The Seven Hidden Charges Embedded in Cheap Car Insurance
January 4, 2017
People have to cut back wherever they can when it comes to finances. In a country like South Africa where many drivers are unlicensed, the roads are deathtraps, and you need insurance. But watch out for those hidden charges in car insurance.
Without insurance, bad things can happen. Shop around for car insurance before you sign on the dotted line. Be aware of all the charges embedded in cheap car insurance so that it doesn’t impact your monthly premium in ways you weren’t expecting.
Hidden Charges in Car Insurance
Many fees raise the cost of cover that motorists aren’t even aware of. Let’s look at seven hidden charges in car insurance in cheap car insurance –
- Non-Specific Coverage Plan – read the fine print to discover what exactly you are safe for. Some non-standard providers don’t offer coverage to anyone under the age of 21. If your child is involved in a fender-bender, you will have to pay out of your pocket.
- Legal expenses – this insurance you get with your car policy covers the cost of losses from accidents that weren’t your fault. Most plans don’t include this cover as standard, which means that you will have to pay extra to have it.
- Courtesy cars – fully comprehensive car insurance usually offers access to a courtesy car while yours in is the garage for repairs. It’s usually standard, but others charge an extra fee for this service. Make sure to check to see whether indeed you qualify for a courtesy car.
- Wages garnished – for inadequate liability coverage – this can be the reality if you caused an accident where the other person has an extended stay in a hospital with long-term rehabilitative medical costs.
- You could be denied coverage – cheap car insurance will cover you but may well not cover a family member who wants to use your car. If someone else is driving your car and causes an accident, you’re not going to get any coverage for the incident.
More Hidden Charges in Car Insurance
- Don’t just assume that with car insurance you get useful perks such as roadside assistance. In any case, roadside assistance sold with insurance is often far more expensive than a stand-alone deal with the same level of cover.
- Don’t make a decision based on your monthly premium only. Cheap isn’t always best. Make sure you know about hidden costs such as additional excesses. It can be for just making a few minor changes to their policy.
Try and Verify what you Read About
Unfortunately, most people aren’t familiar with the insurance industry’s jargon. Nobody honestly wants to read that irritating small print.
Go with an insurance company you can trust – one which comes as recommended. Steer clear of insurers who sell flashy products that hold no weight.
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All info was correct at time of publishing