6 Things To Consider When Choosing Car Insurance
According to the Automotive Association of South Africa, 11.4 million vehicles are registered on the South African roads, and 65% to 70% of these cars are not insured. Which can be a little worrying as you could have an accident with one of those uninsured cars and that causes a whole mess of problems!
Some drivers argue that car insurance is too expensive but the real question is can you afford not to have car insurance. At the start of a new year especially, it’s worth getting acquainted with existing insurance policies and even doing some car insurance comparisons to make sure you aren’t paying too much. And to make sure that you’re getting the vehicle insurance cover that you actually need! Get a free quick Car Insurance comparison from MoneyPanda in under 5 minutes:
“People may want to buy a new vehicle, or maybe they’re just looking for something more affordable than their current premium. No matter what, there are a few key issues that should always be taken into account before making the final insurance decision”, says Drew Schnehage, commercial director at the Innovation Group.
Many consumers will be considering options and deciding which insurance policy and provider works best for them. To get off on the right foot when looking for car insurance make sure you consider the following:
1. Can you actually UNDERSTAND the fine print?
This is one of the most important things you should look at, if not the most important. Majority of consumers never look at the policy wording and that’s what many insurance providers bank on.
Thanks to the technology of searching quotes in just a few minutes it’s now easier than ever to get access to competitive car insurance quotes. This being said consumers struggle to understand what is actually in their policy and the wording. If you don’t have access to a broker things can be complicated. This is why we suggest that you ask the provider to send you the policy document before you sign on the dotted line. Read through the document, make notes of things you don’t understand and get the agent to answer your questions. It actually is up to you, the consumer, to make sure that there is no doubt about the offer and the level of protection offered.
2. Considering all the COSTS?
For many, price is the most important and decisive factor when choosing car insurance. However, consumers forget that the cost is a combination of several factors, including; ; excess, additional non-standard items fitted onto a vehicle and even the amount and way the policy holder drives. Always ask you your insurance provider to break down the costs for you and ALWAYS ask “is there a way I can reduce my premium”. This way they can give you helpful tips such as, if you park your car in an underground parking not just in the day but at night too your premium can be reduced drasctically.
3. Lower excess OR Lower premium
It all depends on your financial situation. If you have a certain sum of money saved up, it may be worth opting for a lower premium and higher excess. In the unfortunate event of an incident, you will then be able to pay the higher excess. On the other hand if not, it’s worth paying a higher premium monthly so that you can actually use your insurance if something happens. There is really no point in a high excess policy if you don’t have access to that kind of money on a rainy day.
4. Did you SHOP around?
It’s very easy to get one car insurance estimate that offers a seemingly great bonus with good benefits, thinking that there is nothing better on the market. However, this is a mistake which should and can be avoided. It is worth considering a minimum of at least three offers, taking into account benefits and premium. With MoneyPanda you can compare 9 quotes at a time as well as get their provider rating that other consumers have given them:
5. What OTHER factors determine the price of car insurance?
- The market value,
- Age of the vehicle,
- Additional accessories are just a few factors that insurers take into account when determining the price.
This also applies to the driver’s age, storage and use of the vehicle, secondary drivers and the driver behavior.
“Parking in secure locations (day and night), adjusting the tracking device to monitor the driver’s behavior and whereabouts, making sure that the correct (depreciated) market value of the vehicle is registered by the insurance company and more, may lower the price of your bonus. ” Drew Schnehage.
6. How do I know the providers live up to their word?
There is still a lack of knowledge when it comes to customer service and that’s why MoneyPanda doesn’t want you to just compare providers’ prices but to also read our consumer reviews about those providers. These are other consumers’ experiences. We urge you to please leave your advice for others and to use the information your fellow South Africans have left for you too.
There may not be a plan that ticks all boxes from A to Z, but keeping in mind all of the above car insurance tips will definitely help you find the one that best suits your personal car insurance policy needs. Regardless of whether you are looking for reinsurance of an existing vehicle or insuring a new car; make sure you take the time to find the perfect package.
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