Looking for great value car insurance? The best insurance will not be the same for everyone. The right car insurance policy must provide the coverage you need at a price that fits your budget.
Here’s a quick look at the various car insurance options:
- Comprehensive car insurance: Choose comprehensive car insurance for extended protection – it covers you for bends and collisions, as well as thefts, vandalism, fires, floods and storms. If the thought of whatever happens to your car keeps you up at night, this might be the policy for you.
- Third-party property: Third-party ownership may be an attractive option. It covers the damage you cause to another person’s vehicle or property, but will not pay for repairs to your car.
- Fire and theft from third parties: This cover has the same benefits as the cover of a third party property, but with additional fire and theft protection for your car if it is stolen or if your car goes up in flames.
Now that you know your policies, here are some tips on how to choose one:
Always go for value over price
As for car insurance, the cheapest policy is not necessarily the best. Since many drivers have been unhappy enough to find out, no policy is a “good deal” unless it has the inclusions and benefits you need when making a claim.
Regardless of the type of policy you follow, make sure you always consider what you are getting for your money.
Everyone has different needs, so make sure you take advantage of driver reductions and other money-saving features in your policy.
- Young drivers. If you are under 25, you can face strict premiums when making a policy, so it is good to review your annual policy.
- Older drivers. Being an older driver may mean that you are eligible for lower premiums. Depending on your age and your driving history, you may benefit from significant discounts when making a new policy. Don’t be afraid to compare and change policies at the time of renewal.
- Multi-car policies. Did you know that multi-vehicle policies can offer great value? This is an excellent option for households with adolescents or adult children still living at home. Consider combining your policies for even greater savings.
Tips for buying car insurance
Examine regularly: Renewal time is the perfect opportunity to review the policy and check whether it is still in line with your lifestyle and budget. Policy options and discounts can change every year, so it’s a good idea to talk to a consultant who can help you find out what you qualify for.
Make sure you update your policy whenever you move into the house or change your parking spot. Otherwise, you may find that the premium has increased or that the coverage of the policy has been affected.
Get the maximum reduction: Do you get the maximum drawdown on your policy? Depending on your age, management record and application history, you may benefit from significant discounts when you take on a new policy.
Some insurers allow a excellent driver rating to move with you if you change insurers or the type of policy, so it’s worth giving us a call or getting a quick quote online.
Combining multiple cars to a single policy: The vast majority of South African households own more than one car, but only a few percentages have more cars insured under the same policy.
If your household has more than one set of wheels – for example, you have adult children still living at home – grouping all cars under one policy can mean big savings.
Grouping different products are not always the best option: Unlike popular belief, the car insurance package with other products, such as home insurance and content, does not always provide the best value. In some cases, you may find that purchasing different policies for different types of coverage not only better suits your individual needs but can also lead to a better deal.
Look for a high value, not a low price: When buying car insurance, it is essential to look at the overall picture. Compare your options to see which ones provide the best inclusions and benefits without exceeding your budget.
Know what rates affect you and control what you can
When you call a car insurance company to get an offer, it is not out of thin air. These companies base their prices on the risk they take on, ensuring you and your car; to do so, they will analyze your claims history, your data, and other information. Your zip code can affect your car insurance rates if you happen to live in an area with high vehicle theft rates and/or car wrecks, the insurance company may quote you a higher premium. Also, the more expensive your car is, the more likely you will pay.
If you have been with the current car insurance company for a long time, you can assume that your agent will make sure you get the best rates. But when it comes to finding the best and most accessible policy, you should not believe that what you currently have is the ultimate ideal plan.
Using the tips above, talk to your current agent about how you can save extra money and then take the time to research other companies, including those that offer discounts for more policies. You may find that by moving to another company, you can integrate your plans, qualify for several other savings, and get a car insurance premium that is ideal for you, your car and your wallet.