The first quarter of 2020 has brought some very unfortunate times for South Africans. From a global pandemic, the novel coronavirus called COVID-19, to one day into lockdown, South Africa’s economy was downgraded to junk status.
No one expected a pandemic to occur in their lifetime, which resulted in 57 million South Africans going into a nationwide lockdown from the 27th March 2020 which was observed globally as well.
At one stage, 3 billion people across the world were under lockdown. But what has this lockdown meant for South Africans financially?
Not only did this bring the South African economy to an extreme halt, it also pushed South Africa into the sub-investment level, Junk Status.
This, unfortunately, means a lot of South Africans will either have a pay cut, retrenchment, or closure of businesses. Now would be a great time to start saving and finding better deals with insurance companies. So how can consumers save on car insurance now when shopping online?
Please seek the advice from a certified financial adviser before you decide to buy any car insurance product.
This article is intended for informational purposes only.
Always do your research
The best way to research car insurance online is to search for a car insurance comparison website.
On these websites, car insurance company websites are accessible via a quick link in Google Search, for example.
You will be able to access all information, including existing client reviews of different insurance companies.
It is also best to communicate with friends and family, if one is not entirely sure, on their experience of their car insurance companies.
Do not shun the smaller car insurance companies, as many of them may have the best deals and excellent service.
When you are looking for the best car insurance, try online car insurance as they usually have good online deals.
It is best to shortlist several reputable car insurance companies’ deals. By doing this, you will be able to compare and find the best deal suited to you and your budget.
Could you improve your risk profile?
The price your car insurance is priced at is dependent on your risk profile. Your personal profile, which is generated by insurers, will determine what level of risk you are, depending on several factors. If you have a low-risk profile, your insurance premium would be lower.
A good example would be where you park your car overnight. Usually, the more secure the car, the lower your insurance premium will be monthly.
Always remember to read the fine print
Even though buying car insurance online is quick and easy, always take time to read the fine print.
Before you sign up, make sure you understand everything. If you are not sure of something, ask your insurance provider to clarify anything as soon as possible.
Choose an insurance provider that suits your budget and needs
Buying car insurance online might be quick, easy and convenient. Make sure to choose the right policy that is going to suit your needs and budget, especially in today’s circumstances and not knowing how long our economy is going to take a build up again.
It could still take up to 8 months before lockdown could be lifted to Level 1.
This is a long time for the South African economy to gain traction. This also means that Junk Status is likely to stay for a very long time.
This article was published in partnership with Prime Meridian.