We Answered The Car Insurance Questions You’ve Been Asking

If you've recently bought a car, you'll be considering car insurance prices or requesting car insurance quotes to keep your car covered. As one of South Africa’s best car insurance companies, Dialdirect knows a thing or two about choosing the best insurance for your needs. We’re also committed to providing excellent customer service and support to our members. Given our experience in the industry, we’ve come to understand the questions people often ask about car insurance. The good news is that we’ve got the answers! Find out more. 

Your top car insurance questions answered

Did you know South Africans purchased over 60,000[1] cars in April 2023? This is often an essential purchase, as having your own transport in a country with limited public transport options is vital for many people. Here are some of the top questions about insurance: 

1. What are the most important factors in car insurance?

If you haven't insured a vehicle before, you may not know the factors that affect your car insurance premiums.  Your age, car type, and driving record all affect your risk assessment. Younger drivers are generally less experienced. Therefore they face a higher risk of their car being damaged in an accident and, consequently higher premiums than older, more experienced drivers. Rare or expensive vehicle models can require more protection as they're popular with criminals. 

2. How much car insurance do you need?

How much car insurance you need will depend on your personal needs and budget, individual risk factors and the value of your car. You can get an idea of the cost figure by considering the value of repairing or replacing your car or the likelihood of making a claim. For example, you might drive your parents' hand-me-down hatchback that you inherited while in university that's worth less than the latest cellphone. While comprehensive cover would be best, you could choose insurance that covers third-party only, if comprehensive was not an affordable option. However, if you recently financed your dream car, you're legally required to select comprehensive coverage. This will help the bank recoup their losses should your car get written off before you've paid it off and ensure you aren't left paying for a car that no longer exists!

3. What affects car insurance rates?

Your age, gender, driving record, and where you keep your car all affect your car insurance premiums — the lower your risk profile, the lower your premium. While you can't lower your risk profile overnight, you can address other factors to decrease your insurance premiums. 

You can do this by adopting additional security or anti-theft measures like installing a tracking device in your car or parking your car in an access-controlled garage at night. You could increase your car insurance rates by engaging in behaviours or making certain additions to your vehicle. For example, your car's value will increase if you install an improved sound system. 

4. What is a  deductible or excess payment?

This is an amount of money that an insured person is required to pay out of pocket before their car insurance cover kicks in. Insurers will require that you select a deductible or excess payment amount. This is the first amount payable by you as the insured. If the claim is less than the excess then you can repair the damages on your own. You can affect how much excess you have by paying a higher monthly premium for a reduced excess and vice versa.

Whether your excess is high or low, it's a good idea to have it in a dedicated savings account should you need it. 

5. How can I save money on car insurance?

There are various ways you can save money on insurance. Some of these include:

• Increase your excess - as discussed, you can lower your monthly premiums by increasing your excess.

• Choose an insurance plan with a lower premium, like Third-party Only or Third-party Fire and Theft cover. 

• Bundle your insurance. Save money by including other insurance policies, like home or building insurance, in your portfolio. 

6. How do I choose the best car insurance company?

Now that you know your options, you'll want to assess the best car insurance company. Again, understanding your unique needs will help you make the best choice for your unique needs. Before deciding, here are some questions you can ask yourself: 

● Evaluate the insurer's claims process. How easy is it to make a claim? Can you do this telephonically or via a smartphone application? How long does it take for claims to get processed?

●   Does the insurer offer any benefits? Roadside assistance is always a useful benefit to have on your insurance policy. 

Apply for online car insurance quotes with Dialdirect

Dialdirect can help you get the best car insurance for your budget and needs. If you're ready to get a quote or have any other questions, contact us online today.

Dialdirect is a licensed non-life insurer and Financial Services Provider.

Sources:

[1] TimesLive: April vehicle sales - South Africa has a new favourite car

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.