Car Insurance tips: Understanding Car Insurance

Whether you are currently shopping around for car insurance, looking to save money on your current policy or your policy is about to expire. It is very important to understand how your policy works so you are not left paying a large sum of money every month and you are not properly insured. Follow these car insurance tips so you too can stay ahead of the curb and save money.

The following car insurance tips are designed to aim your understanding of your vehicle insurance policy and all the various parts that make up your coverage. It is also to assist you in purchasing the insurance coverage that suits your needs best.

Important Car Insurance Tips

Where can you purchase car insurance?

Normally you have about three options to purchase licensed car insurance from namely:

  • Dealership insurance
  • Insurance Agent
  • Insurance Broker

Insurance brokers sell insurance on behalf of a number of various insurance companies. You should ask your broker to provide you with the names of all the companies that they represent. Insurance agents generally represent only one insurance company. And obviously dealership insurance is car insurance offered by the company that you purchased the vehicle from.

It pays to compare car insurance quotes

There are many insurance companies who sell auto insurance in South Africa, so it’s important to do your homework to find the best prices and bargains. Namely there are five things you should think about when selecting your insurance broker, agent or company:

Licensed: Insurance can only be sold by a licensed broker, agent or insurance company in South Africa.

Rates: Lots of companies sell insurance policies and rates that vary greatly from one company to another so it pays to shop around. You should aim at getting at least three quotes from different direct writers, brokers or agents.

Coverage: Possibly the most important factor, it is important to compare policies in terms of coverage as the particular amounts and range of coverage for example ( Deductibles, limits and optional coverage) can vary from company to company. Furthermore you can find that some companies do not cover certain car parts which can be a major problem if your car breaks down and you don’t have the money to fund the repairs like a broken gear box which is very costly. Make sure the coverages are comparable on each quote you receive. You may want to question what the company’s practices are if you have an at-fault claim or under what circumstances your insurance would not be renewed. Make sure you compare similar policies. When buying auto insurance, weigh the policy cost against coverage provided.


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