plan that offers zero depreciation coverage. With zero depreciation, you claim the actual reimbursement for the repairs despite any age or mileage of your car.
Safety first!
Protect your car and yourself with an appropriate car protection plan. Now that you’re more informed about car protection plans that help you deal with unpleasant breakdowns, you can go ahead and do your research on different companies policies. Indeed, it’ll offer a wiser investment route.
