You may have
bought car insurance for so long now that you have
become a seasoned buyer. But has it ever occurred to
you that you’ve been using the wrong approach when
buying? That is correct. A lot of people go about
acquiring car insurance the wrong way, spending much
more than they really should on a given policy.
Worse, they may end up with the wrong car insurance
policy year after year, and not realize it.
How then is the best way to buy car insurance? It
starts with knowing what type of cover to buy. You
must be able to determine the cover that best suits
your car best. Is it comprehensive, third party or
third party, theft and fire? New cars, cars with a
low safety rating and fast, powerful cars are best
protected under a comprehensive cover. Older cars on
the other hand can be protected under third party
insurance. The choice boils down to individual
requirements and type of car. Consult a car
insurance expert if you do not know which cover is
perfect for your car.
Next, you need to shop around. You may get the
occasional discount for being a loyal customer but
look at the bigger picture. Why should you get a
measly 10% off the annual cost when there is an
insurance company offering 40% less what your
current insurer charges you? That’s 40% without
factoring in the discounts you may get. Maybe you
are thinking about the No Claims Bonus you’ve worked
so hard to build, this being your third year of
clean driving. Many companies will transfer your NCB
when you change providers. Remember that this record
goes to your driving record so your new insurer will
recognize it.
Start shopping for quotes at least four months
before the expiry of your current policy. This will
give you enough time to compare quotes from many
different insurers. Shopping for quotes is
incomplete until you have compared all the quotes
you have. When comparing quotes, your focus should
not be on rates alone. Look at the type of cover
given in each quote and whether it is the right one
for your car. Other things to consider are the
payment options available, whether the deductible
amount can be adjusted, extra benefits available for
you and the amount of excess. An internet search
will yield faster results than an offline search.
Use a comparison site to make the search even easier
and faster.
Before signing up for a policy with any insurance
company, dig into their past to check their
credibility and financial standing. Ensure that you
are dealing with a company that is reliable. You may
also be paying a lot of money on an annual cover
when a short term cover would do. If you do not use
your car everyday, opt for a
short term policy. They are available for 1 to
28 day periods.
You may have
bought car insurance for so long now that you have
become a seasoned buyer. But has it ever occurred to
you that you’ve been using the wrong approach when
buying? That is correct. A lot of people go about
acquiring car insurance the wrong way, spending much
more than they really should on a given policy.
Worse, they may end up with the wrong car insurance
policy year after year, and not realize it.
