Car Insurers - Direct or Broker
Does anyone have any idea how much I would pay for car insurance? Even a rough estimate will do.
I'm 19, have a full time job, and the vehicle will be a VW Combi, probably somewhere between a 1980 to 1995 model.
If you are comfortable with the idea of going direct, know your way around contracts and policy wording, and think you can handle proceedings with the direct insurer were you unfortunate enough to have a claim, then Google car insurance quotes in South Africa ... or click
here ... plenty of 'em to choose from. But remember it isn't always a bed of roses.
The alternative is to make contact with a local insurance broker who can give you at least 3 to 4 quotes from reputable insurance companies. The insurance broker takes the hassle out of running around looking for quotes and should have the expertise to handle claims on your behalf, and ensure that you're not ripped off.
Important - make sure they are registered/affiliated to the Financial Intermediaries Association of Southern Africa (
http://www.fia.org.za/), as they have a strict code of conduct for their members.
Another cautionary about brokers, is that some of them will want to charge you a broker fee on top of the commission they automatically earn from the company. So check that out before accepting a quote.
As to what you should be paying, that will vary considerably from company to the next. If you have household contents to insure with the vehicle, it usually has the effect of reducing the price.
Paying annually if you can should reduce debit order charges.
Each claim free year of driving you can prove will reduce the premium further.
You can elect to take a voluntary excess over and above the compulsory excess, as this too will reduce your premiums, but make sure you have the liquidity to go this route.
Most companies offer restricted covers for car insurance, that is, third party fire and theft or third party only. Restricted covers are cheaper than comprehensive insurance, but don't give you full cover and peace of mind. 85% - 90% of all claims incurred with most car insurers results from accidents (and not theft or hijacking), so be careful if you speculate and opt for a restricted cover. Accidents usually involve claims from third parties for property damage.
The value of the vehicle will influence the price. Make sure your value is correct (another reason why I'd prefer the broker route, as they can guide you here). Most companies work on retail value (as opposed to market value). Don't forget to include extras and accessories in the value. Mileage and condition are also big influencers on value.
Lots to think about, but that's what insurance brokers are paid to do on your behalf.
Nothing stopping you from shopping around, though, and comparing prices.
PM if you have any other questions. All the best!
