What You Need To Know About Car Insurance

There is no car insurance policy that can satisfy everyone’s needs for the price you’re willing to pay, so getting the right insurance company for your needs is a difficult task when you have no help at hand.

It is not possible to assume that the cheapest insurance quote is the necessarily the best, as it may not cover every aspect that needs to be covered when a claim needs to be made. However, the payment of full cover may end up being more than your cars value!

To choose the best car insurance, you must look for something that offers the best value for your money and tends for your specific needs.

The following you have to consider before picking car insurance:

Best car insurance for your vehicle

Firstly, it makes no sense picking car insurance that exceeds the value of your vehicle. If your car’s worth is less than R13 000, the insurance you’ll have to consider is third party, theft and fire cover. The advantage is that if you claim, the other parties will also be compensated. Living in South Africa, it is also essential to protect your car from theft. It is not worth while to take out full comprehensive cover if your vehicle is worth R9000 or less as the annual payments could end up being worth more than your car.

Drivers and car insurance

Before taking out car insurance you must also take in consideration how many drivers will drive your car. The more drivers you have on your insurance policy, the more costly it is. So if your car has a high value and you are sharing a vehicle, the better option will be comprehensive cover. But if you can avoid to add other drivers who do not use your car frequently you will save more. The advantage of this is that you can take out short term insurance every now and again when another driver is using your car.

Age and car insurance

Unfortunately younger drivers will be penalized severely by car insurance companies for less experience behind the wheel. However, costs can be kept low by taking out third party cover. This is neccesary because when claiming after an accident the other people involved will be compensated. The chance that your first car will not be expensive is very likely, so the big concern is damaging an expensive car during an accident.

If you are an older, more experienced driver driving a more costly car, the best route to go is to compare quotes for comprehensive cover. When in an accident, your car, as well as the other vehicles involved will be repaired. Comprehensive cover also includes the cover of unthinkable things, for example windscreen damage and medical bills in the event of personal injury during an accident.

The advantage is that if you build a clean driving record, and  you haven’t claimed, your insurance premium should decrease drastically. This will allow you to afford a better cover option like fully comprehensive cover.

No claims bonus: best insurance

The more no claims bonus you and the additional drivers have, the more discount you will receive on your current vehicle insurance premium. E.g. if you have a no claim bonus for 5 years, you will get up to 65% discount off your insurance. The insurance companies argue that the fewer claims you have made in the past, the less claims you will make in the future.

Additional Car Insurance Tips

When obtaining car insurance, here are some essential tips. Insurance Policies are priced differently, according to the level of risk each driver poses. Insurance companies group drivers into categories based on the loss incurred by the insurer:

• Marital Status: married drivers are less at risk for insurance premium hikes

• Personal driving record: your car insurance premiums will be affected by your personal driving record, the more points your have from speeding tickets, the more your car insurance premium will be.

• Type of vehicle: value, size, weight, age, and cost of replacement parts all figure into determining the price of your auto insurace policy. Larger, heavier vehicles are considered a lower risk than smaller, lighter ones. Additionally, the more expensive the auto, the more expensive the repair, therefore the higher premium.

• Sex: men statistically pay more in car insurance premiums than women

• Age: drivers who are under 25 are considered more at risk and are subject to car insurance premium hikes.
  

• Use of vehicle: drivers who need to drive to work everyday will probably have greater premiums than those who do not need a auto for work. If your commute is during rush hour traffic, expect to pay more for your car insurance too.