Getting Car Insurance: Mistakes that Can Ruin Your Purchase

Purchasing a car is an important financial decision. Because of this, you want to protect your valuable asset by investing in an auto insurance policy. Although not mandatory in South Africa, having a policy will give you peace of mind knowing that you don’t have to worry about covering accident-related costs out of pocket. But, it is important to know what you are getting and avoid making the common mistakes that others make. These mistakes include the following:

Failing to Determine the Coverage You Need

Every car owner has unique protection needs, which depend on a lot of factors such as the type and model of your car, its price, driving experience, how often you drive, and where you live. Full coverage can be quite expensive, so you will want to find a balance between cost and coverage. An insurance agent from Miway can help you understand your insurance options, so you can pick the right that meets your specific needs.

Not Shopping Around

Before you buy auto insurance, shop around first and request quotes from at least three companies. This way, you can compare their rates and features. Never settle with the first offer you get. These days, a lot of insurance companies are competing for people’s business, so they offer unique packages to try to attract customers.

Lying in Your Application

When you fill out an insurance application form or claim form, you should provide only the facts. Insurers have access to your driving records and other information and can spot inconsistencies. Lying can make them decide to reject your application. Also, when a collision occurs and the company discovers you lied, it may deny your claim and even cancel your policy.

Not Updating Your Policy

Car insurance companies will treat your forgetfulness like a lie. For instance, if you let your teenage driver drive your car and you forgot to add them to your policy, this can have serious consequences. When your life situations change, such as when you relocate or marry, you need to update your policy. Sometimes, updating can lower your monthly premium.

Not Picking the Right Deductible

In general, a lower deductible translates to a higher insurance rate; however, less out-of-pocket expenses when a crash happens. Meanwhile, a higher deductible will save you money on your policy but tends to make you pay more when you get involved in a collision. Ensure you pick the right deductible that fits your situation.