Auto Insurance: What To Be On The Lookout For

When we are kids, we are introduced to the world of fairy tales. And then as we grow older, we are given marketing. We consider the age-old problem of half truths in the area of auto insurance. Insurance is known as a product where the value only becomes apparent when you claim, this is known as the zero moment of truth. This article will underline auto insurance myths, to prepare you for the day you have to claim.

Auto insurance myths vs. the hard truth

Speeding fines will increase your premiums

In South Africa, speeding fines have no effect on your auto insurance premiums at all and will not be taken into account. If an auto insurer mentions a history of speeding fine, then alarm bells should go off. Although, driver behaviour is starting to play a role in the department of new insurance products, where in future insurance companies may be able to reward you by lowering your premiums for good driver behaviour.

Auto insurance premiums are always higher for new cars

The age of your vehicle doesn’t have any relation to determining auto insurance premiums, the price of your vehicle does. When determining the premiums, factors such as the value of your car, the value and availability of spare parts, and any previous auto insurance claims are taken into account.

Cheaper cars cost less to insure

Generally, yes. Cheaper, older cars attract lower premiums, reason being that they are cheaper to replace, other factors also come into play. For example, road worthiness and unapproved or sporty alterations that raise alarm bells. Age and driver experience also play a role.

Auto insurance premiums drop dramatically when a driver turns 25

The more experienced a driver you are, the lower your premiums will be, there are also other determinants to consider. Past insurance premium payments and other condition of the car also play a role in determining how much your premiums decrease. A relatively new auto insurance company called King Price has brought an exciting new product to the market. King Price car Insurance offers groundbreaking insurance cover, and they have a competitive edge by taking into account your car’s depreciating value. King Price Insurance premiums are reduced on a monthly basis. CLICK HERE to get a free quote.

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