Updated 16/08/2023
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
Shop around when you’re looking for car insurance to get the best deal that suits your needs. With so many agents out there, it can be tough to decide which one is right for you, and promises made by agents may not always be reliable. Consider both the cost of a policy and what coverage it includes when selecting an agent. Some companies offer great deals but others have costly rates with terrible coverage – look at the whole package before making your decision. Additionally, customer service should also be taken into consideration as customers want to feel heard and supported throughout the process. Be sure to combine auto and home insurance if possible in order to save on costs, plus drive safely with no traffic tickets or accidents on record – this will reduce damage done to your policy.