Car Insurance Pitfalls to Watch Out For

Car Insurance Policies Pitfalls to watch out for:

One of the most important aspects you face as a car owner is insurance – and picking the right insurance policy. If anything happens to your vehicle; if it gets broken into, hijacked, stolen or damaged in an accident the unexpected cost for repairs and replacements can be extremely high.

Whether your car is under finances or paid, car insurance is vital to have. In some countries, the law does not require vehicle owners to have insurance. However, in South Africa, all car owners must have full comprehensive car insurance. Taking out a policy is a significant additional expense but one that can save you having to pay for unexpected expenses – that often hurt your wallet and your savings plan. There are many different policy options to choose from — vehicle insurance is a not-a-one-size-fits-all product. When purchasing a new policy it is important to understand exactly what that policy covers and what it doesn’t – because there are so many snares when it comes to picking the right one.

The majority of consumers are notoriously bad at reading any documents, contracts and policies for the products and services they purchase, and their 30 000-word car insurance policy is no different. That’s why it is vital to ensure you don’t fall victim to these infamous car insurance policy pitfalls.

Here is a list of the most common car insurance pitfalls to look for.

Be Careful of Cash Back Offers

We’ve all heard the ongoing radio advertising where well-known car insurance companies offer you a few hundred rands in cash if they can beat your existing insurers premium when they give you a quote over the phone. Think about this, let’s say your insurer gives you R400 once off because they can beat your insurance quote, that is R33.333 per month over a year if you stay with them that long… But what if you could save a few hundred Rands each month on your insurance an compare car insurance on independent and impartial websites like BetterCompare.co.za, that could equate to thousands of Rands per year.

Compare Fairly

There are a lot of insurance comparison websites out there but what you don’t know is a lot of them that only compare brands which are owned by their own company in their call centres. Yip that’s right.

They advertise that you will get up to 8 quotes or more but most if not all of them come from the companies they claim to own. Product rates are also advertised similarily, so it makes it difficult to compare which policy or product offering is best for you. These well-known services are coming from a place of the comparisons biased – and their advertising is very misleading.

High Excesses

To compare one insurance premium to the next you should try ensuring that the excesses are similar. Some insurance companies will quote a lower premium, but the excess can be over R10,000 if you claim.

It’s never easy picking the right insurance policy for you and your vehicle, but the right one is out there, you just have to look in the right places. Now that you know what car insurance pitfalls to watch out for and what other comparative sites really do to help you find the best policy you can visit us at SaveMoney or our partners at BetterCompare to find out how we can help save you money on your car insurance premiums today.