Car insurance policy details are often confusing. We’re here to help you make sense of what you need.

Choosing the best car insurance for you should be easy. Unfortunately,  it is an extremely dense market. So, many different companies are going to try to sell you, what they call, the best car insurance.

Car insurance is easy to get. But, this does not mean you should just settle for any car insurance. We’ve listed a few pitfalls to avoid when choosing car insurance in South Africa.

Avoid these car insurance traps

  1. Choosing the cheapest car insurance

The age old saying rings true: you get what you pay for. While it may be tempting to get the cheapest service on the market, this may be a huge mistake. Paying less now may lead you to having to pay a lot more later.

An example would be getting third party insurance only instead of comprehensive cover for your car. Third party insurance is usually the least expensive cover offered by most insurance companies. Here’s how third party insurance works:

“Third-party insurance is essentially a form of liability insurance purchased by an insured (first party) from an insurer (second party) for protection against the claims of another (third party). The first party is responsible for their damages or losses, regardless of the cause of those damages.” – Investopedia

This means, if you only have third party insurance and you’re responsible for an accident, you will be covered for damages caused to other vehicles but not your own. The cost of fixing or replacing your car can add up to a lot more than simply paying for comprehensive cover every month. Although third party insurance is not the best type of insurance out there, it is definitely better than nothing.

2. Choosing a low excess amount

The excess is the amount of money that you will have to pay when you make a claim against your car insurance. Insurers charge excess to ensure the cost of premiums remains affordable. This also prevents people for claiming for every tiny scratch they get on their car. Usually, the lower your premiums are, the higher your excess will be.

While paying super low premiums is great now, the lower your premiums the higher your excess. This means that if you damage your car, you’ll have to fork out a lot of money all at once. 

3. Not reading the policy document carefully

Knowledge is power. Make sure you know exactly what you’re paying for. This will prevent you from being under-insured and having no idea what you’re paying for. 

For your own benefit, your insurance company should provide you with a clear and easy to read the document. You’re paying for insurance with your hard earned money. You deserve to know exactly what you’re paying for.

4. Not choosing insurance that decreases monthly

The value of your car is always decreasing. So, shouldn’t your car insurance premiums decrease too? Don’t pay more than you should for cover. Find an insurer that offers this amazing benefit now.

5. Not updating your policy

Upgrading your home or getting a new car? Don’t let the thrill of getting any new stuff distract you from the important stuff – like updating your insurance. This will ensure you have cover for all your valuables when you need it.

Don’t think that because you’re a great driver, you won’t need to claim from your insurer… Make sure you do thorough research to ensure you’re getting the best insurance for you.