Buying car insurance online in South Africa

South Africa’s pandemic has created a need for many to buy items online because of the various lockdown levels.

In 2022 South Africa, you can buy almost anything online from the comfort of your home. So then, what about buying car insurance online? Let’s explore this together.

What are some benefits of buying car insurance online?

Gone are the days when we had to drive to a car insurer’s office to collect documents. After perusing them, we would return them, fill in more forms and sign. Today, many South Africans have gone online to buy what they need.²

Read further what are the benefits of purchasing car insurance online.

1. Confirm the credibility of the car insurance company

It is much easier and faster to check the reputation of car insurance companies online. On their websites, you can examine issues such as the claim procedure followed, the claim ratio, and the settlement speed.²

2. Buying online is easier

Nowadays, people don’t have the time or money to visit an insurer in person. They can’t afford to wait for a few days before they meet with a car insurance agent. What is much more convenient is to visit your insurer’s website from the comfort of your home at a time that suits you the best, irrespective of office hours.²

3. Less paperwork

These days, purchasing a car insurance policy from an insurer can be paperless. Everything is done online, from completing forms digitally to receiving scanned documents. The insurer sends the final policy to the customer by email. As a result, car insurers reduce operational costs by minimising paperwork and having fewer staff managing operations. The car insurance company that sells policies online passes these savings to the customer through reduced premiums.²

4. No need for an insurance agent

Previously, an insurance agent would function as the go-between the customer and the insurance company. As a result, the policyholder had to carry the cost of such an agent through higher premiums. Also, instead of relying on an agent to provide the correct information, you, the customer, now have full control of your information as everything is available online.²

5. Fast processes

You must wait several days with a traditional car insurance company before receiving your policy. However, insurers can provide you with a policy within minutes if you purchase it online.²

6. Document security

With traditional car insurance, you may lose your hard copy policy document. But, all car insurance documentation issued by the insurer following an online purchase is readily available as an email attachment in your email on your computer.²

7. Comparing car insurance quotes

The advantage of the online process is that you can quickly obtain quotes from each car insurance company for comparison. Remember to present each insurer with the same driver profile and other details – otherwise, you can’t compare their quotes.²

Buy car insurance online safely

The old-fashioned way of buying car insurance involves physically visiting the car insurer’s offices and examining reams of documents. But, today, you can go online to purchase car insurance from the comfort of your home at a time that suits you the best. Unfortunately, online criminals have devised various ways to trick people unaware of certain pitfalls.¹

While we must always be aware of the many cyber criminals out there, it is important to understand that car insurance can be bought safely online. This article will show you how to buy car insurance online safely.¹

Before you buy car insurance, you need to do the following:

1. Check the insurer’s credentials

Make sure the insurer is of good repute and registered. Take note of any customer feedback on the insurer and note any valid complaints.¹

2. Visit the insurer’s website

When entering an insurance company’s website, it must have a padlock symbol to show you that the website is secure. Always type in the address, and do not go into the insurer’s website via a search engine, to avoid inadvertently using a website created by a criminal.¹

3. Verify the car insurance purchase platform

Before you buy anything, make sure the purchase platform you have located belongs to the insurer. Then, go online and make sure you have all the necessary information. If in doubt, contact the insurer’s help desk.¹

4. What if you are using a car insurer’s app?

You can ensure that the app is authentic by downloading it from the insurer’s secure website link.¹

5. What to do after you purchase car insurance

Confirm that you have received the policy document via email, app, or website. Contact the insurer if you haven’t received the copy after ten minutes. Carefully read the policy document to confirm that everything is correct and that it is the official one from the insurer. If you are suspicious about anything, immediately contact your insurer.¹

So, now you know more about buying car insurance online. But what else could we cover in more detail? It is important to get the best car insurance deal by comparing online quotes, especially during the South African pandemic and ensuing bad economy1. Read further and see how to do that.

