5 Questions most people are nervous to ask about their car insurance
And why you absolutely should be asking them!
Car insurance sucks when you don’t know what it’s all about. You don’t understand why you need to pay every month, or what you’re covered for and why it’s important. The better you understand car insurance, the more you respect why you need to make it a budget priority.
So to help you take the wheel on your car insurance, we thought we’d clear up some questions you may have had before.
1. Why do I even need it?
Because you do. Jokes, we know that isn’t good enough. A car isn’t necessarily a valuable item. A truly valuable item increases in value - a car doesn’t. It depreciates the moment you start driving it. But, that doesn’t mean you don’t need to take care of it. In fact, it's the reason to take even more care of it by protecting it with car insurance.
That’s not even the most important reason. South Africa has one of the highest numbers of road fatalities worldwide. Every year, road deaths average 14 000 and are among the highest in the world.
The AA describes this as a “national health crisis”. Even if you don’t get into a life-threatening collision, the cost of damage can be huge. Which can either leave you in debt or without a car. Car insurance helps you out of these kinds of holes. That’s why you need it.
2. Shouldn’t I just go for third-party insurance?
You could, but it won’t save you money in the way you’re thinking it will. The monthly payments are cheaper but the payout is minimal. With third-party insurance, YOUR car isn’t the one that’s covered. Maybe you ding someone's car, third party insurance will cover repair to their vehicle, not yours. The same goes for a bigger collision.
We would advise going comprehensive. That means you’re covered for it all (within your policy outlines, of course). Comprehensive cover includes third-party cover, meaning both cars are taken care of. It’s not only accidents you’re covered for: you can claim for things like theft, hijacking, fires and water damage.
3. What happens if I can’t pay my premiums?
We don’t have to tell you how quickly life can change. You could be as prepared for the financial commitment of car insurance as you can be, but you never know what’s around the corner.
In most circumstances, your car insurance policy will be cancelled. This will vary from insurer to insurer. We like to think we make it easier for Oneplan members to manage their money by controlling their excess. That means if you see a tight few months head, you can lower your monthly premiums by making your excess higher. You can do the same the other way around: if you want a lower excess amount, you can make your premiums slightly higher.
Read more about cover you can control by choosing your excess.
4. What happens if I lie to my insurer?
We could see why you’d be nervous to ask this one.
Nothing good comes from lying to your insurer. It is a waste of resources, a waste of time and last but not least, fraudulent.
Your insurer has the right to cancel your policy on the grounds of a false claim and this will be presented for any future insurance applications. And you know what high-risk applications do to insurance premiums: they immediately become more expensive.
Discover: what happens if I lie on my insurance policy?
5. How easy is it to cancel my policy?
With us, cancelling your policy is super easy. But we’re only telling you that for transparency's sake - we wouldn’t advise that you do.
If you want to cancel your policy, go for it. But remember what follows: you will be driving on the roads uninsured, which is not the smartest way to save money. A cancelled policy also follows you on your insurance history, which means that other insurers will see a gap in your coverage and flag you as a higher-risk applicant.
Instead, why not pause your cover? All you have to do is log into the app, and pause your cover with the click of a button. And when you’re ready, you can pick up right where you started with zero paperwork and zero hassle.
Find out more: Why now is not the time to bail on your insurance plan
Yours in comprehensive car insurance,