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Steps for getting your car Insured

Having insurance on your vehicle will protect you from disastrous financial loss if you are involved in an accident with an uninsured vehicle.

Choosing car insurance involves finding the company you wish to use and determining the amount of coverage you need for your car. If you own and drive a car on South Africa's roads, you should see car insurance as a necessity that will protect you from becoming indebted if you ever have an accident or if your car is stolen.

Follow these steps to getting your car insured:

Determine your budget

Your car insurance will become your protection against financial hardships associated with a vehicle accident or issues with your car. Understand your budget to determine how much money you can comfortably afford when paying for issues that could occur with your car. Once you know your budget, you might be able to negotiate better premiums with your insurer - or you would know what you need to do to lower your premiums (such as install an anti-theft device, request/accept a higher excess, etc.)

Assess your car and your driving habits 

The type of car you drive will determine your car insurance needs. If you have an older car, you may not need as much coverage. It's also important to consider your driving habits as you weigh the auto insurance coverage you need. If you don't drive often, you may only need the minimum coverage. However, if you commute daily and regularly drive in heavy traffic, you will probably reuire much higher limits.

Request quotes 

Once you have an idea of your auto insurance needs, it's time to request some quotes. Get at least four uotes from comparable companies. Compare the services of each company, as well as the premiums. Read reviews of the companies, and find out as much as you can about how they handle claims. Review the financial ratings of any company you are considering using.

Compare apples with apples

Once you have at least four different quotes, carefully compare them to see which offer best suits your needs. This can get pretty confusing, but below are a few important questions to ask:

  • What is the excess and is it a flat rate?
  • Are penalties charged for claiming in the first six months or the first year?
  • Will you be covered if other people drive your car?
  • Is car hire included if something happens with your car?
  • What kind of coverage is it? Is it comprehensive?