A shocking stat in South Africa, according to the Automobile Association, is that between 65% to 70% of the 11.4 million registered vehicles on our roads are uninsured. One of the more prominent arguments is that vehicle insurance is too expensive. However, accidents do occur and there are great financial applications in driving without insurance. Many are weighing up their options to find what works best for them. If you are looking for vehicle insurance keep the below in mind.
1
All The Costs
For most people price is the most important factor. However, there are many factors that go into insurance pricing, including the excess structure, non standard items on a car and also the way one drives. Know yourself and your situation. Weigh out what non standard items you can do without. Some insurers offer money back depending on the way you drive. Do you need car hire should you be without a car for a while? All these factors determine cost as well so do a proper analysis before accepting some insurance features.
2
Lower Premium vs Lower Excess
Which is more important? Lower premiums or lower excess? These costs are directly determined by each other and choosing one or the other depends highly on your financial affordability. If you have substantial savings the opting for a lower premium may be the way to go as you would have money to cover the excess should you be in an accident. However, if your financial situation is not the best it might be better opting for higher monthly premiums so that you won’t have to pay a high excess should you need to.
3
The Fine Print
Technology has made it easy for us to gather numerous quotes in a short space of time. However, it isn’t always clear what exactly we are getting in our policies as most details are not offered. A good broker could help you navigate the myriad of quotations and details you need to know regarding what is best for you. However, at the end of the day it is your choice as to what to accept and you should always ask yourself, “WHAT IS BEST FOR ME?”
4
Shopping Around
The mistake to avoid is only getting one insurance quote and settling on it since it seems to have everything you need. The insurance industry is highly competitive and companies will try to differentiate between their packages to stand out in the market. Get a minimum of three quotes and compare before you make a decision. Shop around and find out what the best is for you.
5
Other Factors
Other factors that can bring down your insurance premiums are market value, age of the vehicle, added extras, driver age, vehicle storage and usage, secondary drivers and driver behaviour. Insurance companies can push down your premiums if you are parked in a secure location day and night, fitting a tracking device and ensuring the right market value is recorded by the insurance company.