Cheap car insurance… Is it worth it?

Last updated on 5th February, 2024 at 01:42 pm

Why comprehensive coverage makes financial sense

Reading time: 3 minutes 

In this article, you’ll learn:

• Why having car insurance is important
• What comprehensive car insurance is and how it can benefit you financially
• What to look for in your car insurance contract

School fees, home loans, vehicle finance, groceries… Our monthly list of expenses just seems to get longer and more expensive. If balancing your budget is a delicate act between choosing what is necessary and what is a luxury, you might think cutting back on your car insurance could be an easy way to save some cash. But a cheaper insurance policy might end up costing you much more in the long run…

Why is car insurance important?

A car accident, damage, or theft can be financially crippling – car insurance helps cover expenses related to vehicle repairs or replacement. This means you won’t have to dip into savings or take on debt if you suddenly have to get your wheels running again. And your insurance doesn’t only cover you – if you have third-party insurance, it will also cover the damage to another vehicle if you’re in an accident. Some comprehensive car insurance options also come with many benefits, including roadside assist, driver services, key replacement, rental cars, or trip monitoring.

What should you look for in a car insurance contract?

Picking car insurance is about more than the monthly premium – you should always look at what exactly you are covered for and make sure it fits within your needs and budget. Inadequate coverage could leave you personally responsible for costs that exceed your policy’s limits, so carefully review the policy to understand what it does not cover. Common exclusions may include intentional damage, racing, or modifications not approved by the insurer. You should also check what your deductible, or excess, would be – this is the amount you must pay out of pocket before your insurance coverage takes effect. Lower premiums often mean higher deductibles, which could take an unwelcome chunk out of your budget.

What is comprehensive car insurance?

A comprehensive car insurance plan comes with more coverage, more benefits – and more cost. It will usually cover more expenses related to car damage or theft, including liabilities, fire, weather damage and third parties. It is the more expensive option, but it usually covers you for every eventuality (depending on the plan you choose) so you’re not left forking over cash if your car is stolen or damaged.

Why does comprehensive car insurance make financial sense?

It might cost more per month, but comprehensive car insurance could save you thousands of rands in the long-term by sparing you from significant out-of-pocket expenses in the event of accidents, theft, or damage. We all hope to stay safe on the road, but if something happens, having comprehensive car insurance may not only cover your expenses, it will also give you peace of mind – and that is priceless.