Navigating the world of car insurance
9 October, 2023
Downscale before cancelling
Many consumers opt to cancel their insurance when budgets tighten but this is a very dangerous thing to do. If your vehicle is financed you are in many cases mandated to have insurance. If you decide to cancel your insurance and the vehicle is damaged or stolen, the repair bill will be for your own account, or you could find yourself without a car, which you still need to pay for every month. Rather than cancel your comprehensive insurance, you could opt for lesser cover such as a Fire and Theft policy or third party insurance, which will cost considerably less but will still cover you for certain claims.
Be loyal
While shopping around can save you money, once you have signed up with an insurer it pays to be loyal. Over time your risk profile will be refined which could mean a reduction in premiums. In addition when you do need to claim insurers will treat loyal customers, especially those who don't claim very often, in a more efficient manner.
Be honest with your insurer
It is critically important to be honest with insurers when requesting a quote or adding a vehicle to your policy. They will ask a variety of questions in order to determine risk such as who drives the vehicle most regularly, where you live, where the vehicle is stored during the day and at night and your accident and insurance history. It is also important to specify any additional items or other high value possessions to ensure that you are adequately covered should you suffer a loss. If these questions are not answered truthfully they could rightfully decide not to pay out when you do submit a claim.
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Read your policy carefully
While your insurance policy is there to protect you should an unforeseen scenario happen you will also need to do your part. Make sure that you read your policy schedule carefully and adhere to any provisions contained therein. This could include the fact that the vehicle needs to be kept in a roadworthy condition, that vehicle and driver’s licences need to be valid or that certain additional security measures need to be in place. Remember that unlawful behaviour such as drinking and driving could render your cover null and void.
Get the right cover for your needs
Insurance is a necessity but can be a costly expense. It is important to enlighten your insurer regarding your particular needs. If you drive your vehicle infrequently, due to changing circumstances such as a work from home policy you could qualify for a reduced premium. On the contrary if you use your vehicle for business purposes, your insurer needs to be made aware of that fact.
With the level of drivers on South African roads and the high crime rate nobody can afford to head out onto the road without some form of insurance in place. An insurance policy gives you cover for when unfortunate incidents such as accidents or theft occur. Your monthly insurance premium will be based on your risk profile and that of the items you are insuring. This means that no two persons insurance bills will be the same. In addition if you need to claim, each case will be evaluated on its own merits. It is therefore important to take the following into mind when dealing with your insurance.
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