Cheaper isn’t better when it comes to car insurance...
When it comes to vehicle insurance, the cheaper cover does not mean better (trust us, we know)...
Did you know that there are over 11 million registered vehicles on our SA roads, and according to the statistics, as many as 60 to 70% of these vehicles are uninsured?
This means that car insurance is, in fact, a necessity and NOT a luxury.
According to research from the RTMC (Road Traffic Management Corporation), there are more than 800 000 car accidents in South Africa every year.
This means that around 500 000 cars are involved in these accidents and DO NOT have insurance.
The problem is that so many drivers who have car insurance, often choose the cheapest option and do not understand what they are covered for and more importantly, what they are NOT covered for.
It can sometimes be tricky to get insurance that matches your budget and we get that! But if you are choosing the cheapest car insurance policy to try and save money, this could actually end up costing you more in the event of an accident or claim and here’s why…
Why cheap car insurance can cost you more in the long run
When it costs less, your cover is less
A quick Google search will give you the results of a number of car insurance offers that advertise for being cheap, affordable and an all-around bargain!
But the thing is…
These insurers do not think their customers will read their insurance policies. The fine print of these legal documents will clearly state that your cover is limited for such a low cost for your premium. This simply means that…
Less cost = less cover.
It’s as simple as that.
You are then left thinking you are covered and when it comes time to claim you end up having to put in a whole heap of money and your insurer only covers a very small amount.
A lower premium often means a higher excess
Your excess is the amount of money you have to pay in when it comes time to claim. In other words, your insurer will pay a certain amount for a claim and you have to pay in the remainder.
This means that while you are thinking you are saving money in having a low monthly premium, in the event of an accident, you could end up having to pay in R10 000 or more in order for your damage to be covered.
Which leaves you with the question of “is it really worth it?”
The fine print
When a price seems too good to be true, it’s because it probably is.
Some cheap car insurance policies keep their costs low by including some non-debatable terms in the fine print of their contracts.
This means that there are a number of terms and conditions you have to meet in order to have proper cover and often in the event of an accident, you might not get cover due to something you missed in your contract.
Third party only
There are some insurance policies who only cover the damages of another vehicle involved in an accident, which means that you are responsible for covering the costs of damage done to your own car.
This is known as third party car insurance and it is a great option in terms of affordability. But just be warned that you are not covered for any damage to your own car, these costs are your problem.
How to find affordable and trustworthy car insurance
If you are looking for car insurance that is affordable then we have got your back. Not only is our car insurance at Oneplan affordable, it is also comprehensive - this is one of the higher levels of protection you can get for your car (which is pretty awesome).
Comprehensive means you are covered for damage to your own car and the car of another driver if the accident was your fault.
The best thing about our vehicle insurance is that you can tailor it to suit your budget.
It’s as simple as using a sliding scale where you can select the exact percentage of cover you want and can afford. We then work out how much your premium will be based on this. It’s that easy.
Another benefit is that we don’t believe in boring you with the legal lingo of big words where you are left searching for the dictionary in hopes of understanding your policy. That’s just ridiculous. Which is why we make sure you not only read but understand every document we send to you.
Yours in uncomplicated car insurance,