Affordable Car Insurance Cover

Watch out for cheap 'n nasties!

Cheap car insurance cover, as with most other 'cheap' bargains, is to be approached with caution. Car insurance cover is the one type of policy you simply cannot afford to take chances with. it is critical that you get the right level of insurance cover - before you're involved in an accident.

The right level of car insurance cover

Getting the right level of cover from your car insurance policy is critical to ensuring your continued financial well-being. The third-party component of your insurance policy will cover you against damages cause to other vehicles or properties, whether you caused the accident or not, and is compulsory from a legal perspective. The primary motivation for getting car insurance cover, beyond the legal obligation to do so, is to ensure that your car insurance cover policy will pay out in the event that your car is damaged or written off. And in a country where grand theft auto is a grand-scale problem, you also want to ensure that your policy will pay out, should your car get stolen.

Regrettably, that's not all there is to getting sufficient car insurance. Regular vehicle usage is another key concept. Car insurers distinguish between personal or private use and business use. Travelling sales reps or client service executives, for example, may regularly use their personal vehicles for business purposes; to attend meetings, visit prospectives or to service existing clients.

A professional copywriter in the full-time employ of an advertising agency, on the other hand, will generally only use his or her car to get to and from their workplace. The former types of vehicle users need to insure their cars for private and business usage, which will increase their monthly insurance premiums substantially. The average office worker, on the other hand, will generally only need vehicle cover for private usage purposes.

Under-insured: Pennywise but pound stupid

Cutting corners by only signing up for private usage cover when you actually also require additional business usage cover is extremely short-sighted. Should you be involved in an accident during office hours, your car insurer may well refuse to pay out on grounds that you weren't sufficiently covered. Should it surface that you knowingly misinformed your car insurance company about the nature of your vehicle usage, the underwriter would also be well within their rights to terminate you as a client.

Car insurance claims

Honesty is the best policy

When signing up for a new car insurance policy, you will be asked whether another car insurer has ever cancelled your policy or refused to insure you, which will almost certainly lead to your application being turned down.

Compare apples with apples

Affordable car insurance cover is not so much about paying a low monthly premium as it is getting a good deal on the right level of cover. If you're shopping around for car insurance policies, always ensure that you're comparing apples with apples when it comes to the policy's limitations.

Opting for "cheap car insurance cover" may well mean that you're not sufficiently covered, so don't be blinded by promises of low monthly policy premiums.

What is an affordable car insurance cover excess amount?

The answer to this question will differ from one person to the next, yet will invariable require a calculator and a list of your fixed monthly expenses. If your monthly budget will be wrecked by an unforeseen expense of R2000 to R3000, it would be foolish to set your car insurance excess amount that high - car accidents to have a tendency of happening!

Bear in mind that the costs of fixing even a minor fender-bender can run into thousands of rands; although a lower excess may increase your monthly premium payments, it won't hurt nearly as much as unexpectedly having to pay a R5000 excess amount!

Never opt to cut corners on insurance in order to buy a slightly more expensive car; rather buy a slightly cheaper car, but ensure that its adequately insured!

South African car insurance cover companies

Choosing the right one for you

Be sure consult people you trust about their car insurance company's service levels. Are they happy with their present insurer? How readily does this company settle insurance claims?

Bear in mind that any delays in policy payouts tend to result in unforeseen out-of-pocket expenses; you want to be certain that your insurance company will be able to settle your claims swiftly and without any tedious administrative processes!

Once you've considered all these points, you'll be making a far more informed decision when it comes to choosing a car insurance company, and applying for the right level of car insurance cover.

As one of the top car insurance companies in South Africa, Dial Direct's reputation is based on reliability, efficient service and hassle-free payouts. Request a free car insurance e-quote now to qualify for a tidy 5% discount on your monthly policy premiums! Simply submit our online car insurance form to get started; an expert car insurance cover consultant will contact you right away to tailor a car insurance cover policy to suit your insurance needs - at a rate that won't break your budget.

 

Also be sure to check out our car cover advice section for more tips on how to get the most out of your car insurance cover policy.