Vehicle crime: Car Insurance is as important as ever

18,162 hijacking were reported over March and April, and recent reports indicate that vehicle crime is expected to increase as the unemployment rate grows. So even though under Coronavirus restrictions you’re probably driving less then you did before, your car insurance is as important as ever.

Between 1 April 2019 and 31 March 2020, 18,162 motorists were hijacked in South Africa, indicating that vehicle crime is still a reality in South Africa, even under Coronavirus restrictions (perhaps more so). Cancelling insurance at this time could mean a loss if your car is hijacked, stolen or broken into while it’s parked at home.

Cancelling car insurance could end up being a costly financial mistake. Even if you’re not a victim of vehicle crime, there is still the risk of being involved in an accident while driving. If you’re not covered with insuranc, you would have to hope the other person’s insurance would cover you, that’s if they’re even insured themselves. If not, you would be liable to pay for the damages yourself. In addition, remember if your car is financed, your contract usually states that your car should be insured, so if you cancel your insurance you will be in breach of contract.

Additionally, if you cancel insurance and then apply for insurance again at a later stage, there’s a chance your premiums would be higher. When assessing your risk, insurance companies look at how long you’ve been insured without claiming.

If you’ve been financially affected by Covid-19, talk to your insurer as soon as possible to see what arrangements can be made. Some insurers are offering reduced premiums or financial assistance to customers, so it’s worthwhile checking in with them.

Some of South Africa’s leading car insurers are looking at ways to help customers stay covered during this challenging time. If you have some extra time on your hands, now is probably a good time to start shopping around for more affordable car insurance. The MotorHappy team of advisors are available and ready to help you find the best insurance quote for your current and future needs. With so many factors to consider, choosing car insurance can be overwhelming. The MotorHappy team is dedicated to making the process smoother by sourcing quotes from some of South Africa’s leading insurance companies. Click here to get your free car insurance quote.

• Your insurance premium might be lower if you consider using one company for all your insurance needs – so house insurance, life insurance, etc.
• Carefully select your excess. A higher excess might mean lower premiums, but if you have an accident you would need to ensure you have the funds available to pay the higher excess fee.
• Find ways of lowering your risk profile. For example, improve home security, park your car in a locked garage, install a car alarm and a tracker, etc