Before You Downgrade Your Comprehensive Car Insurance, Read This (3 Questions To Ask Yourself)
If you are the owner of comprehensive car insurance, then you may sometimes feel the urge to downgrade your plan to something a little more affordable. But before you decide to drop your plan, make sure you ask these 4 critical questions first…
If you are someone who never claims, you might be considering downgrading your comprehensive car insurance plan. But the thing is, you never know when something might go wrong. You can’t predict when an accident might happen, but you can prepare for when it does.
What is comprehensive car insurance?
Comprehensive car insurance is the highest level of protection you can get. This form of insurance protects you against a majority of events and provides more cover than any other type of insurance.
Here’s what makes this kind of car insurance so awesome:
- You are covered if you are responsible for the damage to someone else’s car or their property
- You are covered for the damage costs to your own car
- You are covered in the event of theft
- You are covered in the event of a flood, storm or fire
Oneplan Car Insurance is ALWAYS comprehensive
Although, with Oneplan, our vehicle insurance is ALWAYS comprehensive.
You have total control over the amount of cover you want, based on how much you can afford.
How we do this is using a sliding scale.
Basically, you select the percentage of insurance you can afford, selecting cover from 30% to 95% and we work out what your monthly premium will be based on this percentage. It’s that simple.
So, when money is a little tight for the month, then you can adjust your premium to suit your budget.
Have a look at our Easy Guide To Insurance You Can Tailor To Your Budget to find out more.
Here's a simple guide on how to easily validate your car with Oneplan.
3 questions to ask before you downgrade
1. What is the value of my car?
Although your car’s value is depreciating each year, the fact of the matter remains…
The sum of your monthly premiums and your excess will far outweigh the value of your car.
This means that it is still in your best interests to stick with your comprehensive car insurance.
Especially if your answer to the next question is “no”.
2. Can I afford to replace my car or not have a car?
If you are thinking about getting a more affordable car insurance plan such as third party cover only, then ask yourself this…
If something had to happen to your car today and it was stolen or damaged and deemed a write off, do you have the cash (right now) to buy a similar car? And if not, can you afford to live without a car?
The thing is, if you don’t have that kind of cash lying around and rely on your car to get you to work every day, then dropping your comprehensive car insurance is not really an option.
If you were involved in an accident or someone stole your car, then the funds to fix it or buy a new one would come out of your own pocket if you don’t have insurance.
3. Do I owe any money on my car?
Have you financed your car? If so, then you might not be allowed to drop your comprehensive car insurance. Your car loan provider may have stipulated that you HAVE to have comprehensive car cover.
Even if this is not the case, if you drop your comprehensive car insurance and have an expensive car loan to pay off, then this is not exactly a smart move. The reason being is that if you were involved in an accident, then you would have to pay for the damages and continue to pay off your loan.
Clever ways to save money on car insurance
So, long story short, it’s a good idea to stick with your comprehensive car insurance. Even if you haven’t claimed in years, you never know when something might go wrong. Every time you get behind the wheel, you are taking a risk.
Here are some smart ways to save money on your car insurance:
- Make sure your policy information is up to date - If you have recently moved or upgraded your car or installed a tracking device, then make sure you let your insurer know. Also be sure to let your insurer know if you are driving your car less, the less time you spend on the roads, the lower your premium.
- Live in a safer area - Certain areas have higher crime rates, the safer your area the lower your risk, which means your premium will be lower too.
- Keep your car in a locked garage at night - The better your security, the lower your premium.
If you have any questions and want to switch to Oneplan, then you can sign up online right now or chat to one of our friendly team members.
Yours in uncomplicated car insurance,