Car insurance comparison: Finding the best quotes in South Africa
The right vehicle insurance can prevent financial downfall in an unplanned mishap. Ensuring your vehicle has the right cover is as important as the cost. Here's how you can ensure that you get the best quotes possible.
No one particularly likes discussing insurance. It's one of those overheads that seems trivial at the best of times, only proving its worth when the unthinkable happens. For many, it's a seemingly unnecessary expenditure that only ever takes money, and doesn't offer any tangible return. That couldn't be further from the truth.
Modern vehicles are complex machines and have become increasingly costly to purchase. Banks are offering longer finance terms to try to make them accessible to more of the population, but the fact remains that a vehicle is not a trivial purchase. Safeguarding yourself from the financial implications of losing a vehicle is as important as maintaining it.
Related: AutoTrader Vehicle Finance Assistance
You remain responsible for the amount owed to the bank if you lose your vehicle, be it through accident, theft, or fire. If your car is paid off, you will undoubtedly know how much your vehicle is worth, and you'd hate to lose all that money.
Ensuring your vehicle is correctly insured will ensure you are compensated adequately in the event of a loss, so that you can replace it with minimal financial implications. Insurance is investing in your financial well-being in the future, as unforeseen events happen.
Types of insurance
Not all insurance is the same, and it's critical to ensure that you have the right coverage for your needs. It's always advisable to select insurance based on the coverage rather than the monthly cost (known as a premium).
Comprehensive Insurance
Comprehensive insurance gives you the most coverage for your vehicle. In the event of theft, fire, or an accident, where it is uneconomical to repair (write-off), your insurance will pay you an amount that will allow you to replace your vehicle with a model of similar age and mileage.
This insurance covers you and the losses of the other party if you are found to be at fault, and let's face it, mistakes happen. This can be any property you don't own or through a financial agreement.
Third Party, Fire, and Theft
A mid-tier solution, this coverage will cover the other vehicle if you're involved in an accident, paying for their damages. It will also pay you out for your vehicle if it is stolen or lost to fire. However, this doesn't cover the repair costs of your own vehicle and won't pay you out if your vehicle is written off.
This coverage could still put you in a financial bind. As the insurance will only cover the other vehicle, you will have to pay out of pocket for your own repairs.
Third Party Only
The most basic insurance. This coverage only covers damages to property owned by others, and doesn't pay out for your repairs if you're involved in an accident. Imagine bumping into a new BMW and having to pay for the damages - that could ruin you for years to come. Third-party insurance will help prevent this.
However, if your vehicle is stolen or destroyed in a fire, you won't be paid out and will lose its full value.
Finding the Best Quotes in South Africa
The quotations you receive for your monthly premiums depend on your risk profile. Insurers will look at factors such as your age/experience, location, claims history, and vehicle to determine how much coverage you need and how much you will pay monthly in premiums. They will also inquire about how the car is stored and where it is parked, both during the day and overnight, to ascertain its security.
Installation of additional anti-theft devices and tracking equipment will help reduce your premiums, and some insurers require that a tracking system be fitted to vehicles insured through them.
Finding the best quote can be done through an insurance aggregator, such as Hippo, which will use your high-level profile to fetch personalised quotations from major firms. Hippo can get quotations from 12 different insurers to help you compare quotations and select the one that best suits you.
Alternatively, working through an insurance broker will allow you to deal with multiple firms. The broker must find you the best policy, based on your requirements, all while keeping value for money in mind. Another benefit of working through a broker is that they will handle all the challenging work for you when making a claim, making it considerably less stressful.
