Cutting down on expenses by saving on car insurance may seem like a good idea but because life is unpredictable, you're better off with car insurance - to protect yourself against the harm and costs that arise when you are involved in an accident or your vehicle gets stolen. When the unthinkable happens to your vehicle, car insurance offers you the peace of mind that comes with knowing that you are taken care of. Under the same breath, it is important to look for a reputable insurer that will cover you for a vehicle accident, a natural disaster, fire or theft. In the unlucky incident that the accident is your fault and damage is caused to another vehicle, the driver or passengers, or even a pedestrian, your insurance should cover you for that too.
Having car insurance takes the burden of administration when it comes to settling claims, from you and places it on your insurer. Should there be a third-party that is liable for damage on your vehicle, you can call on your insurance to resolve the matter on your behalf.
An insurance plan should typically cover vehicle repairs and replacements, reimbursement for damages to the other party or parties from an accident you cause, car hire while your car is being repaired, and even roadside assistance. When you report a claim to your insurance company, a representative should be available to manage the claims process and assist you with any questions you may have.
There are a number of factors that affect the premium you pay per month and it is important to know these so you can make an informed decision when choosing an insurer. Amongst these are:
The type of car you drive - A luxury car will attract a higher premium, while a lower cost or second-hand car will cost less to insure.
The colour of the vehicle - White and light-coloured vehicles cost less to insure as they are more visible even at night.
The area you live in - Living in South Africa, vehicle theft is a real issue and living in a risk area places your car at risk and therefore increases your monthly premium.
How long you have been a licensed driver - As a young professional, if your driver's licence is less than 5 years old, you are considered an inexperienced driver and at higher risk of getting involved in an accident than a seasoned driver.
Your finances and credit history - Your insurer needs to ascertain your risk profile when taking you on.
Having considered all these factors, when shopping for car insurance, consider your budget but remember, you cannot put a price on peace of mind when the unthinkable happens. A comprehensive insurance plan is first prize, but it's best to make sure the basics of fire, theft, and third-party are covered if you can't afford it under your current circumstances.