Finding the best car insurance premium

What exactly is an online car insurance quote? Such a quote is simply an estimate provided by the insurer of how much your premium will be. Not all insurance is the same. So, it makes sense that the more quotes you can obtain, the greater your chance of finding the best quote.⁴

On what is your online quote based?

Each insurer has its way of factoring in the various attributes of the person requesting the quote⁴. Let’s look at some of these factors, as shown below.

1. What kind of cover do you want?

It makes sense that the more cover you want, the more expensive the car insurance quote will be. That is why comprehensive car insurance generally costs more than third-party car insurance.⁴

2. What car is being insured?

Your car’s year, model, and make all influence the quote. Some luxury car parts are expensive to replace after an accident, raising the quoted amount. Some popular cars in South Africa are at the top of the list regarding the risk of theft and hijacking. All these factors combined provide the insurer with a certain risk level – the higher the risk, the more expensive the quote will be.⁴

3. What kind of a person are you?

Aspects online insurers include in the quote are your gender, age, marital status, and qualifications because insurers have statistics on each type of person’s risk. Some age groups represent more risky drivers than others. For instance, a teenage male driver poses more risk than a married man with 20 years of driving experience.⁴

4. How is your driving?

Your driver profile describes what risk you present to the car insurer. For example, the insurer will want to know how many times you have been caught speeding or had accidents. Are you a careless, aggressive driver instead of a careful and defensive one? However, having no driving experience means such a driver would default to a greater risk category. There would also be a difference in risk between a teenager and a married 40-year-old man with no driving experience. It is best to build up a good driver profile from the start, so you can benefit from cheap quotes and low premiums.⁴

5. Where do you live?

Do you park your car at work in a safe office park, at home at night on secure premises, or in a gated community with strict access control? Is your parked car unprotected at night or behind high walls and electric fences? Naturally, the riskier the parking place of your car, the higher the price of your car insurance quote that you request will be.⁴

It’s not just about price

The pandemic has negatively impacted many South African household budgets, so anything that costs less, such as affordable car insurance, will be most appealing. However, this doesn’t mean you should take the first cheap quote from any car insurer, as you could find a better deal from another reputable company. ³

Preferably, approach a car insurer with a good reputation, and negotiate ways to reduce the premium. Besides comparing quotes from multiple car insurance companies, let’s explore other possible factors that could affect your premium.

Read on further to find out more about buying cheap car insurance online. It is recommended of course, that honest information is always provided to the insurer so that there are no hiccups when one happens to claim.

1. Your driver profile is crucial

Your driver profile with a car insurance company describes your driving history. If you have a bad profile that reveals careless and reckless driving, your risk to the insurer is high. “The greater the risk, the higher the premium” is the rule with insurers. Conversely, driving defensively reduces your risk to the insurer, resulting in lower premiums. ³

2. Increase your excess

The excess you have with a car insurance company is the amount you must pay out of your pocket after submitting a claim. The rule is that the higher the excess, the lower the premium and vice versa. So, if you are confident that you will have sufficient cash available to pay for the higher excess in case of an accident, this could be a way to enjoy lower premiums. Make sure to contact your insurer for more information. ³

3. Has your car insurance scenario changed?

Life tends to be so busy that we fail to notice if our cover is still adequate. You may discover some items should no longer be insured, costing you a higher premium unnecessarily. ³

4. Insuring teenage drivers

Your son has just obtained his driver’s license and wants to use your car. Teenagers pose a significant risk to the insurer as they have little driving experience. As a result, their premiums will be high until they reach a certain age. Even so, negotiate with your insurer online for a reduced premium by placing the teenager under your car insurance policy. ³

Disclaimer

Due to the complexity of car insurance, this article can only be informative. For the same reason, avoid buying car insurance before consulting a certified financial advisor for professional guidance.

Sources:

1. 1. Is it Safe to Buy/Renew Car Insurance Online?
   2. 10 Benefits of Buying Car Insurance Online You Should Know
   3. How to Buy Cheap Car Insurance Online
   4. Car Insurance Quotes: How to Shop and Compare Online