Having the full enchilada (read: comprehensive car insurance) when it comes to car cover is more important than ever. It’s the kind of cover that’s for all of those little ‘oopsies’ and even larger ‘uh-ohs’. It’s also the most expensive option, which is why people tend to go for the much cheaper third party, fire and theft or the third party-only cover. Or they don’t get cover at all, choosing to live life a little too close to the edge, in our opinion.
If you’re on the fence about which level of car insurance to get, let us lay it out for you. We think comprehensive cover is the way to go. Obviously, if there’s just no money in the pot and you’re opting for 1 of the third party options, then no amount of reason will persuade you because you’re making the best decision you can with the financial resources that you have. And we applaud you, because #SomeCoverIsBetterThanNone
However, if you have enough cash to afford the 5-star comprehensive level of car insurance and are still humming and haahing, then we’ve got the factors that’ll sway you.
It covers incidents that damage your car
Comprehensive car insurance is the only level of cover that’ll pay for the cost of repairs or replacements for your own car. All the other far cheaper options that are available in South Africa do not, we repeat, do not cover damage to your baby. Think about it for a second. Even cheap cars cost a lot to fix and that’s due to the economy and the fact that cars aren’t made like they used to be, meaning that a simple dent in the bumper often requires the part being replaced entirely. You think we’re exaggerating, but honestly… What you think of as fairly minor, cosmetic damage can run into the thousands.
When compared to the R400 or so that you’ll pay monthly for insurance, it’s well worth it because these bills are just far too high to handle on our own. Especially if you want to maintain your car’s value so you can sell it for the best price possible in the future.
Your car is financed
You don’t really have a choice if you’re planning on buying a car that’s going to be financed. Most (if not all) financial institutions, especially banks, will make it part of the contract that you take out comprehensive car insurance when you get your vehicle finance loan. Often what happens is that the dealership chap talking to the banks about your loan will then also get you an insurance quote or 2 (maybe more depending on the consultant and how much time they’re willing to devote to you).
What we suggest is that you get your own quotes, too. First find out who the consultant will get quotes from and then flesh these out by doing maximum 3 of your own. This way, you’ll be able to choose the most affordable premium and excess from the insurance company you feel the most comfortable with.
It really doesn’t cost that much to get so much peace of mind
You shouldn’t have to drive to the other end of the parking lot just to avoid having a ‘car neighbour’ (a car parked next to you who has the potential to bump and scrape your car with their vicious doors and reversing skills) because you can’t afford to fix scrapes. Also, you won’t actually have to break the bank to get your hands on the 5-star deal that’ll pay for said scrapes to be magically vanished.
Trust us, there’s cover out there that’s affordable. Like these guys who offer comprehensive cover at an affordable price and then decrease your premium amount every month. Their premise is that your car’s value depreciates on an ongoing basis and your premium should reflect this, seeing as it takes your car’s value into account when calculating your initial premium. They’re the only insurer to do this so far and worth getting a quote from.
