When buying car insurance we often try to keep the premium as low as possible. But there are some options you want to consider carefully. Car Hire, Extended Cover and more... We discuss these below.
Most car insurers will offer three standard types of cover:
Comprehensive insurance covers is the best level of cover available. In the event of an accident, the insurer will pay for your car damages as well as the car damages to a third party involved. You are also covered for fire and theft of your vehicle. Liability also covered, refers to third party claims against you for bodily injury or damages to their assets.
Third party, liability and theft are self explanatory, and it should be made clear that even thought the premiums are likely lower than comprehensive cover - you won't be covered for costs to your own vehicle.
Liability cover is there to protect you should you be liable for injury to persons or damages to property/assets. Its something we easily forget about being low in probability and premium cost but when needed can often be high in claim value. Check your policy schedule for your level of cover.
Not having comprehensive cover is a huge risk to your financial health especially if you drive a high value car.
Third party only will cover cost of damages to a third party's vehicle in the event of a claim. You are not covered for fire, theft and liability.
Additional cover options are available with your choice of product above. These come at an extra premium but have great value attached to them if you're ever have to make a claim.
Your car has met an accident, and needs to be repaired at the panelbeater.
Since they started in June 2012 King Price has seen growth by the thousands each and every month in South Africa.
King Price car premiums decrease monthly as your car depreciates. As an example a
Traditional insurance total premium over 36 months would result in R29 349, but
King Price the total premium over 36 months amounts to R23 520. An
instant 20% saving of over R5 829!
How will you get to work to earn your livelihood? With the amount of cars on the roads in South Africa, there are always delays and backlogs in paperwork and repair times. Some headaches when repairing your vehicle:
All the above gives you an idea that getting involved in an accident can be extremely frustrated. God forbid you need to recover physically and psychologically as well. These take time.
For an extra premium amount monthly you have the option to take out car hire cover. This gives you the convenience of getting a hired car to commute to work while your car is being repaired!
Therefore a car hire option is important to consider well in advance, at the time of accepting the insurance cover!
If you're insuring a brand new vehicle, or high-value recently manufactured vehicle, it is very important to understand what top up or extended cover options you have.
In the event that your car is stolen or written off, the insurer will only pay out retail value at most which could result in you having a larger outstanding balance owning to the vehicle financier.
As in the above, there are times when your comprehensive cover will still result in you being out of pocket, making it difficult to replace that exact vehicle.
Top up cover should therefore be considered, and it is worth the extra premium paid. The below are typical extended coverage features:
Read your policy document carefully for the list of exclusions under each. i.e. circumstances under which extended features are not covered. Also read sections on 'how to claim' to ensure you put in your claim within the time-limits - remember top up cover may be with a different insurer so it is important to inform them with urgency.
An insurer will give you preferential, discounted premiums if you combine your household contents policy with your car insurance policy. These discounted premiums will save you money over time.
You will also have the convenience of dealing with one insurer, and be able to update both covers annually.
Your policy document will show each contributing premium separately as well.