Owning a car is an investment and just like any other investment, you need to secure it.
This is where insurance companies come in. These companies receive a certain amount of money from you yearly. In exchange, they protect your car in case it gets damaged, stolen, or vandalized. The insurance company will often cover all or most of the cost. The level of insurance coverage depends on the contract or agreement you have with the company. So, it is advisable you find out everything you can about an insurance company, before signing a contract with them.
In this article, we will be comparing two insurance companies: Privilege Car Insurance vs Amax Car Insurance.
But, before we do that, here are some things you should know about car insurance:
What You Should Know About Car Insurance?
Before you get your car insured, there are certain things that you need to know. First is the type of coverage provided by the company and then the rates. Insurance companies provide a wide range of coverage for car owners. The type and range of coverage provided depend on the insurance company. The basic type of coverage provided by most Auto insurance companies can be grouped into this three categories;
- Liability Insurance
- Comprehensive Insurance
- Personal Injury Protection
- Collision Insurance
This insurance covers damage to property and any bodily injury sustained by a third party in an accident of which you are at fault. Note, this type of insurance does not cover you “the driver” and neither does it cover your own vehicle. In most countries, every driver is legally mandated to have auto liability insurance. Liability insurance is divided into two main categories; Property damage liability insurance, and bodily injury liability insurance. In many cases, having liability insurance is needed to access other insurance coverages like comprehensive or collision Insurance.
Comprehensive auto insurance is insurance that pays for damages to a car that is not caused by collision. If your car is at risk of being stolen, rolling off and hitting a wall, getting hit by a projectile or even an animal, etc., then you need comprehensive insurance. Most auto dealerships offer this type of insurance. Comprehensive insurance is not often mandatory and only makes sense if the vehicle was purchased with a loan or is brand new. It may not be financially prudent to use this insurance on an older car, because of its low value.
Personal Injury Protection (PIP)
This is a type of auto insurance that covers the driver and passengers of a vehicle involved in an auto crash. This insurance does not cover damages to the car itself and It is common in states that practice no-fault insurance. This means that in an auto crash, the insurance firm covers the medical expenses, irrespective of who caused the accident. But that’s not all, PIP coverage includes, lost income, child care, and burial expenses resulting from the accident.
The collision insurance covers damages to a vehicle resulting from an accident with either an object or another vehicle. It doesn’t cover health or medical expenses associated with the accident. Also, theft, vandalism, or damages to another vehicle are not covered by this insurance. It is optional if you buy off the vehicle and can only be bought together with liability or comprehensive insurance. However, If you’re financing the car with a loan or leasing it, then it is mandatory you have this insurance.
What You Should Look Out For When Choosing An Auto Insurance Company
While each insurance company has something unique to offer, some things remain the same. These are; rates, discounts, coverage, customer services, and ease of use. Among these, rates and discounts take precedence and we will talk a bit about them here.
This is a certain amount of money paid to the insurance company. Rates are of two types; premium and deductibles. Premium is a yearly amount of money paid to an insurance company based on a contract agreement. In exchange, the company provides insurance coverage for you and the vehicle depending on your agreement. Each insurance policy lasts for a period of 6 to 12 months, after which it can be renewed.
On the other hand, a deductible is a specific amount of money paid to the company before payout for any insurance claims. That is, in the event of a crash, you are required to pay a specific amount of money (deductible) before the insurance company releases the insurance money to cover the damages.
Insurance companies can offer discounts in a bid to appear competitive and drive sales. Though it may seem like a mouth-watering deal, it is advisable to always take a close look. Many of the discounts come with specific conditions that must be met before the discount applies. Always lookout for these conditions before jumping in. Common discounts given by car insurance companies are;
Multi-policy discount – You can qualify for this discount by having more than one different type of insurance policy from the same company. For example, having both your car and house insured by the same company. You can stack up to different insurance policies this way to get more discounts.
Multi-car discount – This discount is offered when you have more than one car insured by the same company.
Car Safety and Anti-theft discount – These are discounts that apply only to specific insurance policies. Car safety discounts are given when you medical or bodily injury liability insurance. While anti-theft discount mostly applies to comprehensive liability coverage. In both cases, you are given a discount for having the necessary safety and anti-theft features in your car.
Driving history discount – You can earn a discount if you have a long history of good driving. These discounts mostly consider specific time periods and the amount discounted depends on the length of time considered.
There are many more discounts that apply to different conditions. Auto insurance discounts can be as low as 4% to as high as 40%.
