How to choose the right car insurance in South Africa

According to a Wheels24 article, there were 11.4 million registered vehicles in South Africa, of which approximately two-thirds were not insured. Some motorists may find car insurance too expensive while recognising the need for good car insurance cover, and the severe financial implications in the absence of car insurance. Hopefully, this article addresses the needs of the one-third of motorists who have car insurance and is also speaking to the remaining two-thirds.

Before motorists take the plunge and buy a good car insurance policy, there are some tips to perhaps consider.1

What can you afford? 1

Understandably, most motorists consider the cost of car insurance as the most important criterion for buying a policy. But a cheap policy may cost you dearly in the end. This is because the cost of car insurance cover includes several factors such as the type of vehicle, whether it has an alarm, where it is parked at work and night, what the driver profile is like, and other factors.

Your car needs sufficient protection1

For some people, losing a car means no work. In other words, for them, good car insurance car cover is critical. So you need to sit down and work out which boxes you need to see ticked when it comes to car cover. Do you need, for instance, car hire when your car is with the panel beaters for 2 weeks? Do you require 24/7 roadside assistance and towing service? Eliminating these extra costs from your policy may reduce your premium, but what will it cost you to have your car towed privately?

Do you want a low premium or a low excess? 1

Unfortunately, you cannot have both. However, if you have several thousand rands stashed away somewhere, you can negotiate a large excess amount versus a low premium amount with the insurer. If you don’t have much spare cash, pay high premiums versus a low excess

Do you understand the fine print of your policy? 1

This is an important issue, which many motorists may essentially overlook. It is vital to understand the different situations you may find yourself in and any crucial exclusions to consider. For instance, some insurers won’t cover your car when you drive on dirt roads. If you don’t understand your policy, you need to contact the insurer or broker, who will explain in your terms what you are in for when buying a particular policy.

Obtain several car insurance quotes 1

Try and obtain at least 3 online car insurance quotes from reputable insurers. Each quote must tick the boxes you require, and that is why it is important to do some homework first. How will you know if you have the right quote and policy if you don’t know what you need?

Disclaimer

This article can only supply information because car insurance is a complex matter. For this reason, you need to first seek professional advice from a certified financial advisor before buying a car insurance product.