What to look for and consider, when buying car insurance
January 19, 2019
When you compare car insurance firms you must know what you want upfront.
- First work out what cover you need
- Take the age of your car into account
- Compare basic cover plans
- Straight comparisons can be difficult, make things easier by using a quote website
- Find out what might affect your premiums
How to Compare car Insurance firms and Their offers
It is often difficult to compare one vehicle insurance offer to another because of the levels of cover and added value extras. However, we supply a broad guideline on what you should consider. Doing your own research on the Internet to compare car insurance firms also helps to fill in the gaps.
What is Vehicle Insurance?
This is a basic question but it is something that many people don’t fully understand. It is there to help protect your car as part of a financial plan. You get paid out if something happens to your car.
It is important to ensure that you have the cover that meets your needs. It also pays to do annual reviews of your situation to ensure you are still getting the very best deal possible.
Is it Only for Cars?
Vehicle insurance can be on a car a truck or any type of vehicle that the company insures. For example, they may offer motorcycle, quad bikes or watercraft cover as well.
What to Decide on When making Your choice
Your level of cover is going to depend on what you need. Do you drive the car as part of your job or only privately? How old is your car? Are you obliged to get the car insured because it is financed? How good is your driving record? Is it parked in a secure area at night?
What will Determine the Premiums I must Pay?
When you apply, the company will weigh the risk of them having to pay out. This is influenced by your own personal accident record, how old you are, the car that you have, where you are living, what the chances of the car being stolen are, etc.
Is there a Way to Reduce premiums?
The fact is that, as stated above, insurance companies will weigh your driving record and situation. If you have just started driving, or been involved in frequent accidents, you can expect to pay more.
You can often reduce the cost of your premiums by sticking to a basic cover without extra add-ons or by paying a higher excess.
What is an Excess?
An excess is an amount you are liable for when a claim is made. The idea is to stop people making small claims with their insurers. Let’s say, for example, your excess is R2000. When you want to claim, you will be liable for the first R2000 in the cost of repairs.
If the cost is less than this, you won’t be able to claim. If it is more than this, you’ll pay R2000 and the insurance should pay the rest.
What is the Best cover Option?
That is going to depend on your budget, but Comprehensive insurance provides you with the most cover. It is also the most expensive option.
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All info was correct at time of publishing