Five Car Insurance Need-To-Knows

Car insurance can be so complicated, but it doesn’t need to be! Read these five tips on how to make the most of your vehicle insurance.

Five Car Insurance Need-To-Knows

Many people feel that vehicle insurance is a grudge purchase, and understandably so. If you`ve been paying insurance for years but one unfortunate day you need to claim, it can be a daunting practice. You realise that there are limitations all over those policy documents that were so long and complicated that you simply didn`t want to read them.

The trick with insurance is to know what you are and aren`t covered for, but this is lighter said than done. That`s why we`re going to break down some of the most significant things to know about your cover so that you get the most from it when you`re looking for car insurance quotes.

What is covered – the driver or the car?

When you take out vehicle insurance, it`s usually for yourself, right? Have you thought about what happens if someone else has an accident while driving your car? Do you know if they would claim under their own insurance or yours?

You and your vehicle are covered under your policy, which means that if somebody else has an accident while driving your car, you are still responsible, so you`ll need to submit a claim to your own insurance company.

It`s worth noting, tho’, that you might have to pay extra excesses if someone other than you has the accident, especially if the person is not the regular driver, or your spouse. Even their age makes a difference, so be sensible about who you permit to use your wheels!

What do you use your vehicle for?

Whether you determine to go with comprehensive car insurance , third-party, fire and theft, or third-party only, you need to let your insurer know what you`ll be doing with the vehicle. Are you using it for your business? Are you going only from home to work and back? If so, is your place of work in one location, or does it vary? This has a drastic effect on how insurance companies insure you and if you`re not totally fair about this, there`s a chance your claim won`t be paid. When you take out car cover with a reputable company like Budget Insurance, for example, you can choose various categories of usage, such as:

Is your excess always the same?

Do you know that you might not have one vapid excess rate? Your insurance company likely has a standard excess that you`ll need to pay, and some extra excesses if certain conditions are met. Some of these include:

• Time of day: extra excess might be applicable if you have an accident late at night or in the early hours of the morning.

• Date: if you make a claim within the very first six months to a year within taking out the policy, you may be liable for a higher excess.

• Location: if you have an accident or your car is stolen outside of South Africa, you`ll likely pay more.

Does your vehicle affect your premium?

Had your eye on a fancy car for a while? Have you been saving for a deposit and doing your affordability calculations? That`s excellent! However, have you also factored in the insurance costs? Vehicles that are worth more, as well as those that are higher targets for theft, are going to increase your insurance premiums because they are a higher risk.

What should you tell your insurer?

It`s significant to notify your insurer as soon as possible whenever you have a major life switch. Here are some examples that will certainly affect your insurance (and also your claims if you don`t keep your insurer in the loop):

• Marriage: You need to let your insurer know when you get married, and it`s in your best interests to do so, because your monthly premiums will likely go down! Why? Insurance companies typically see married people as a lower risk.
• Job switch: If you recently got a fresh job, congratulations! Let your insurance company know about it so that they can update the address where your car is parked for most of the day.
• Fresh home: There`s so much to do and organise when you`re moving, and calling your insurer to let them know might not be on the top of your to-do list. But if something happens to your vehicle at your fresh home and you haven`t updated your details, your claim may be rejected.

These details will help you make the most of your insurance, but the best way to understand everything about your cover is to read your policy documents as soon as you get them, and ask your insurer if you`re uncertain about anything.

Five Car Insurance Need-To-Knows, Auto Trader South Africa

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