When comparing car insurance quotes, it’s essential to look at the coverage limits, excess amount, monthly premium, discounts, and the insurer’s reputation.
A low monthly premium may have caveats such as limited coverage and a large excess amount, or it may be from an insurer with a less-than-stellar track record for things like customer service and paying out claims.
Important Ts & Cs of every car insurance quote
When comparing car insurance quotes, the cost of the policy is naturally very important, but this shouldn’t be the only factor worth considering.
According to Santam, there are four other important elements in each insurance contract that are vital to review, including:
- Premiums – Cheaper premiums may mean less coverage or higher excess amounts
- Excess – A higher voluntary excess can mean lower premiums, but it also means you’ll have to pay more if you make a claim
- Discounts – Many car insurance companies offer discounts for things like safe driving, mileage limit-based pricing, and bundling policies
- Coverage limits – Check if the coverage limits for things like vehicle sum insured, liability, collision, and comprehensive coverage meet your needs
The reputation of the insurer is also important, and can be gauged by looking at customer reviews and asking your peers to find out whether the company has a good track record of paying out claims and providing excellent customer service
If a specific insurer ticks these boxes, you may have found the right one for you.
The right insurance for you
Choosing the right kind of insurance can be equally as tricky as choosing the right insurer, as there are several levels of cover available.
Comprehensive car insurance is the most complete form of coverage and provides protection against theft, hijacking, accidents, and other unexpected events.
“One of the key benefits of comprehensive car insurance is that it covers damage to your own vehicle as well as damage to other vehicles and property,” said Santam.
“This means that if you are involved in an accident, your insurance will cover the cost of repairs to your vehicle, as well as any other vehicles or property that may have been damaged in the accident, for which you are legally liable.”
If your car is financed through an institution like a bank, comprehensive insurance will also be mandatory.
Comprehensive car insurance is typically the most expensive option, but there are other types of coverage that you will be able to get from a major insurer such as fire, theft, and hijacking; and third-party-only cover.
As the name implies, fire, theft, and hijacking insurance only protects you in the case where your vehicle was damaged by fire, or stolen/hijacked.
A third-party insurance policy, on the other hand, safeguards you from legal liability when damaging another person’s property but not for any damages to your own vehicle.
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