How to apply for car insurance online
How to apply for car insurance online
By Lawrence Minnie
It goes without saying that if you finance a large purchase you really should be insuring it. In fact, it is actually required by law to have insurance on any vehicle that is subject to a finance agreement. This protects the financier’s investment and saves the insured person should anything go wrong.
But finding and deciding on the best insurance for you can be a mine field, with so many insurance companies out there all vying for your money, how do you know which is best and if you’re getting a good deal?
We did some legwork across a host of South African insurance companies websites and discovered a few interesting things.
- Most insurance companies offer a comprehensive laundry list of insurance options,
- Most insurers will tailor a package just for you,
- The industry is as cut-throat as you can imagine, with all of them vying for your policy,
- Insurance is not as expensive as you think,
- Almost all the insurers work over the phone and there is little to no options to set up a policy on your own, online.
So how does one navigate this minefield, so to speak? Well, with almost every single provider's website, it will require you enter your details and then they call you back.
This process can be a bit long-winded as they will ask you a host of questions. Being armed with the answers goes a long way to getting through the process quickly.
If we are talking about insuring a car exclusively, they will ask you for the year, make, model and kilometers as well as overall condition. They will also ask how often you drive and to where and in some cases where the vehicle is stored. They will ask about tracking devices, immobilisers and alarms fitted and may require you to provide proof of fitment. They will then proceed to a personal profile, they will ask you your age, length of time you’ve had your driving license, accident history and driving offences.
The questions all go towards building a risk profile of the car and the driver which works off of a points system. The lower your risk, the lower your overall insurance premium will be.
For instance, a 21-year-old male student driving a sporty Audi RS3 hot hatch, who has only had his license 2 years, will definitely have a higher risk profile than a 50-year-old female dentist that drives a Renault Kadjar.
The insurers will then give you a coverage figure and the monthly insurance premium and will then try and get you to sign electronically. We advise taking the time to repeat this process with at least three providers to see how they stack up against each other. Once you find the one that offers the best coverage for your profile and has the best (read – lowest) premiums, you can then sign the stack of forms they will email to you and as soon as the first payment goes out of your bank account, you’re covered.
The exercise may take some time but you will get a better understanding of your own risk profile and what you should (and could) be paying to insure your pride and joy.
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