Driving to success: The simple, successful way to save on car insurance

Driving to success: The simple, successful way to save on car insurance

Cutting the costs of insurance cover you might not claim for makes sense at face value, but when you park the frustration of having to make payments and realise you are effectively renting a safety net, or car cover (like a cape), it makes for a much clearer – and cheaper –  journey.

Vehicle insurance is a superhero – it acts as a partner on your road trips, stands by your side at home and looks after you when you pop to the shops. Purchasing a vehicle is a big decision and a car is among the costliest assets you can buy.  Once the decision has been made, often with a payment plan in tow, a new car (or even a second-hand vehicle that is new to you) is a wonderful means of transportation, but also a target if not properly protected.

The point of vehicle insurance is to protect against damage, third-party accidents, or if someone else is driving your car (depending on your cover). You get Comprehensive cover for full protection, Third-Party Liability and Fire and Theft cover and can add additional cover for accessories you have added to your vehicle, or car-hire in case of an accident. While value-added products do add to the price tag, they can be so much cheaper in the long run than having to hire your own car or making use of other services that are included or available within policies.  

Car-Sera Sera

It can be a contented life if you believe what will be, will be, but there are safety measures you can put in place, such as car insurance. A costly mistake could be a disaster and can so easily be avoided. Let’s imagine your R200 000 new car as an example, with a R3 000 monthly repayment. To add insurance would be an additional expense but without it, if your car becomes written off or stolen, you will still be liable for the repayments. It doesn’t matter if your car is no longer functional – the financial agreement of ownership isn’t cancelled in the event of a crash, so your insurance needs to cover the balance of your repayments.

Without this, you may end up paying off a car you can no longer drive, which is not only depressing but can also be quite debilitating financially, especially as you will likely need to purchase another vehicle or perhaps pay for public transport. Insurance helps avoid the worst-case scenario, provided you have comprehensive cover in place. You can cover the car for its retail value and against the essential risks. Remember that it is important to specify additions to your vehicle such as roof racks and sound systems.

The highway to hopeless

It is normal to feel frustrated about fuelling the insurance pot, especially if you hardly claim but keep in mind that repetitive claims do not go unnoticed. You also don’t know when you are going to need a sizeable pay-out, so keeping cover consistent builds towards the rainy day that may come… it’s just difficult to know if it will, or when.

Making several claims, even if they are relatively small will draw the attention of your insurer. Clients who only claim when they really need to, or who don’t have to claim often are usually able to maintain premiums or only have small increases added to their policies.

The end of the road starts with you

It pays to save on claims as overclaiming can influence your premiums negatively (i.e. increase them or they could become cancelled altogether). Keep in mind that car insurance could be cancelled but you could still have other assets insured under the same policy. If your car insurance becomes cancelled, it can be difficult to find a new insurer to take you on as a client and then you are back to square one, with no insurance to cover your vehicle.  If you are then in an accident that is your fault, the other driver is likely to go after you for compensation, in your personal capacity. This could become a complete nightmare financially without insurance.

Pick a passenger

Working with an adviser to get your insurance right can make all the difference. Your car insurance fits together with protecting your other assets and the ideal policy is available, if you choose to make the most of it. Keeping cover consistent means maintaining your vehicle, paying the premiums, keeping your tyres in check, driving responsibly, and honouring both the rules of the road, and the rules of your insurance policy.

While it will still cost you to keep cover in place, it will cost you so much more if cover goes away.