You may not be so computer literate, nor may you own a computer, and thus prefer to buy car insurance by telephone. But, you may ask yourself, how safe is that? What about all the information I provide over the phone – is that secure or can it fall into the wrong hands? The following article explains what to look out for.
Buying car insurance is not straightforward, and for this reason we recommend that readers must not consider the following information as advice, but only as general information. We suggest you should consult a certified, financial advisor for professional advice regarding any insurance product.
HOW SAFE IS IT TO BUY CAR INSURANCE BY TELEPHONE?
There are several boxes you need to tick to ensure that your interaction with the insurance company is safe.
TO BE SAFE, DO YOUR HOMEWORK
You need to do some research first, by finding out which are the reputable car insurance companies. A quick online search will reveal a lot about insurance companies. Most big providers have very informative websites which contains a lot of useful information. Phone them to make sure what services they provide.
WHAT BENEFITS DO YOU WANT TO HAVE IN YOUR POLICY?
Now that you have an idea of the range of benefits offered by a group of companies, select those services that suit your situation the best. For instance, some motorists may not need a car hire service, because they happen to have a spare car available.
OBTAIN INSURANCE QUOTES TELEPHONICALLY
Armed with your list of requirements, you can phone a broker who can, on your behalf, obtain several insurance quotes based on your requirements. Alternatively, you can phone a particular insurance company that you have selected. For your own safety, you need to have prepared beforehand all the necessary information the insurance company may require, such as your driving history and car details. Based on this information, most companies draw up your risk profile. The information you supply must be accurate, as you don’t want to risk rejection of a claim later on.
HOW DOES THE LAW PROTECT YOU?
By law, an insurance company has to record each and every telephone conversation.2 Such records are thus available to clarify any situation that may arise. The recording also ensures that the insurance company knows what you requested.
Insurance companies also have to comply with strict rules and the purchase conversation must contain specific information to assist you to make an informed decision.
You will also receive the written contract shortly after the purchase conversation, the document contains all the important information that you need to take note of.
ANOTHER ADVANTAGE OF A TELEPHONIC RECORDING
According to PMD, it’s the responsibility of the insurance company to explain fully the implications of what is in the car insurance contract. 2 Explaining the ‘small print’ is particularly important. All exclusions need to be emphasised so that the client knows all about the danger of a rejected claim. If a claim is rejected at a later stage, a previous recording of an earlier telephonic conversation between customer and agent may show that certain exclusions were either discussed or not.
OBTAIN A REFERENCE NUMBER
Once you have had a telephone conversation with an insurance agent, remember to ask for a reference number.3
IT IS SAFE TO BUY AFFORDABLE CAR INSURANCE WITH PMD BY USING THE TELEPHONE
We have seen how buying car insurance by telephone can be considered safe because everything said on the telephone has to be recorded by law. PMD offers short-term car insurance with a very well thought out, thorough script that complies with all the relevant insurance laws, you will also receive a full policy document with all the information you need shortly after the purchase conversation. Why not pick up the telephone for a quote on affordable car insurance?
Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own and do not reflect the views and opinions of Prime Meridian Direct (Pty) Ltd, FSP41040 (car insurance and life cover products). The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.
Sources:
2 https://prime.co.za/news/car-insurance-buying-online-phone/
3 https://www.thestudentroom.co.uk/showthread.php?t=1579162