Car insurance is a fact of life for anyone driving a vehicle. And although most of us want to save on car insurance as much as possible, there are important things to take into consideration before shopping around for car insurance quotes.
So, to determine how much and what type of car insurance you need, consider this:
1. Have you thought about all the costs?
Price is the deciding factor for many of us when it comes to choosing a car insurance policy. But, we forget that cost is determined by a combination of several factors like excess structure, additional non-standard items fitted onto a vehicle, and even the amount and way a person drives.
So know yourself and your situation: if you rely on your car to make a living, for example, including car hire on your policy could be a lifesaver in the long run.
2. Lower premium vs. lower excess
It all depends on your financial situation.
Let’s say you have some money saved up, it might be worth choosing a lower premium and a higher excess. Should a road incident occur, you’ll be able to afford the necessary fee, even if it is higher than normal.
But, if your financial situation is less rosy, it’s worth paying a slightly higher premium each month. This way, if you need to claim, there might still be an excess to pay, but it won’t be more than you can afford.
3. Do you understand the fine print?
Thanks to technology, it’s now easier than ever to get a number of quotes in a matter of minutes. But that process can still be confusing, as it doesn’t usually include any detailed information about what exactly is being offered.
Fear not, a good broker should be able to help you make an informed decision about the cost of the car insurance policy and its benefits. But remember, it’s still up to you, the consumer, to ensure you fully understand the quote and the level of cover offered.
4. Have you shopped around?
Seeing as the insurance space is very competitive, consider getting a minimum of three car insurance quotes from a variety of reputable companies.
Every insurer tries to differentiate their packages so that they stand out in the market. But the special feature of one product may not necessarily appeal to everyone. So shop around and find the right solution that suits your specific needs.
5. Other factors to bear in mind
Market value, age of the vehicle and added extras are just a few variables insurers consider when determining their price. Driver age, vehicle storage and usage, secondary drivers and driver behaviour are considered too, as is good risk management like parking in secure locations, fitting a tracking device, and ensuring that the correct (depreciated) market value of the vehicle is recorded by the insurance company.
There may not be a plan that ticks every box, but keeping the above points in mind will definitely help you find the one that’s best suited to your unique personal car insurance needs.
If you’re looking for affordable and reliable car insurance that offers a great Cash Back Bonus, consider Old Mutual iWYZE who offers 10% of your premiums back in cash every 36 months. Make the wise insurance choice and get a Car Insurance Quote today.
iWYZE is underwritten by Old Mutual Insure Ltd (FSP12), an authorised FSP. Risk profile dependent. Terms and Conditions apply.
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