|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
You take out vehicle insurance, glance over the policy and sit back and relax, confident that all is well. Unfortunately, it is not as simple as that. It is important to read your insurance policy so that you are familiar with the terms and conditions and possible exclusion clauses. Let us shed some light on the aspects of car insurance that you need to know about…
Know the promises you're buying
Taking out car insurance means that you will be paying your insurance company to pay out on certain misdemeanors in the event of uncontrollable circumstances. The onus is on you, the insured, to know exactly what these circumstances are and what your motor insurance cover will give you, despite their promises.
Keep the promises that YOU are making
When taking out vehicle insurance, you need to provide a lot of information. Insurance companies need to know the type of vehicle that you drive and who will be driving it as well as where the vehicle is kept overnight. This information is used to determine your cover and your insurance premiums. If this information is not correct or (deliberately) false, you will run the risk of not being paid out for a claim.
Factors that influence the cost of car insurance premiums
There are several factors that determine the cost of your car insurance. When your car is damaged or stolen, the insurer will pay out your claim based on various factors that are established before the policy is finalised.
The type of car that your drive:
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
- Whether you drive a bakkie, a sports car, a family car or a 4×4, some vehicles cost more to repair or replace than others. Certain types of cars are more at risk of being hijacked or stolen than others.
The age and condition of your car:
- The age of your car influences your premiums as well. An older car may cost less to repair or replace and it may be more challenging to find replacement parts. When insuring a second hand car, make sure that you get an AA test certificate so that you can negotiate lower insurance premiums.
How secure your car is
- Where you live and whether your motor vehicle is locked away securely at night also determines your insurance premium. If it is fitted with anti hijacking and tracking devices, premiums are usually reduced.
The age of the driver
- First time drivers are often penalised through higher premiums until they have proven to be responsible drivers. Conversely, drivers over the age of 25 who are generally more experienced often get discounts on their insurance costs.
Insurance claims evaluation and payout
If your vehicle is damaged the insurance company will first establish whether the quote you submit for repairs is reasonable, after which the damage will be repaired. If the cost of repairs to your damaged vehicle exceeds 70% of the car's value, the insurer may decide to write the car off and pay out the market value of the vehicle instead.
Car insurance is a contract in which the insurer assumes responsibility for any loss or damage the insured may incur. It is important to read your insurance policy carefully to confirm that you have a thorough understanding of the terminology, exclusion clauses and all terms and conditions.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|