What’s the right amount of car cover?

Last updated on 19th November, 2024 at 09:15 am

Finding the right car insurance for your needs can be challenging, with so many options on offer today. When it comes to protecting your car and your pocket, what should you be focusing on?

Reading time: 5 minutes

In this article, you’ll learn:

• How your car usage influences your choice of car insurance policy
• The various types of car insurance policies
• What to look for in a car insurance policy

You might think that one car insurance policy is much like the next, so you may as well choose the cheapest one and call it a day. But many factors influence your cover, such as where you live, how you use your car and where you park it. Here are four key factors to consider when selecting the right car coverage:

1. Understanding your car’s usage and risk profile

Before choosing a car insurance policy, it’s important to assess how and where you use your car. For instance, if you drive on the N1 between Pretoria and Joburg every day, or live in an area with high traffic, your risk of accidents might be higher. This could mean you need more comprehensive cover. Alternatively, if you only drive occasionally or use your car for short trips, a different level of coverage may be more suitable.

Where you park your car – whether at home or work – also matters. If you park in a garage or a secure area, you may be eligible for lower premiums compared to parking on the street. Take all this into consideration and look for a policy that offers the right amount of cover for theft, vandalism and other risks that may apply to your environment.

2. What to look for in a car insurance policy

Yes, you must read the fine print when taking out a policy. Pay attention to these features to make sure you get the most value from your policy:

Comprehensive vs third-party cover: Comprehensive insurance covers your car for theft, accidental damage and third-party claims – however, it’s also the most expensive option.
Third-party insurance, while cheaper, only covers damages to other vehicles or property if you’re at fault.

Excess payments: The excess is the amount you must pay out of pocket when you claim. Policies with lower premiums often come with higher excess fees. Make sure you can cover the excess without blowing your budget in the event of an accident.

Additional benefits: Look out for extra benefits such as roadside assistance, rental car cover and coverage for personal belongings inside the vehicle. These can make a significant difference in the value you get from your policy.

3. Regularly review your policy

Just because you’ve signed on to a car insurance policy, doesn’t mean you’re locked in for life. Regular reviewing is essential to ensure it still meets your needs. Start by reading through it and comparing it to your current situation – maybe you’ve moved to a new area or bought a new car, or perhaps you’re parking in a safer spot or driving different distances. These can all impact your coverage needs. Even if you’re happy with your insurer, it’s a good idea to get quotes from other providers, as rates and coverage options can change. Consulting an insurance broker can also help you find the best value.

4. Don’t just look at the rands and cents – focus on value

When it comes to car insurance, the cheapest option isn’t always the best. A policy that costs a little more but offers extensive coverage can save you a lot of money and hassle in the long run. Think about what you’d want covered if you were in an accident or if someone broke into your car, and choose a policy that ensures peace of mind, even if it means paying a bit more upfront.

Bonus reading: learn what your car colour says about you