When it comes to deciding how much car insurance coverage you need, there are a few important questions that you need to ask yourself regarding your financial situation, the type of driver you are, and what you can afford. Here are some things to consider before making the decision.
Your financial situation:
Car insurance coverage limits have a lot to do with what you can and cannot afford. You need to think about how much you can comfortably afford when setting coverage limits, and this means looking at your financial assets. If you own a home and have many assets to your name, it may be a good idea to increase your liability cover limits to above the legal minimums. This is because if you cause an accident and your liability limits are too low to cover the expenses, the other party might go after your assets in court. Higher limits can help you protect your assets.
Considering your health insurance:
Before deciding on your car insurance coverage, you should take a look at your health insurance plan specifics to see whether or not you need to add medical payments coverage to your car insurance policy. If your medical aid already pays for accident-related medical expenses, then this won’t be necessary.
The type of driver you are:
Car insurance coverage also depends on the type of driver you are, meaning your driving record, habits and the type of car you drive. For example, if you’re a cautious driver with a very good driving record, it would be wise to opt for a higher deductible and a lower rate. However, if you tend to find yourself being involved in minor accidents and don’t consider yourself to be such a careful driver, then you may want to consider higher limits because of the extra protection it provides.
Where you live:
Where you live can affect your car’s vulnerability, as some areas are more prone to theft and vandalism. We all know that the crime rate in South Africa is high- with some areas being more dangerous than others. For this reason, comprehensive cover is usually the way to go when it comes to car insurance in South Africa.
Also, if you are able to park your car in a garage as opposed to on a crowded street, it will make your car a lot less vulnerable.
Comparing car insurance companies:
Once you have worked out the right coverage limit for yourself, you can use LikeMoney’s amazing comparison platform to compare everything from quotes to popularity.
Remember to stay safe on the roads this festive season!