Written By: Nic Bowen Here are just some of the traps and unread small print that many people fall victim to when applying for insurance: Thinking That Loyalty Pays Most people are under the false assumption that if they stay with their present insurance company that their premiums will drop, or that they will lose their no-claim bonus if they change insurance companies. Most insurance companies tend to give their best quotes to new customers, and some allow you to keep your no-claim bonus when swapping companies. That You Don’t Need A Motor Warranty Many insurance companies will try and persuade their customers out of spending money on a motor warranty, so it appears as though the company is giving that customer a cheaper deal. While an insurance policy covers third-party damage, theft and accident cover, it will not cover any factory faults or wear to your vehicle. This is what you need a motor warranty covers, and most companies offer motor warranties alongside their car insurance policies. Buying Third-Party Only Cover To Save Money Many people only buy the minimum amount of insurance required by the law thinking it will save them money. While it may save you a small amount on a month-to-month basis, you run the risk of losing thousands of Rands in the long term. And with sufficient shopping around you will find that many insurance companies offer comprehensive insurance for around the same price as third-party only policies. Forgetting To Check The Excess An excess is the amount you are required to pay yourself when claiming on your insurance policy. Certain companies offering extremely low monthly insurance payments, but their excesses are higher. Be sure to always check your excess and see which policy works best for you. Assuming That All Policies Are Identical Many people assume that one car insurance policy is as good as the next, and they don’t do any further research into the policy that they are buying. Certain insurance companies offer incentives that may apply to you as an individual, which is why it is always important to be completely aware of what the policy you are buying will provide you.