Choosing car insurance can be overwhelming, especially with so many cover options available. Unfortunately, many drivers choose the wrong coverage for their needs, which can cost them money in the long run.
Follow along as we discuss some of the most common car insurance mistakes and how you can avoid them to get the right insurance coverage – for your needs.
How to Avoid Choosing the Wrong Cover
If you’re buying car insurance for the first time, make sure that you understand the different insurance terminology and jargon.
Going for the Cheapest Option
While it might be tempting to go for the cheapest auto insurance available, this can be an expensive mistake. Cheap insurance often means limited coverage and even poor customer service. Therefore, it’s essential to compare policies and ensure you get the cover that’ll protect you in various situations while remaining within your budget.
Not Choosing the Right Benefits
Every driver has different needs when it comes to car insurance. Some might need coverage for a teen driver, while others might benefit from a mileage discount.
Make sure to select a policy that includes all the benefits you need. For example, if you often park your car in high-risk areas, consider adding theft and hijacking coverage to your policy.
Failing to Update Your Policy
Your car insurance needs can change over time. Maybe you’ve paid off your car loan, moved to a different neighbourhood, or started driving less.
Failing to update your policy to reflect these changes can result in either overpaying for coverage you don’t need or being underinsured. Regularly review your policy and make necessary adjustments.
Not Disclosing All Information
When filling out your insurance application, it’s crucial to be honest and provide all the necessary information. Not disclosing details like previous accidents or traffic violations can lead to your claim being denied. Ensure that your insurance agent has all the accurate information to provide the best policy for you.
Not Shopping Around for the Best Deal
Car insurance premiums can vary significantly between providers. It’s a common mistake to stick with the same insurer year after year without comparing rates from other companies. Shopping around and comparing quotes can save you money and help you find a policy that offers better coverage.
Assuming You Have Comprehensive Coverage
Many drivers mistakenly believe that their basic or bare minimum coverage will cover all eventualities. In reality, minimum coverage might not cover the cost of damages in a severe accident or natural disaster. Ensure that your policy includes comprehensive coverage to have peace of mind knowing you’re fully protected.
Ignoring the Fine Print
Before signing up for any car insurance policy, take the time to read and understand the fine print. This includes understanding the terms and conditions, coverage limits, and exclusions. Knowing these details can prevent unpleasant surprises when you need to file a claim. Each car insurance company has a unique take on the fine print, so check them carefully before committing.
Overlooking Customer Service
Good customer service is vital when it comes to car insurance. If you need to file a claim, you want a company that’ll process it quickly and efficiently. Look for insurers with good customer service reviews and a reputation for handling claims promptly.
Not Asking Your Questions
One of the most common mistakes people make when buying car insurance is not asking clarifying questions. A good car insurance company will welcome your questions and provide you with all the answers you need to make an informed decision.
Key Questions to Ask
- Find out if there’s anything you can do to reduce your premiums
- Inquire about discounts such as safe driver, multi-car, or bundled policies
- Ask about adjusting excesses and limits to find the right balance between protection and affordability
- Learn about how to get your claim processed in the future
Get Affordable and Reliable Car Insurance Today
Avoiding these common car insurance mistakes can save you money and ensure you’re adequately protected.
For more information on choosing the right car insurance and to get a quote, visit Prime South Africa’s car insurance page or apply online. You can also read about the different types of car insurance and what they mean.
Disclaimer:
The article aims to provide South African motorists with information on common car insurance mistakes. However, it’s not a complete list and you should always do your own independent research. Always ensure you communicate well and often with your car insurance provider to avoid any disappointments.
If you want complete peace of mind, get a quote for affordable Comprehensive car insurance with Prime South Africa, with fixed premiums*, reducing excess*, and top-tier service. T&Cs apply. Always get professional financial advice from a certified financial advisor to ensure you select the appropriate financial services product.