Getting car insurance quotes is easy, but the information you provide to insurance companies when you request quotes are critical. We all want that special deal, and pay less for more cover. However, when it comes to claim time, that’s when the tyre hits the road. Will there be any complications with the claim?
Before buying car insurance, you will need to have all the correct facts. This is why the following text should only be viewed as information. If you are requiring professional advice on any car insurance product, please contact a certified financial advisor.
BUYING CAR INSURANCE PER SE IS EASY
Remember, it’s easy to get any type of car insurance you want. You can provide the insurance companies with incorrect information, and those that risk profile will base their profile and premiums on the information you provide. Then you start paying premiums, and so far so good.
BUT WHAT ABOUT CLAIM TIME?
But, then on that grey Friday morning, out of the blue, a driver came late through a red light and smashed into your car with your younger brother at the wheel. Hurriedly, you contact the insurance company, only to find out that there was an exclusion you had forgotten about. The insurance policy was based on your risk profile as the regular driver but did not cover the car with your younger brother driving.
FIRST THINGS FIRST
We all want to avoid the above-mentioned scenario. Before getting quotes, you need to do careful homework, and draw up a summary of your driving history as well as what kind of protection you require from car cover. This part of getting insured is the most critical, according to The Citizen.2 You need to be as accurate as possible in providing information to the insurer, so that a sound risk profile can be established.
PREPARE FOR YOUR CLAIM RIGHT FROM THE START
What many people don’t realize is that the entire policy and the premiums are based on that one and only risk profile. You should be preparing, right at the start, for a possible claim. Will I be covered for this and for that? It would be interesting to know how many motorists are driving along, thinking they are covered, when, in fact, they are not.
COMPARING APPLES WITH APPLES
When requesting car insurance quotes, make sure you are providing exactly the same information every time. If the company does not request important information, make them aware of it. If you provide different information to different companies, they will draw up different risk profiles.3 How can you then possibly compare premiums in such a situation?
THE BEST QUOTE MAY NOT BE THE BEST CHOICE
Even though you have whittled all the quotes down to the best one, it may not necessarily mean the best choice.2 The insurance company has managed to tick all the right boxes you stipulated, as well as offering you a greatly discounted premium. However, upon closer investigation, you establish that their excesses are very high or they have special exclusions that may limit cover and that you are not prepared to take on that additional risk.
WHAT DO YOU DO ONCE YOU HAVE SELECTED THE ‘BEST CHOICE’ QUOTE?
Even though having a quote from a reputable insurance company doesn’t mean everything is finalised. You still need to diligently check, the actual policy itself for all exclusions and small print. Once you have thoroughly exhausted all investigations, you can relax and sign, knowing you are in safe hands.
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:
3 https://prime.co.za/news/peace-of-mind-with-cheap-car-insurance/