5 tips from South Africa’s leading car insurance companies

Black Friday is here, bringing exciting deals on a wide range of new and used vehicles.

Furthermore, the festive season is nearly upon us, which will fill South Africa’s roads with travelling holiday-makers.

In both scenarios, it is critical for South Africans to ensure they have car insurance, and it is equally important that they ensure they are appropriately covered.

TopAuto has therefore scoured the Internet for insights from several of South Africa’s leading insurance companies.

These insights are detailed below.

Cheaper premiums doesn’t always mean better value

In a blog post titled “5 common car insurance myths and what they really mean,” Discovery highlighted that simply choosing the cheapest premium isn’t always the smartest decision.

For example, third party cover is usually the cheapest type of cover – but it only covers the other person’s car in an accident.

Therefore, any repairs to your car would come out of your own pocket – potentially proving more expensive over time.

“When considering the type of cover that best suits your lifestyle and if you are getting the best value for money, it is important to look at the core cover available, as well as all features, benefits, and optional rewards that will give will you additional peace-of-mind,” said Discovery.

Disclose all regular drivers

Sherry Sibeko, executive head for personal lines at Miway, penned an article for BusinessReport that noted the importance of disclosing all drivers on your insurance policy.

“When you take out a policy, the insurer calculates your premium and risk rating based on the person listed as the ‘regular driver,'” Sibeko explained.

“If that information is incorrect, you may find yourself facing a reduced payout or even a rejected claim, despite paying all your premiums.”

Sibeko added that sharing your car does not automatically invalidate your policy – but if someone is a regular driver, it is important that they are listed as such.

Install a tracker

In a blog post targeted at first-time car owners, Auto&General recommended that new car buyers install a tracker in their vehicle.

“Insurers see cars with tracking devices as lower risk because a tracker improves the chances of recovering a stolen car,” said Auto&General.

As a result, installing a tracker could reduce your monthly premium.

Drive well

In the same blog post, Auto&General highlighted the importance of driving well.

“Your driving history might matter,” it said.

“Avoid traffic fines, stick to speed limits, and don’t take unnecessary risks.”

This is because some insurers will track your driving behaviour through apps or telematics devices.

If you drive well, they could reward these good habits financially.

Do your research before driving in another country

Naked Insurance recently published a blog post titled: “Cross-border trips: Is your car insurance still valid?”

It highlighted that while most car insurance policies provide coverage in neighbouring countries, the extent of this coverage can vary.

For example, your insurer might limit the amount of time your car can be out of the country and remain covered.

Furthermore, different countries may have different laws and regulations that you should be aware of, and that may affect the type of cover you need.

“Understanding the ins and outs of your car insurance policy when travelling outside South Africa is crucial,” said Naked Insurance.

“It allows you to really relax on holiday without having to stress about possible expenses and legal hassles.”