How To Choose Car Insurance Companies
July 1, 2018
How to choose car insurance companies can be difficult to accomplish, but if you stick to the criteria listed below the choice may be easier.
First off, it’s important to define your priorities before looking to purchase car insurance. Insuring a Lamborghini is not the same as trying to insure a Datsun bakkie.
If you are restricted by budget and only looking for cheap cover then this will decide what cover and facilities you’ll get – but it might not be what you need.
So what you want is a company that offers affordable premiums, gives you cover according to your needs and is there when you need them.
A Quick Look at How to Choose Car Insurance Companies
Look At Their Track Record
The track records of car insurance companies in South Africa will give you a good indication if they are worth your money. You should look at how long they have been active in the industry.
Look at Their Claims pay-out Ratio
This is really important when you are looking at how to choose car insurance companies. You often find cheap online car insurance but when you look at their pay-out ratio, you may find that they often reject claims for really small reasons. The best car insurance companies are those that have high pay-out ratios.
Study the Excess Costs
Car insurance in South Africa is a necessary evil, as is excess payment. When you look at the car insurance quotes, you will often find the excess payments as part of the quote.
Some companies can offer you the cheapest quotes but you have to pay extremely high excess payments as a result. This is an important consideration when figuring out how to choose car insurance companies.
Study the Rules
Insurance for cars have set rules just like medical aid schemes. It is important that you study these rules and pick a company that you feel comfortable working with. If you feel the rules are too strict look at other car insurance companies.
Look At the Claims Process
Some companies have easy claims processes while others have complicated ones. A claims process should be simple without a lot of frills. Companies with complicated processes are looking for reasons to reject your claims.
Do they Use Specific Service Providers?
Most car insurance companies make use of specific service providers for claims and repairs. If you live in a rural area this can result in nightmare claims, where you may need to travel to have your car restored.
Certain companies are more lenient about service providers because of the travel involved. Pick a company that gives you some lenience where service providers are concerned.
Listen to The Word Out There
An important thing to do when you are choosing a company is to look at the reviews of others not just the testimonies on the company website. Bad ratings and experiences is an indication that a company might not be the best option for you.
Consider the Leaders in the Field
If you are looking for car insurance tailored for women then why not go for First for Women? Or for speed and simplicity try Dial Direct or Virgin Money insurance. And if you want old fashioned stability in your car insurance firm then go for Santam, Mutual and Federal or Outsurance.
Final Word on How to Choose Car insurance companies
The list of car insurance companies in South Africa is quite long. To find the best car insurance companies you need to look at every aspect of the company.
Do not simply pick the cheapest quote it might cost you more in the end.
Car insurance and claims should be a hassle free and convenient thing. Companies that over complicate the process are looking for reasons to take your money and provide as little as possible in return.
If you follow these guidelines, then finding the best company will be easy and it may even save you some money.
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All info was correct at time of publishing