Mistakes to avoid when buying car insurance
Cheap deals often mean that you’re not properly covered when you need it most
In a 2023 claim, a 25-year-old driver was left to settle R135 200 on his R336 000 VW Polo R-Line after it was written off.
The driver had initially applied for comprehensive vehicle insurance but was unhappy with the quote of R3 000 on his monthly premium with an excess amount of R5 000.
He opted for a different insurer that allowed him to reduce his premium by agreeing to an extra “voluntary” excess.
This voluntary excess ended up being a whopping 55%!
Mistakes like these can have serious implications when it comes to claims time. That’s why it’s so important to choose the best car insurance for yourself and make an informed decision. In this guide, we take you through car insurance mistakes to avoid so that you don’t get left in the cold.
1. Focusing solely on price
As we saw above, it’s tempting to go for the cheapest option when comparing car insurance policies. After all, no one likes spending more than they have to. But price alone should never be the deciding factor. Often, those lower premiums come with less coverage, higher excess payments, or restrictions that may not suit your needs. Always take the time to check what’s included in the policy. Does it cover theft, fire or damage caused by natural disasters? Are you covered for third-party liability? Sometimes spending a little more upfront saves a lot of hassle later.
2. Not understanding the policy coverage
When buying car insurance, it’s crucial to know exactly what you’re getting. Too often, people skim through the details or don’t read the fine print, assuming they’re covered for everything. You don’t want to find out too late that your insurance doesn’t cover you for specific incidents.
Take third-party insurance for instance. While it will cover any damages you cause to someone else or their vehicle, it won’t cover your own damages or things like fire or theft. This can be a costly mistake, especially if you were under the impression you had broader protection.
3. Setting a high excess to lower premiums
Increasing your excess (the amount you pay towards any claim) can lower your monthly premiums. While this seems like an attractive option, as we saw in the above example it can become a problem if you can’t afford to pay the excess in the event of an accident. Make sure your excess is set at an amount you could realistically pay without causing financial stress.
4. Not comparing enough quotes
Many people fall into the trap of accepting the first quote they receive. It’s easy, it’s convenient, and it saves time. But by not shopping around, you could be missing out on better deals or more suitable coverage.
Take the time to compare quotes from different insurers. Use online comparison tools, and don’t hesitate to contact insurers directly to negotiate a better rate. Remember, each insurance company has its own pricing model, and premiums can vary significantly between them.
5. Forgetting to update your policy when things change
Life changes — sometimes subtly, sometimes dramatically. Whether you move house, switch jobs, or even just change your commute route, these changes can affect your car insurance. Failing to inform your insurer about significant changes might result in a denied claim if the information on your policy is inaccurate.
If you move to a different area, it could affect your premium, as some locations are considered higher risk than others. The same goes for changing where your car is parked overnight — moving from the street to a garage might lower your premium. Always keep your insurer updated on any changes to avoid complications later.
Buying car insurance is about more than just getting the cheapest deal. Avoiding these common mistakes can save you money and ensure that you’re properly covered when you need it most. Take the time to understand your policy, compare quotes and make informed decisions. That way, you’ll avoid nasty surprises down the line!