Nowadays, you can’t flip between your favourite TV channels or radio stations without landing on an advert about cheap car insurance. Most insurers seem to focus on their low premiums and cost-effective offering. But cheap isn’t always cheerful. Behind that attractively low monthly figure, lies a much greater lump sum called excess. The less you pay every month, the more you’ll fork out in the event of an accident or theft. If you’re thinking about buying a new car, or you’re not 100% happy with your current broker, consider the following before you scour the internet for car insurance quotes. Here’s a scary statistic: The Automobile Association of South Africa recently reported that more than 65% of cars on the road are uninsured. Yikes!
Premium vs. Excess
The amount you pay, once a claim has been paid out by your insurer, is referred to as excess. Remember that even if an accident is not your fault, you might initially be liable to pay excess. Be mindful of this when choosing a broker. Cheap car insurance sounds great – until you’re required to pay a hefty lump sum. Weigh up all the pros and cons when it comes to your premium.
Insurance with benefits
Some insurers offer a bonus if you don’t claim over a set period, while others give you cash back or other value-added services. Consider what’s important to you before signing on the dotted line. See what each potential car insurance broker offers, and how these benefits relate to your lifestyle. You might definitely need comprehensive car hire, if your vehicle is in for repairs. Then make sure that’s included in your policy.
Do your research
Whether it’s by word of mouth, search engine or a comparative site – like Deals on Tap – you should take a look at what’s out there before committing to an insurer. Getting car insurance quotes can be painful, but you’ll be glad you did your research later on. There’s a wealth of information at your fingertips.
Risk and restrictions
Paying a premium doesn’t mean that you’re guaranteed to get paid out when you claim. Read through your car insurance policy to get a thorough understanding of what is, and isn’t included. Your broker might insist that you get a tracking device fitted to the vehicle. Or perhaps there are penalties in place for young drivers. Is the policy restricted to a named driver? These things are important and should be considered.
The next time you see an ad for cheap car insurance, take a moment to consider these factors. While you may feel that it’s easy jumping between brokers, it’s also unnecessary and time consuming. You can find the right car insurance to suit your lifestyle, first time.