WHAT SHOULD YOU KNOW ABOUT CAR INSURANCE IN SA?
Some motorists may argue that car insurance is too expensive; however, accidents do occur, and driving without insurance can have serious financial consequences.
With fuel prices increasing every other day in South Africa, having to pay expensive car insurance on top of the ever-increasing price increase and the state of the SA economy can be daunting.
Insurance Covers conducted research on what motorists in South Africa should know about car insurance.
1. Have you calculated all of the costs?
When it comes to choosing a car insurance policy, many people consider price to be the most important and deciding factor. However, many people overlook the fact that cost is a combination of several factors, including excess structure, non-standard items installed on a vehicle, and, for more savvy insurers, the amount and manner in which a person drives.
2. Lower excess vs. lower premium
These two factors’ costs are directly determined by one another, but which is more important? Everything is dependent on your financial situation.
If you have some money saved up, it may be worth it to choose a lower premium and a higher excess. In the unfortunate event of a traffic accident, you will be able to pay the required fee, even if it is higher than usual.
If your financial situation is less stable, it may be worth paying a little more each month for your premium. If you do need to make a claim at any point, there will still be an excess to pay, but it will be less.
3. Have you read the fine print?
It is now easier than ever to search a large number of quotes in a matter of minutes, thanks to advances in technology. However, that process can still be perplexing because it lacks specific information about what is being offered.
If you are unable to work through the details on your own, a good broker should be able to assist you in making an informed and impartial decision about the cost of the car insurance policy and the benefits that come with it. Having said that, it is still your responsibility as a consumer to ensure that there is no uncertainty surrounding the quote and the level of coverage being offered. Does the policy best meet your needs?
4. Have you done any comparison shopping?
It is very easy to obtain a single estimate, one that appears to offer a great premium with matching benefits, and accept it, believing that there is nothing better on the market. This, however, is an error that should be avoided at all costs. Consider getting at least three quotes from different reputable companies.
5. What other factors influence the cost of car insurance?
Market value, vehicle age, and optional extras are just a few of the factors insurers consider when determining their price. Driver age, vehicle storage and use, secondary drivers, and driver behaviour are all taken into account.
There may not be a plan that checks every box from A to Z, but keeping all of the above points in mind will undoubtedly assist you in finding the one that is best suited to whatever your personal car policy needs are. Whether you’re looking to reinsure your current vehicle or insure a brand new one, make sure you take the time to find the best package and start your year off right.
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