Choosing The Right Car Insurance Policy
August 28, 2015
Finding a car insurance policy that fits your needs and is gentle on your wallet can at times be like finding the needle in the proverbial haystack.
There are numerous insurance firms, each offering a variety of products. How do you tell which is the best fit for you?
You have invested heavily in your vehicle and it is an important asset.
You therefore need a car insurance policy that will ensure you are adequately covered from any risk of loss or damage.
The ideal is therefore to find a car insurance policy that is within your financial reach while providing you with all the options and benefits you desire.
Choosing the Right Car insurance Policy Doesn’t have to Be Car Smash
Size: You need to look at the size of any potential insurer in terms of its client base.
Insurance works on the pooling of risk; the larger the pool the lower the premiums will be as the risk is spread among many people. For a company to have these numbers it must have been in the market for many years and developed a solid reputation.
Licensing: Besides having a reputation, you should confirm that your preferred car motor insurance provider is fully licensed to operate in South Africa for your own peace of mind. Use a large provider to get your car insurance policy.
Benefits: Before settling on any one car insurance policy you need to know exactly what benefits it offers or the items it covers. Does it only cover you in case of theft? Will it cater for the damage on your car if it is involved in an accident?
Some policies offer extra benefits such as giving you a replacement vehicle to use while yours is repaired or as you wait for a new one. However, the packages that offer additional benefits will likely require higher monthly premiums, which leads to the next point.
Cost: To activate and keep any car insurance policy active you will need to pay premiums every month. The size of the premium will be determined by the amount of risk covered as well as the benefits the policy offers.
Factors such as your experience as a driver, your age and your road history also weigh in when your premiums on your car insurance policy are being calculated.
You should of course only sign up for an insurance product that you can comfortably pay for from your income. You should however try to get the most amount of cover you can afford, striking a balance between cost and quality.
Use comparison sites: There are a number of sites such as Hippo that are in the business of offering South Africans a single place from which to compare the car insurance options offered by the many different firms.
It is important that you only rely on trusted sites for this. These sites will do the comparison for you, based on your individual circumstances as well as the details you provide them, such as your average income etc. and you need to be honest or it could re-bound on you.
After getting your details they will look at the different car insurance products currently in the market and present you with a quote.
There – you’re done!
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All info was correct at time of publishing