Fincheck recently launched a fresh vehicle insurance comparison page to help South Africans make better financial decisions when it comes to choosing a vehicle insurance partner. To help you make the most of your choice, we're going to talk about vehicle insurance and help you understand the vitals of this lifestyle product.
In this third post, we look at what you need to obtain vehicle insurance and some helpful tips on choosing a vehicle insurance partner.
- You can recap on the basics of vehicle insurance here
- Check if you really need vehicle insurance by reading this.
Remember, if you're considering vehicle insurance, we can help you responsibly compare options on our vehicle insurance apply & compare page!
What you need to get vehicle insurance in South Africa
There are few things worse than pitching at a place where you need to take care of a lot of admin and you don't have what you need with you. Everyone knows that sinking feeling when you have to walk away empty-handed from the traffic department, SARS or home affairs! Make sure you have the documents below before you tackle your vehicle insurance application:
- Basic identity documents.
- Necessary banking documents, such as three-month bank statements
- Take note that when applying for insurance, the insurer will run a credit check
- All details relating to your car, such is as make, model number and year of registration
- Information relating to the factors mentioned above, such as location, security measures and the age of registered drivers
How can funds from a car insurance pay-out be used?
Before we go through some helpful tips in choosing a vehicle insurance partner, let's first look at how the funds are used when you claim from your vehicle insurance.
Your insurer will only pay out an amount they deem as reasonable once the cost of damage or replacement of your vehicle has been determined. The insurer will sometimes pay the garage or mechanic directly and, therefore, you will not have access to the funds. In the case of a vehicle being written off or having to be replaced, or repairs being paid personally, the insurer will pay the reasonable amount directly to you as compensation for this loss. These funds are usually determined by the value of the car when you insured it and taking into account the depreciation value at the time of payout.
Once received, these funds can then be applied as you deem fit. It is not required that you buy another car with these funds for example. It is important to remember to first submit the quote given by your mechanic or garage to the insurer for approval before continuing with repairs, to make sure what the amount is that they will be willing to pay and that they deem to be reasonable.
Helpful Tips for choosing the best vehicle insurance for your needs
1. Know what you get
Before choosing an insurer, read the complete policy, make sure you understand all the terminology, terms and conditions and what is excluded from their specific cover.
2. Provide accurate information
Make sure the information you provide the insurer is accurate. Your policy, premium and what you get from your insurer is based on the personal information you provide to them. If this personal information is wrong (even the slightest bit) you will not receive an accurate quote. You might end up paying an unnecessarily expensive premium and in the case of a claim, if the information was inaccurate, the insurer is not required to uphold their end of the deal. And to add fuel to a fire, they could even institute a claim against you.
3. Make sure you compare quotes from all relevant insurers
Insurance providers such as Santam, Outsurance and Discovery are well known, but there are various other insurers that might be better suited for your specific needs and that can provide you with a better premium. Using the FinCheck comparative tool will enable you to properly compare all possible insurance quotes to make sure you get the best deal.
4. Insurance Cash Backs & Perks
Certain insurers offer you certain perks, a bonus, or a cash back option if you do not submit a car insurance claim for a certain period of time. Although this might be enticing, make sure you compare all the pros and cons of the specific insurer to make a decision on all relevant information and factors.
We know the options for vehicle insurance is vast and each person’s situation is different. So, we want to help you make the right choice. If you are looking for a vehicle insurance partner, we encourage you to make use of our vehicle insurance comparison page to apply & then compare the different partners and their basic options.
To your better financial future!