What to understand before buying car insurance over the phone in 2020 in South Africa

In South Africa, It is not difficult to get a car insurance quote over the phone, but you need to have a full understanding when it comes to the process and what is involved in buying your car insurance. You should not agree or sign for anything if you do not have a good understanding of everything. If you are unsure about something, speak to a certified financial advisor.

Let’s look at how to get a better understanding before you sign on that dotted line.

Disclaimer

Please consult with a certified financial advisor before you buy car insurance. This article caters for information-related purposes only.

What kind of car insurance cover are you seeking? 1

It is important to understand the different kinds of cover you can get from car insurance companies in South Africa. Do not settle with one insurance company, shop around and get the best protection for yourself and at the best possible rate.

Make a list of what you want covered1

When you have looked at various car insurance options from different companies, compare the pros and cons and see which one ticks all the right boxes. Make sure that when you have made the final decision that you have third party cover if you were to crash into another vehicle and also check what your excess is. You can calculate an excess to suit your financial means with the insurance company. If you were to get stuck on the side of the road will your insurance policy include roadside assistance as well?

What are car insurance quotes based on now in South Africa? 1

Insurance quotes are often based on the type of driver you are, amongst other factors. You are considered a risk when having a bad track record of many accidents and dangerous driving. If this is the case, your risk profile may not look good to an insurance company. Your premium will most likely be based on these factors, or you might be more of a risk than they anticipated and might not insure you at all.

It would be best before you agree to any quote to give a full breakdown of your driving history. This will help you, in the long run, to not be compromised at a later stage.

Exclusions and limitations1

When you have an insurance policy, it is essential to understand any policy exclusions or limitations. Always gain a better understanding of what your insurance company expects from you and what they exclude or limit on your vehicle. For example, your policy may not cover damage to your car from a dirt road.

What are some exclusion examples? 1

What are policy limitations? 1

Policy limitations may include a driver’s age and limiting the age of a regular driver. In most insurance policies, drivers under the age of 25 will have to pay a higher premium as they are regarded as higher risk drivers. There might be a limitation on who is allowed to drive your car, which means if an invalid driver drives your car and gets into an accident, your insurance will not pay out.

In conclusion , make sure you have a good understanding of your car insurance quote. Read the fine print before agreeing to anything. Also, reputable car insurance companies maintain a high standard of service, which is legally required, when speaking to consumers over the phone or via any other means of interaction. It is a highly regulated industry with a Short-Term Insurance Ombudsman to assist you should you feel that you can’t reconcile with your current insurance company.

Sources:

1. 1. What you need to understand before agreeing to a car insurance quote over the phone