Tips to become an expert in comprehensive car insurance to help you save time & money
The terms and conditions you need to know to take the wheel on your car insurance policy.
Car insurance is one of the things you want to be clued up about. A portion of your hard-earned money goes towards this necessity once a month, so it’s a bonus to know exactly what’s cracking and how to make the most of your policy.
Sometimes if something is overwhelming and loaded with terms you don’t understand, you rush through and make a quick decision that may not suit your needs.
At Oneplan, we believe wholeheartedly in transparent insurance. That means we cut the jargon, cut the extra words and make it easy for you to understand what you’re getting into.
That’s why in this blog we’re going to unpack the most common car insurance terms that you’re likely to come across. This way you’ll feel more in control of your car insurance, and it’s going to be a smooth ride from here on out.
Third party vs. comprehensive car insurance
Along the way, you’ll hear people talking about either third party insurance or comprehensive car insurance.
Third-party insurance means that when you have an accident and you are liable, insurance will help you cover the damages to the OTHER car involved. It could also help you cover the costs of damaged property or objects. If you’re in an accident and your car is damaged as well, you’ll be responsible for fixing (or replacing) it. People usually opt for third party insurance because it has a cheaper monthly premium, but it has the potential to backfire when you need it the most.
Comprehensive car insurance covers you for the whole bang shoot. This type of cover is usually more expensive but if there’s something we know about comprehensive cover it is this: comprehensive car insurance saves you money. When you have this type of cover, you’re covered for third party insurance and:
- Your own damages
- Fire protection
- Roadside assistance.
Many people make the mistake of thinking that comprehensive car insurance is inaccessible and only for expensive cars, but we make it possible to have comprehensive cover that sticks with your budget and lifestyle. Everybody should be as protected as possible on the road.
Knowing the rules: Limits and exclusions and restriction of use
People get into tricky situations when they don’t know their policy. You end up claiming for something that isn’t covered and suddenly you’re in a tight spot financially.
Your limits will be outlined in your policy and should be discussed with your insurer first-hand.
Insurance limitation is just a way of saying “the maximum amount your insurance will payout”. Knowing the limits on your policy will save you from any surprises when you claim for something that exceeds your limit. For example, if you have R100 000 cover for accidents and the damage sustained on your car reaches R150 000, you’ll be liable to pay the R50 000.
There are some things your insurance won’t pay for, like water or hail damage. And you should make a point of comparing exclusions across the board when you’re shopping for car insurance. They make a big difference to the quality of your insurance policy.
Restrictions of use
Make sure you know when your car is insured, and when it isn’t. If you have a personal car insurance policy, your car won’t be insured for business purposes and vice versa. This could also apply to family members driving your car.
There is an excess fee on any accident claim. Excess serves a few purposes: it helps you make wiser claims. When you know you have an excess fee coming, you’ll ideally avoid petty claims and boost your insurance history. It also helps us (the insurer) to stave off fraudulent claims - frauds don’t usually want to pay for anything.
Excess also lowers your premium because it helps insurers to decrease claim costs.
The way we do excess at Oneplan is simple, and it also happens to save you money. Oneplan clients have the opportunity to adjust their excess depending on what’s going to suit them best. We want our people to have a flexible insurance experience because life changes and so should your car insurance.
You can choose your excess amount, which will directly affect your premium (AKA your monthly payment). You can lower your excess amount which means you won’t be paying as much towards an accident claim, and you’ll pay a higher premium. On the other hand, you could lower your premiums by opting for a higher excess fee, meaning you’ll have time to save money if you do end up having to pay an excess fee.
“Waiving” goodbye to your excess fee
We thought we’d end off with a reminder of our Excess Waiver. When you claim with Oneplan, you can do it straight from your smartphone. The Oneplan App lets you upload photos of the scene of the accident to log your claim.
If you upload photos directly from the scene of the accident, we will waive your standard admin fee of R2000.
Yours in car insurance that’s ALWAYS comprehensive,