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We all want cheaper insurance. Though it is a necessity, most people tend to view their monthly premium as a grudge payment. Insurance companies across the board use the lure of cheaper premiums very effectively in marketing campaigns; in certain cases even offering to pay out an agreed sum of money should they not be able to provide you with a cheaper quote.
But what exactly is cheaper insurance? A cheap monthly premium is not the only consideration to keep in mind. An insurance policy is, in essence, a legal document, and the document in its entirety has to be reviewed thoroughly in order to ascertain the cost effectiveness of your insurance.
A starting point would be to confirm that the policy you select is fit for purpose and covers your insurable interest (for instance, if you are the only person driving your car, there is no reason to have a policy permitting more than one driver).
In addition, the following can be considered:
Excess
This is where most people lose with their vehicle insurance. The amount of excess you will pay in the eventuality of a claim is directly proportionate to the cost of your monthly premium. As an example (using very simplified figures):
Sandra pays a monthly premium of R100 towards comprehensively insuring her car, a late model sedan. She is covered for the full retail value of her vehicle should it be stolen. Her excess is 15% of the claim with a minimum payment of R5, 000.
Dan pays a monthly premium of R150 for the exact same vehicle. He is also covered for the full retail value of the vehicle, but his excess in such an eventuality is only 5% of the claim, minimum R2, 500.00.
Assuming that the model of car in question has a retail value of R100, 000.00, Sandra will only get a settlement of R85, 000.00, whilst Dan will get a payout of R95, 000.00.
In addition to the basic excess explained above, additional excesses should also be taken into consideration. The full description of excesses will always appear in your policy. You can use this schedule of excesses to help you determine whether your cheap car insurance is really as cheap as claimed.
Policy Wording and Inclusions/Exclusions
The way in which your policy is worded along with the specific inclusions, exclusions and conditions pertaining to your insured vehicle also plays a huge part in ascertaining how affordable your car insurance is.
Let’s continue with Sandra as an example and assume that she has lodged a claim for a stolen vehicle. Sandra bought her car with a factory-fitted alarm, but never installed a VESA-approved gear lock, which her policy stipulates as a security requirement. Because of this policy condition, her claim might be repudiated. This means that her “cheap insurance” potentially ended up amounting to “no insurance”.
Dan, for instance, might have installed an expensive sound system in his car, never realizing that additions such as those are excluded in his policy. He might have his claim settled for the retail amount of the vehicle minus the excess, but he will incur a loss with the sound system.
On the other hand, specific inclusions might make the insurance policy more worth-while.
Enticers (or Policy Sweeteners)
Policy sweeteners are terms and conditions in your policy with the specific purpose of making it more attractive.
An example of a policy sweetener might be that you will pay no excess (or greatly reduced excess) should you lodge a windscreen claim. Or that an extra driver can be added to your car insurance policy without affecting the monthly premium.
These are always worthwhile to consider when looking at getting the cheapest car insurance.
To get cheap car insurance quotes can sometimes be a lengthy and time consuming process, not to mention the difficulty thereof. However, the world of online insurance quotes, and the extreme growth of online insurance companies and networks, has made this process of getting cheap insurance quotes much more accessible and easy to gain. This is done through the network of insurance solutions that are brought up as a result of the details and information that is given into the insurance company website. The prospective insurance customer who is looking for cheap insurance quotes must then choose their best fitting solution out of the cheap insurance quotes that are presented to them.
The cheap car insurance quotes can be offers for a large variety of insurance options and products from many different companies. It is important for the future insurer to compare all the cheap insurance quotes and made a decision to ensure comprehensive and complete insurance coverage. The cheap insurance quotes costs are subject to many different factors.
When regarding the car insurance industry, as in car-insurance.org,za, the cheap insurance quotes that are presented depend on the company that is used, and the respective policy thereof and the type of motor vehicle that is being insured. Other factor that can affect the cheap insurance quotes in this industry are the age of the driver for which the cheap insurance quotes apply, the location of the vehicle, the model of the motor vehicle, as well as the particular use of the vehicle. All of these notions affect the cost of the insurance solutions, and thus the cheap insurance quotes that are on offer, click on the banner below to receive cheap car insurance quotes!
To find affordable car insurance, one must search through the different options of the car insurance companies to discover the right one which suits you. The cheapest car insurance is made easier to find through the online insurance services.
Many car insurance companies provide the options of the cheapest car insurance through free online quotes. By these means, prospective client must fill in their details and requirements for their cheapest car insurance and submit it. Following this they are presented with the respective cheapest car insurance options determined by their needs, and all they must do is choose the most appropriate cheapest car insurance solution for themselves. This insurance solution is then made into a policy that the client must approve, and then the insurance is attained.
Car insurance can be made into the cheapest car insurance by following a few tips on lowering the car insurance premiums. One can lower the excess on lower cars, make sure the residence of the car is in a noticed safe area, enhance the security features on the car and ensure the drivers only of the car. These are only a few of the suggestions, however one must remember that the premium of the car is determined according to age, gender and location of the driver, as well as the type of car and the usage of the car. Therefore, by taking all these factors into consideration, the cheapest car insurance solution can be found. To discover the cheapest car insurance around, one must search until all their needs are met and they are completely satisfied with their cheapest car insurance option.