Car insurance mistakes that could cost you money

Car insurance mistakes that could cost you money

When it comes to car insurance, there are things you may be doing that could risk your cover and needlessly increase your premiums.

“Car insurance is essentially a grudge purchase,” observes Barend Smit, Marketing Director of MotorHappy, a supplier of motor management solutions and car insurance options. “Every month you’re paying out a sizeable portion of your salary, with nothing to show for it. However, when a problem occurs with your vehicle, you will be thankful that you diligently paid your insurance premium every month.”

It’s reasonable to be looking for ways to slash costs but Smit says be sure to avoid any of these costly car insurance mistakes:

Telling ‘white lies’ on your policy

Not telling the truth on your insurance policy or claim can cause a denial of coverage. If you leave out information or even lie about something, you may be costing yourself much more.

Not doing enough research before taking out cover

The most affordable insurance cover is not always the best, and nor is the first option you find. You should always do some research on different plans as well as a cost analysis, weighing the price and benefits of policies. When considering car insurance, MotorHappy can do the research for you. Simply fill out an online quoting tool or contact MotorHappy directly and MotorHappy will provide you with a selection of quotes from most of South Africa's most trusted insurers.

Skipping over the fine print

You must know exactly what you're covered for, as well as what your excess is likely to be in case you have an accident. In many cases you're not covered for roadside support, rental cars, distress and medical, additional drivers, personal belongings that get lost from the car, and much more.

Not updating your details

Make sure your insurance company has all your updated details because it might impact your insurance premium. “For example, if you install an anti-theft device or park your car in a safer area, your insurance premium might go down,” explains Smit. “Conversely, if you get a new job that requires you to drive your car to carry out your duties, your insurance premiums might go up. Where you park your car during the day or night also has an impact on your premiums.”

Not reporting an accident to the police

You need a case number to have an insurance claim processed. If you’re involved in an accident, get a case number as soon as possible after the incident. “Not only is this important for the claims process, but it’s also important because your memory is fresh after the accident and you will likely give more correct information,” concludes Smit.