It can be a little challenging to accomplish the things that help you live your best life, like planning your monthly budget, creating a healthy eating plan, or getting car insurance quotes that offer you the best value for money.
Just like a healthy eating plan will help your body do its best to keep you thriving and surviving through the highs and lows of life, car insurance is equally essential to help you so that you can keep going.
While you can go to a nutritionist or doctor and get advice on how to eat healthier, it can be trickier to find the best value car insurance. The key is to know how to compare quotes, which we’ll unpack for you in 5 simple steps.
Step 1: What do you want?
Some countries, like Singapore, have a minimum requirement of third party only car insurance in order to legally drive on their roads. South Africa has no such regulations, so it’s up to you to decide how much cover you need.
The best way to work out what you need is to know what’s on offer.
Car insurance options include:
• Third party only: This is the cheapest option, covering the cost of any damage done to another car or property if your car’s in an accident. You’re not covered against damage to your own car or theft.
Recommended for the family skadonk that’s paid off and has a very low value.
• Third party, fire and theft: The second cheapest option covers the cost of fire damage and theft of your car, as well damage to another car or property if your car’s in an accident. You’re not covered against damage to your own car.
Recommended for a slightly older model that’s paid off and has a relatively old value.
• Comprehensive: The is the most expensive option, covering the theft of your car, accidental damage to your car, as well as damage to another car or property if your car’s in an accident.
Recommended for financed cars and cars with a higher value that you want to look after (repairs and/or replacements) without paying out of your own pocket.
Step 2: What can you afford?
This takes some serious eyeballing of your budget. Keep in mind that it’s the amount that you can afford, not the amount that you would like to pay.
While you’re calculating the highest amount that your budget can handle (not that you’ll have to pay the highest necessarily), look for weak spots where you can tighten the financial belt. For instance, do you buy chips and chocolates from the fuel station when you’re filling up? That’s an easy R15 – R20 that you can save each time. You’d be surprised at how these little bits add up.
Step 3: Who should you compare?
Now that you know what you want and what you can afford, it’s time to compare. For this step, you’ll want to make sure that you only look at the top insurance companies in South Africa, who have a good reputation for customer service and paying out claims.
For instance, among others, you can compare car insurance quotes from King Price. They are well known for treating their customers like royalty (proven by the service awards they’ve earned). They also decrease your premiums every month, in line with the depreciating value of your car, if you take out comprehensive car insurance.
Step 4: Ask for an actual quote, not an estimate.
It’s all good and well to get an estimate, but this amount is not usually a true reflection of what your premium will be. Generally, the estimated quote is much lower (although it can also be higher), which can be disappointing when you then provide all the info that your insurer requires and are given a much higher premium.
Rather bite the bullet and go through the more comprehensive process of questions in order for the insurer to create an accurate quote for you.
Step 5: Pick your excess.
Included with every quote is the excess amount that you could pay. An excess is the bit you pay before your insurer foots the rest of the bill. You need to make sure that you’re comfortable with the excess amount. Some insurers, like King Price, give you the option to choose your own excess in order to influence your premium amount.
How does this work? It’s simple. You can select a higher excess which will lower your premium, or a lower excess which will increase your premium. This is a good trick to lower your premiums, but you must be comfortable with your excess amount.
If anything happens and you need to claim, you’ll have to pay this amount first or the repairs won’t be approved.
In addition to these 5 steps, we also have a bonus step and that’s to ask your insurer if they can assist you with a cheaper premium. It’s not guaranteed to work, but there’s no harm in asking the consultant to see what they can do to help you ensure that you are getting car insurance that fits your budget, fits your preferences, and will cover your car against the perils and risks that we face on the road today.
Car Insurance and Road Safety – What do we need to know? https://t.co/qsm4gonqr0 pic.twitter.com/r82VcHM8Vz
— Arrive Alive (@_ArriveAlive) November 21, 2016