Are you the proud owner of your very own car but unsure of how to go about choosing the right insurance for you? Don’t worry, we’ve got you covered! We are going to share top tips to help you choose the right car insurance.
There are various factors that can determine the insurance quote you are given, and even if your first quote seems really good, it’s highly recommended that you “shop around” to find the best possible premium and excess suited to you and your budget.
When asking the question “how do I choose the right car insurance?” – consider the following:
Type of car insurance
Always take into consideration what you will be covered for. Types of car insurance include Comprehensive Car Insurance, Third-Party car insurance, and Third-party Fire and Theft insurance. What are the differences between each of these types of insurance? Well, the most extensive and popular choice is Comprehensive Car Insurance which covers you for damage caused by accidents and weather and theft & hijacking. Third-Party Car Insurance only covers you for accidental damage you cause to other vehicles and is cheaper than comprehensive insurance. And lastly, Third-Party Fire and Theft car insurance covers you for accidental fires and theft and accidental damage on third-party vehicles caused by you. But Remember that if your vehicle is financed, you must have comprehensive insurance.
All costs involved
First, determine and consider your vehicle market value and how this will affect your premium. Vehicles insured for their retail value get a higher premium. A higher premium means a higher payout. Likewise, a vehicle insured for its trade or market value means a lower premium, but lower payout. Next to consider is the actual premium and excess you are able to pay. You can lower the cost of your premium by opting to pay a higher excess when you make a claim. However, you must be sure you’ll always have that amount available in case of an accident. If you are good with savings and putting money away, this may be the best option for you. If you’d rather pay a higher premium and know that fixed amount has you covered, then this may be the best route for you.
Read the fine print
Don’t be ashamed if you don’t know what everything on the policy means. Ask questions. This factor can make or break your decision. Before signing anything, be 100% certain you know exactly what you are and are not covered for and how to make a claim if you need to. Get all the information in as much detail as possible.
Compare your options
Put simply, you should “shop around.” Compare all the options within your budget and take into consideration everything that makes each package offer different and choose one best suited to you. This decision doesn’t always mean choosing the cheapest option. It’s advisable to pay that little extra amount to make sure you are covered for what you need.
What is your vehicle used for?
One of the first questions you’ll be asked by an insurer is what your vehicle is used for. Do you use it for work? Do you drive more than 10 times per month for business use? Who else uses your vehicle? etc. This factor is important to help make your final decision because if your vehicle is mostly used for business, you’re going to want to make sure you get the best service and have your vehicle back and running smoothly so you make it to work every day.
Choosing the right car insurance should be a decision made according to your individual needs. Compare your options, choose the most comfortable expense limit, always read the fine print and you’ll be driving with peace of mind knowing you are covered.