August 14, 2020
Saving money now is more necessary than ever in South Africa. With the combination of junk status on our economy and the Covid-19 lockdown, it has sent many South Africans into a rapid downward spiral when it comes to their finances.
While some working South Africans are either getting pay cuts or retrenchments, saving money on insurance is going to become a huge factor for most households. In doing so, one needs to know what to do to save money in this instance. Let’s have a look at what consumers can do to save money on insurance.
Knowing the kind of cover you need for your vehicle could help you save money by choosing the right type of car insurance cover for your needs. There are 3 general types of car insurance available.
Comprehensive car insurance is compulsory when buying a car on higher purchase (financing your car through a financial institute). This type of cover is usually the best, even when you have paid off your car in full.
Third-Party car insurance is the most affordable car insurance. It will usually only provide cover to the motor vehicle that was involved in the same accident as you.
With this type of vehicle insurance, it will cover any fire damage or theft to your car as well as the damage sustained by the motor vehicle that was involved in the same accident as you.
It is advisable to do your homework when it comes to car insurance. Get as many quotes as possible so that you can compare each one. This will help you choose the right one for you.
Remember, when you are buying a new car and wish to finance it you will have to purchase comprehensive cover, so make sure to get a bunch of quotes from different insurers.
When it comes to picking the right insurer for you, please make sure it covers all the requirements and still keeps to your budget. Make sure to read the fine print before signing for your new insurance policy.
If you already have insurance, contact your insurance company and see if they can reassess your policy for you to save some money. If they can’t meet your requirements, then it may be time to change your insurance company.
Ask your insurance company to clarify all of these factors with you and how it affects your insurance premium.
When shopping around for an insurer or if you already have an insurer, let them work out a premium to excess ratio to suit your budget better. Not everybody can afford an expensive excess.
You could consider not settling for the first insurance quote that comes your way. Please do your homework and remember to read the fine print.
Are you looking for affordable car insurance? Perhaps consider getting a quote from PMD. PMD offers car insurance that is affordable with unique benefits such as fixed premiums* and a reduce to zero excess. * T’s and C’s apply.
Please seek out advice from a certified financial adviser before you buy any car insurance product. This article is for informational purposes only.