POINTS TO REMEMBER:
This 10-step guide will drive you through the basics of car insurance.
Don’t under-estimated the seriousness of insurance cover. Make sure your insurance
policy is in place before you drive anywhere in your new car.
1. Be covered from the start
Don’t under-estimated the seriousness of insurance cover. Make sure your insurance
policy is in place before you drive anywhere in your new car.
2. Make it safer and reduce your costs
Did you know that fitting alarm systems, tracking systems and anti hi-jack systems
can save you on your monthly car insurance premium because they lower your risk
profile. Ask your insurance company to go over all your car insurance options to
find out how you can save on you insurance premium.
3. Insure the driver!
Make sure the regular driver is the person that the car is insured for. This could
affect the excess of your car insurance if the car is in an accident with a driver
other than the regular driver.
4. Insure for the correct value!
Always ensure that you insure your vehicle for the correct value. Underinsurance
may sound attractive when calculating a premium, but when you do need to claim,
your claim will be limited to the sum insured and the insurer may even apply average
to your claim.
5. Insure the extras!
It is important to remember to specifically add any additional accessories your
vehicle has to be covered by your car’s insurance policy. These extras include accessories
that aren't factory fitted. You must specify that these be covered as they do not
fall under the basic cover. These extras include car radios, mag rims, special interior
trims, tow bars, window tints and even metallic paint.
6. Private Use vs. Business Use
Is your car insured for the correct use? For example, if your car takes you to work
and back then you should take out car insurance for Private Use.
If you use your car to see clients or make deliveries, you’ll need to take out Business
Use Car Insurance.
7. Do not tow!
Do not tow! Some car insurance companies insist that only authorised towing companies
tow your car. Get a "Do not tow" sticker so you can make sure your car is not towed
by an unauthorised towing company.
8. Inspection ready
If you are insuring a pre-owned car, the insurer may insist that you take your car
to a car inspection centre (like the AA) to be inspected. Make sure you keep a copy
of the inspection certificate as this can influence future car insurance claims.
9. Read the small print!
You should receive policy documents from your insurer within 30 days of inception
of your policy - if you haven’t - contact your insurer and request them to forward
you the policy documents including the policy wording. If you are always familiar
with your car insurance terms and conditions you will know what you are covered
for and what you aren’t. Knowing the terms lets you manage your risks better by changing
your car insurance policy to best cover you.
10. Follow procedure
In case of an accident you must ensure that you take all the insurance details from
all parties involved in the accident and not to admit liability to anyone at the
scene. It is crucial that you report it to the police within 24 hours of the accident.
You will need a police case number in order to make a valid car insurance claim.