Car Insurance: The Must-Haves Vs. The Nice-to-Haves
We know that car insurance is a grudge purchase, but are you paying for more than you actually need? Here’s what you need to know.
Published: Monday, August 15th 2016
As is many things in life, we only seem to see the value of something until it is gone or in this case, until we are paid out for a claim.
It seems we only see the value of cheap car insurance when we claim, also known as the 'Zero Moment of Truth'.
And heaven have mercy on the car insurance company that doesn’t fulfil its promises and pay the claim. Fortunately, when choosing a policy, here is what you can do to ensure a happy ride from quote all the way through to claim:
Ensure You Go Cheap But Not Too Cheap
The car insurance industry benefits from soft rates, which means that it is highly competitive. Essentially, you can move to a different insurance company after a quick conversation on the phone and some paperwork.
This means insurance companies are willing to cut their premiums in order to keep business. So, while it is wise to shop around for the cheapest car insurance rates, you need to be aware of the trade-offs.
A very cheap policy may be making up the money somewhere else, normally in the form of excess. Make sure you find out what costs you will incur if you put in a claim.
Negotiate The Terms Of The Contract
An insurance contract is exactly that, a contract between yourself and the car insurance company, which means if you want to change and update the contract, you can.
“If you, for instance, decide to remove additional cover from your policy so that it better suits your circumstances or decide to increase your excess to see how much it could lower your monthly premium, you should be able to do so,” says Santam.
CLICK BELOW to compare car insurance quotes across a variety of providers and find the best deal for you!
Cut The Extras Not The Cover
This applies to most types of insurance policies: ensure that your basic cover is a reliable cover. For example, that the insurance company has a reputation for paying out, and then look at all the “nice to haves,” which you can cut if you need to reduce your premiums.
Examples of “nice-to-haves” on car insurance policies include accidental death benefits. Roadside assistance, while essential, does not necessarily have to be tagged straight onto your car insurance policy, and can be taken out separately.
It’s sometimes hard to decide whether you want to go with the fun insurance company that understands your evolving needs or the well-established insurance company that is experienced in claims handling.
At the end of the day, you need to look at various reports on the best and worst insurance companies, check the fine print, compare quotes, and choose the policy that best suits your needs.