July 11, 2023
Are you tired of navigating through the countless myths about car insurance? Well, you’re not alone. It’s easy to get lost in a sea of misinformation, but it’s essential to separate fact from fiction. Just because you’ve heard something doesn’t make it true, so we’re here to set the record straight.
In this blog, we debunk common car insurance myths and misconceptions so that you can make informed insurance decisions. Follow along as we share the facts and help you navigate the world of car insurance.
Let’s unpack the most common misconceptions and replace them with the truth.
It’s a common misconception that new cars are expensive to insure. However, auto insurance companies consider factors like the car’s safety features, theft prevention measures, and the costs to repair it. Because newer cars often come with advanced safety features that reduce the risk of accidents, they can help decrease auto insurance premiums.
Although the technology in newer cars can cost more to replace and repair, it’s important to consider the overall picture. Repairing older cars can also be costly since finding specific automotive parts for older models can be challenging.
Therefore, whether it’s a new or older car, the cost to insure depends on factors like the expenses to repair it, availability of parts, and other factors, including the driver’s driving record, claims history, and location. But don’t let this myth mislead you, as an expensive car doesn’t automatically mean costly car insurance. Evaluating all aspects and choosing the right insurance coverage for your specific vehicle is essential.
Contrary to the misconception, many car insurances in South Africa typically extend coverage to more than just the main driver, providing cover for additional drivers. Adding other drivers to your policy, such as family or friends, can provide them with the necessary cover when they drive your vehicle.
Make sure that you accurately disclose all drivers to your insurance provider to ensure everyone is properly covered. Read more about sharing your car with others in our Open Driver Policy blog.
So, rest assured that some car insurance policies can often offer coverage for more than just the main driver, allowing flexibility and protection for all authorised people who drive your car.
Even if you don’t use your car often, remember that car insurance is more than just road protection. Your vehicle still risks being stolen, hijacked, or having fire or weather damage, even when parked on your property.
Car insurance provides invaluable peace of mind, knowing that your vehicle is covered in various situations, regardless of whether you’re actively driving on the roads.
Read more about why you should keep your car insurance in our recent blog.
Let’s take a closer look at the three main types of motor insurance coverage options available.
The least expensive is Third Party cover, which pays for damages to third parties involved in an accident. For example, if you collide with another person’s car, this coverage would compensate for their vehicle’s repairs. While it’s the cheapest option, it doesn’t provide comprehensive cover for your own car, meaning you’ll have to bear the costs of repairing your vehicle.
The next is Customised cover. This type of insurance covers damages to third-party property and protects your own car in the event of fire or theft. This option can be more affordable than comprehensive cover. However, if you’re in an accident, you’ll still be responsible for covering the expenses of repairing your car.
And finally, Comprehensive cover encompasses all the scenarios mentioned above, including cover for damage caused by accident or if your car is stolen or hijacked. Comprehensive insurance pays for the repairs, whether it’s an accident or hail causing damage to your windshield. Because this type of cover safeguards against a wider range of risks, it has a higher premium. However, it provides more extensive protection for your car.
Let’s debunk the myth that your age alone automatically results in higher car insurance premiums. While age is one of the factors taken into account when calculating insurance costs, it’s not the only determining factor. Insurance companies evaluate multiple aspects, with driver behaviour risk being the most important.
Driving experience, claims history, vehicle type, credit score, and geographical location are all used to determine the cost of insurance premiums. While younger and inexperienced drivers may initially face higher premiums due to their limited track record, safe driving habits and a clean claims history can help lower insurance costs.
On the other hand, mature drivers with years of experience may benefit from lower premiums, as their driving records might show a lower risk profile. However, it’s important to note that individual situations and driving behaviour significantly determine insurance rates.
Remember, age is just one component in the assessment process, and responsible driving behaviour is vital to getting lower insurance premiums. Maintaining a safe driving record and adhering to traffic regulations can offset any age-related impact on your car insurance costs.
The sentiment that red cars cost more to insure is a common myth that’s as old as time. Insurance premiums are determined based on factors such as the make and model of the vehicle, its age, engine size, driver’s profile, claims history, and other relevant risk factors.
The colour of the car plays no role in assessing the insurance premium. Therefore, buying a red car won’t affect the cost of your car insurance in South Africa.
Now that we’ve debunked these auto insurance myths, are you ready to put your informed decision-making abilities in motion?
Don’t miss out on being backed by the best! Read more about why you’ll love being insured by PMD.
This article provides general information aiming to correct common misconceptions about car insurance. Always read the insurance policy thoroughly and make sure that you understand what it says before making a purchase.
Remember only to buy car insurance through a certified financial services provider. Reach out to PMD today to learn more about getting affordable, comprehensive car insurance with fixed premiums* and a reduce-to-zero excess*. *Terms and conditions apply.
November 7, 2023
November 7, 2023