Importance of a car insurance

Getting your first car is a significant event, regardless of whether it was a gift from family or the result of your first full-time paycheck.

It stands for liberty and self-determination. Suddenly, you are free to travel whenever and anywhere you like (as long as you can afford to keep your tank full of petrol).

However, there are significant obligations associated with owning your first vehicle. Besides fuel and maintenance expenses, you should have insurance.

Although it is not legally necessary for cars in South Africa to obtain insurance, failing to do so can have detrimental effects.

In the event of an accident, you may have to pay out of pocket if you are in an accident with someone else. This is besides having a considerably harder time getting your vehicle repaired or replaced.

However, when selecting an insurer, you should not go in blind. With the appropriate information, make sure you pay the lowest possible premium for your insurance and have the most complete coverage available.

Understand the insurance basics

There are a few fundamentals to be aware of before selecting insurance. First, it is crucial to understand that when you request an insurance quote, you will receive a few choices. These choices can be divided into three groups: comprehensive cover, fire and theft cover, and third-party cover.

The minimum coverage you should have protects you if you cause harm to another person’s vehicle in an accident. It is known as third-party coverage.

Comprehensive coverage takes care of almost all of your vehicle insurance needs, while third-party, fire, and theft coverage protects your vehicle in the case of a fire or theft. Your premium will change depending on which of these alternatives you select.

You will also have to pay an excess if you file a claim. In short, it is the initial amount you have to pay the insurer in the event of a legitimate claim. You are taking the risk here, with the insurer bearing the greater financial burden.

Your premiums will be cheaper the greater your excess. Thus, while selecting an insurance policy, it is critical to understand whether you would rather take advantage of discounts or pay a little bit more each month.

Your age matters

Because of your higher risk profile, insurance will cost more if under 25.

You can still reduce your premiums even though there is little you can do about your age except wait for time to pass naturally. You can exhibit safe driving and receive discounts by selecting insurance that has integrated telematics into its application.

Sweat the small stuff

Make an informed choice on more than simply appearance and performance when selecting your first vehicle.
When considering a purchase, you should also consider the cost of insurance for the vehicle.

The make and type of vehicle affect the cost of insurance, among other factors. Certain car makes and models are more expensive to insure because they are more likely to be stolen or hijacked. Other elements are also taken into account, such as the car’s safety features. The vehicle’s colour might also have an impact. Cars with metallic bodywork are more expensive to refinish than those with basic paint, which affects insurance rates.

When you are at home and work, make sure your vehicle is somewhere safe and hidden. If you take those precautions, your vehicle will not only be less likely to be stolen but also less likely to sustain damage from falling branches or hail during severe weather.

Watch out for changes

It could be tempting to personalise your new car with your stamp of personality. Nothing prevents you from doing so, but you should be aware that changes you make to your car could affect your insurance.

For example, adding a new sound system could raise the worth of your vehicle and increase your insurance costs. Remember to purchase insurance for any non-standard items you install on your car to be covered in the event of a claim.

Modifications like aftermarket turbos and lowered suspensions may increase your car’s risk and hence raise the cost of insurance. On the other hand, drastic alterations such as adding nitrous oxide could render your vehicle uninsurable.

It matters what additional

Selecting the simplest, most basic insurance plan can make you feel you are fiscally responsible, but that’s not always the case. You can save more money by selecting insurance that offers extras like roadside help.

For example, having your car towed might not seem like a big deal until you have to pay for it yourself.

Additionally, pick an insurer that makes establishing coverage and filing a claim as easy as feasible. Finding, printing, and filling out dozens of documents is the last thing you want to do after your car is stolen or involved in an accident.

Get insurance from the beginning

Your first car, no matter how big or small, expensive or inexpensive, will probably hold many special memories for you.

However, if your car gets into an accident and you cannot fix it or stolen and you cannot replace it, those memories will rapidly become sour.

You must select an insurer who can fully comprehend your policy and provide you with value in addition to having insurance.

• Information from MiWay