Here we will explain everything you need to know about car insurance and provide some information regarding the acquisition of quotes and finding the affordable rates.
Car Insurance Explained
Vehicle insurance (also known as car, motor or auto insurance) is a policy that gives you financial protection if your car, truck or motorcycle undergoes physical damage due
to a traffic collision, causes damage to any other road vehicle or property, bodily injury to a third person or liability that should arise from it. Some insurers also offer financial protection against fire, theft, natural disasters or hi-jacking.
What Can I Cover With It?
Many insurers offer some or most of the protection listed below:
- Security against property damage (caused by the insured driver).
- Physical damage to the insured vehicle.
- Damage or bodily injury caused to third parties or their property.
- Third party, theft or fire cover.
- Renting of a vehicle if yours is damaged.
- The cost of towing your damaged vehicle to garage or repair shop.
Premiums
As with most types of insurance policies, you have a monthly premium that should be paid for you to be covered. This can be affected by the following:
- The kind of plan you have and the protection you want to include.
- Age of the driver – People with more driving experience tend to be a lower risk, where the risk of teenagers with less experience, tends to be higher.
- Gender – Statistics show that males tend to be more aggressive drivers; therefore their premiums may be higher.
- Marital status – Research showed that married people have fewer accidents than single people.
- Driving record – If you have a history of drunk driving or had accidents in the past, this may affect your premium.
- Type of vehicle – Not only does the retail cost affect the premiums, but there might be underwriting restrictions for the performance capability as well. Faster cars, for example, will be a higher risk. On the other hand, cars that get stolen a lot, are also a greater risk.
- The profession of the driver – Certain professions tend to travel more or be predominant either among men or women.
- Distance traveled – Some insurers may use this to determine the monthly cost, especially if you have a pay-as-you-drive policy.
- Credit ratings – Some insurance companies use this to determine the risk of the driver. People that are more financial stable may be more responsible and usually maintain their vehicles better.
In South Africa, a percentage of the money is allocated to the road accident fund to compensate for third parties.
Excess / Deductible
The excess is a fixed contribution (provided in clauses in insurance policy), that must be paid out of the policy holder’s pocket each time car is in for a repair. This is compulsory for the insurer to pay the rest of the expenses. Insurance premiums are lower when the excess amount is higher.
Underwriting
Underwriting is a term used for the investigation process. This is where you are asked a few lifestyle questions to determine whether you are suitable for the policy and what your premiums will be. For vehicle cover, this is usually mandatory to determine whether you are a high or low risk to the insurance company.
How To Find The Best Online Rates in South Africa
The first thing anyone should do when searching for cover is to compare a few different policies. By doing this, you can be sure that you get the best deal while still maintaining the lowest possible monthly rates. Of course, you can contact each company directly and ask them for a quotation, but wouldn’t it be easier if a website like InsurAcar just does it for you at no cost?
Just complete your details in the form we provide on our site, and you will be given the best insurance rates in South Africa.
What to Consider When Choosing A Policy
- Before driving your new motor from the dealer, make sure your motor is insured.
- If you are a driver under the age of 25 and driving a high-performance automobile, you might not get covered by some companies, or your premium may be extremely high.
- Talk to your broker about how you can save on your premium. By decreasing your risk profile, you will be able to save some money.
- If you use your vehicle very often, it will increase your risk profile. Thus, make sure if you drive to work and back, purchase private cover. If you use your car to see clients, buy business cover.
- Make sure the driver of the vehicle mostly is insured.
- Include all additional accessories in your cover that is not factory fitted like Mags, Radios and all other extras
- Ensure you have a copy of the certificate when your company asks you to take your car to an inspection center, .
- You must be knowledge about the terms and conditions of you motor cover.
- You need to be clear whether your automobile might be towed by an authorized or unauthorized tow company.
- In the case of an accident, be sure to take all details from both parties.
- You must know what the value of your vehicle is.
- Consider your vehicle security day and night, for example, do you keep your motor in a secure or closed area?
- By having a tracking system, immobilizer or alarm installed, you can save a lot on your insurance rates.
Tips For Shopping For Car Insurance
The cost of a car insurance policy can vary from one company to another. So, it is best to shop around when you buy a plan because not all companies provide the same coverage. One can go to different insurance agencies and compare the cost and the policies to find the one that suits their needs the best.
However, it can be tough to choose the right insurance agent since there are so many of them out there. One can easily get swayed by the promises that the agents make. This is why it is essential to shop around for the best price and the best coverage. Finding the right agent is critical.
Some of the best companies have affordable rates and excellent coverage, while some of the best companies may have costly rates and offer terrible coverage. It is essential to look at the whole package that they provide since some of the worst companies can be just as good as the best.
A car insurance company that provides excellent customer service is much better than one that does not. Customers want to feel that they are taken care of and that their questions are answered to their satisfaction. While it is tempting to sign up with an agent that appears to be genuine, and who will not talk to you, this does not mean that you should sign up with an agent.
Choosing a car insurance company is very personal, and that means that everyone has a different idea of what makes a good company and what makes a bad one. The two of the most critical factors that a person should consider when buying a policy are the cover and the costs.
The way to get the most affordable car insurance policy is to combine your auto and home insurance. If the auto and home are connected, the cost will go down drastically. So, when shopping for a car insurance company, remember to combine your home and auto policies.
Something else that is important when shopping for a car insurance policy is the type of driver you are. You will be able to save money if you are a safe driver. It is easier to drive carefully when you do not have any traffic tickets or accidents on your record.
This is because accidents will significantly reduce the amount of damage done to your auto insurance policy. Having a clean driving record is another way to save money when shopping for car insurance.