Privilege Car Insurance Vs Amax Car Insurance:
In this section, we are going to compare two popular car insurance companies. We will take a close look at each one and see how it stacks up against the other. This review will include their coverage, rates, features, and their pros and cons.
Privilege Car Insurance Company
This is a subsidiary of Direct Line Group, a UK-based insurance company. The company provides insurance for both cars and houses.
Privilege insurance provides four types of insurance coverage. These are; third party, fire, and theft, privilege comprehensive and privilege comprehensive plus insurance, and Drivexpert insurance.
Third-party fire and theft
This is a basic insurance cover provided by the company. The holder of this policy has unlimited insurance cover for injuries to a third party (including legal fees), child seat replacement cover, and In-car entertainment cover. However, in-car entertainment is capped at £500.
Standard coverage under this policy package includes everything in the third-party fire and theft and more. A courtesy car is provided while your car is undergoing repairs, you are entitled to up to five years of repairs using an approved mechanic, personal injury coverage of up to £5000, and personal belonging coverage of up to £250, etc.
Privilege Comprehensive plus
The plus comes with upgraded limits on all the available coverages in both comprehensive and third-party theft. It also includes extra insurance when using European roads and motor legal cover of up to £100,000.
This ensures the driver by tracking his/her driving performance. The policyholder must agree to have a black box installed in the insured vehicle. The box relays information via GPS back to the insurer. This package comes with all the benefits of the privilege comprehensive as well as an adjustment in premium rates depending on the driving record of the policyholder. In order words, you get rewarded for good behavior.
- 5-year repair guarantee with an approved mechanic.
- Protection against uninsured drivers.
- Insurance for legal fees of up to £100,000
- Multi-car discounts
- Provision of a courtesy car
- Has limited policy options. The lowest policy has very little benefit thereby making an upgrade compulsory
- Policies are expensive and the users don’t have the flexibility of choosing a specific policy like medical insurance without having to opt for an entire package.
- Few discounts.
Amax Car Insurance
Amax is an insurance company based in Texas, US. The company provides insurance by providing quotes from several insurance companies. This means you have the best possible quotes and insurance coverage to meet your needs. While this seems good, it also means that Amax auto insurance will be a middleman between you and your actual insurance provider. Despite their claims to provide good customer services, not having direct access to your insurer could make claiming your insurance a hassle. Some of the insurance companies that Amax auto insurance works with are; Bluefire Insurance, Foremost Insurance Group, and Commonwealth insurance.
Policies and Coverage
Amax Insurance provides 6 insurance policies to choose from, these are; liability, comprehensive, collision, uninsured, and underinsured motorist insurance coverage as well as medical payment. They also provide additional services such as towing and roadside assistance and for affordability, their rates are said to be as low as $49 per month.
- Discounts for multiple cars,
- Homeowners discount,
- Loyalty discount,
- Marriage discount,
- Good driver discount,
- Discount for defensive driving.
- Affordable insurance policies starting as low as $49.
- Several options to choose from.
- Flexibility to either chooses a specific option like liability insurance or comprehensive insurance.
- The insurance policies are easy to understand.
No direct access to the insurer. This could make claiming insurance a hassle.
No information on the insurer’s limit on each policy.
Privilege and Amax Car Insurance – How They Compare To Each Other
Amax car insurance is simple and easy to understand. Its policy options are clearly spelled out so the user knows exactly what he/she will get. Privilege car insurance is a bit more complex because several insurance options are grouped together. This makes it difficult for the users to be specific about what they want.
By sourcing insurance options from up to 25 insurance companies, Amax provides its users with several options to choose from. Also, the user can be selective with what they want without being forced to go for an entire package which may not be necessary as is the case with the Privilege Car Insurance company.
Ease of making claims
Since it is the sole owner of the insurance policy it sells, It is easier to claim your insurance with Privilege Car Insurance than it is with Amax car insurance company.
Privilege Insurance established in 1994 but started selling car insurance in 2004 while Amax car insurance started operating out of Dallas, Texas in 2002. In terms of relative experience, Privilege Insurance takes the lead here. Despite its car insurance coming 2 years after Amax’s foundation, it still has sufficient expertise and experience in selling home insurance.
By all indications, Amax car insurance is more affordable than privileged car insurance. Amax sources for insurance policies from up to 25 companies. This makes it easy for users to find exactly what they want at a competitive rate.
Car insurance is a necessity today and many people may not know where to begin. In this article, we have provided relevant information that will give you a basic understanding of what car insurance is all about and what you should expect from an insurance company. We have also compared two insurance companies and highlighted their pros and cons. This is helpful for the user to make a choice and also determine which company is the best fit for their needs.