CAR INSURANCE QUOTES – THE POTENTIAL HIDDEN COSTS THAT YOU NEED TO KNOW ABOUT

You are about to purchase car insurance based on an amazing quote. But have you made sure what the quote actually covers? Let’s find out how to avoid potential hidden costs.

Disclaimer

Car insurance is not a straightforward matter, and therefore this article must be considered only as information. If you wish to buy car insurance, please consult a certified, financial advisor for professional advice.

What is the first step before getting quotes?

First things first – you need to do some homework. Collect information from several car insurance quotes to see what they have to offer.2From that, you can draw up a list of what you need cover for, and what extras suit you the best. Now you can choose a quote for cover you require, and that is the most reasonable.

What can hidden costs mean?

Hidden costs don’t necessarily mean that you are being charged with your premium for something you are not aware of. You may also have to pay for something that you thought was covered by the policy. Had you thoroughly understood the policy, you would not have had to spend your own money at claim time. Instead, you could have, from the outset, made another arrangement with the insurer.3

When all else fails, read the policy

It is absolutely imperative that, upon receiving a quote that suits your pocket, you read the policy, especially the small fine print.2,3 You, as a consumer, have every right to have the policy explained to you by a consultant. Make sure that the quote you obtained contains all the required information you may need. After all, how can you accept a quote if you are not sure what it covers?

Don’t accept a quote just because it’s affordable

It’s a no-brainer, but accepting a quote just because the premium is low can prove to be risky. The greatest issue is to know what you are covered for.2

Shopping around will reveal hidden costs

When you compare at least three quotes, remember that each company packages its policy differently.2  However, when you have a checklist of all your cover requirements, you’ll be all the more prepared for discovering any hidden costs.

Compare apples with apples

When obtaining quotes, be fastidious about providing exactly the same risk profile information and your insurance requirements to each company, so that each quote can be compared. In this way, it will be easier to discover any potential hidden costs.

Be honest when providing your risk profile

Be honest and transparent in providing the insurer all the details of your driving history. You don’t want to be driving all the time, thinking you are insured, when, in fact, future claims could be jeopardised due to your omission of some vital information.

Are you aware of those high excesses?

You may be smiling at your amazing quote, barely believing that you’re being offered so much for such a low premium. But, when it literally comes to crunch time, you discover that your excess 1,2 comes to R5000. This has to be paid out of your own pocket before you can collect your car from the panel beater. Unfortunately, you have no time to save for this event within a few days. If you had been aware of this since you signed the policy, you would have started saving for this eventuality. Alternatively, you could have decreased your excess and increased your premium.

Add safety features to your car

Adding a tracking device 2 to your car, may lower your premium.

Reduce your mileage and park safer

Exchanging your huge mileage going to work and back with working from home, means less risk and a lower premium. Instead of parking in an open yard at night, park in a lock-up garage. The extra safety reduces the risk and therefore the premium.3

Why not purchase PMD’s affordable car insurance?

You can purchase PMD’s affordable car insurance quickly and easily, using PMD’s Online Insurance Purchase Platform. You can do this at any time that suits you. If you are concerned about any hidden costs, there is a call-back facility available. Audio and video materials are also there to assist you.

  1. https://www.everquote.com/blog/car‐insurance/cheap‐car‐insurance‐hidden‐costs/
  2. https://www.wheels24.co.za/News/Guides_and_Lists/5‐things‐to‐consider‐when‐choosing‐carinsurance‐20180124
  3. https://businesstech.co.za/news/motoring/239091/8‐ways‐to‐save‐on‐your‐car‐insurance/