June 19, 2021
Imagine this: you started working a few months ago, and realised that you need to get a car. This would be the first time in your life that you are taking out car insurance, and perhaps it seems a bit overwhelming. But, with a little homework and following the below tips for buying car insurance, you can find a great policy with a fair premium.1
It’s all about taking responsibility for your finances. When it comes to cars, large sums of cash are involved in just buying one. A lot of money is also spent on maintaining the car. Unfortunately, accidents do occur, and this is where financial responsibility comes into play. If you choose to drive without cover, you could be facing huge financial issues if you are involved in an accident and it’s your fault.
There is a specific sequence to buying a car. You need first to find the correct car insurance that suits your needs before purchasing a car. If an institution is financing your new car, you won't be able to drive it out of the dealership before insuring it, and more often than not you would need to get comprehensive car insurance before you would be allowed to take the car. This is to safeguard your and the bank’s interests.
With your make and model of car in mind, start shopping online for different quotes from different insurers. Remember to present the same information to each insurer so that you can compare apples with apples. Some websites specialise in getting the best quote for you because they have access to many car insurance companies.
Car insurance for first-time buyers will initially be expensive because it will be based on a high risk. The insurer doesn’t have your driving profile or history, seeing as you may be a new driver or have never held an insurance policy before. As the years go by, and you build up a good profile, your risk becomes lower, resulting in lower premiums.
You can phone insurers such as PMD to find out more about the car insurance policy you require. It all depends on what you can afford. The cheapest car insurance available is third-party car insurance, which covers the third party’s car but not yours. So should you have an accident and it’s your fault, you may lose your car if it is a write-off, but at least the third-party’s car is covered. Damage to the third-party’s car could run into the many thousands of Rands for which you would be held liable if you had no cover. If you can afford it, comprehensive car insurance is the best cover you can get for your car.
Car insurance is anything but simple, and for this reason, this article must only be considered as information. But, if you want to buy car insurance, don’t do it alone, first, obtain professional advice from a certified financial advisor.
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