It’s not just the purchase price you have to take into account when buying a new car. Your running expenses such as petrol, services and parts as well as motor insurance all add up to your vehicle costs. Ensure you budget properly with these vehicle insurance tips.
Budget for insurance when you buy a new car
When purchasing a new car and financing it, you will have to confirm that your car is insured before driving it off the dealer’s floor. Speak to your broker beforehand so you can add the insurance costs to your budget and to ensure you are adequately covered.
Performance vs Age
When considering buying a car you will need to take into account that insurance companies attribute a high risk factor to regular drivers that are under 25 and drive a high performance car. This means that some insurance companies might not insure you if you fall in this category or your insurance premium might be very high.
Possible Discount
Discuss all your insurance options with your broker to find out how you can save on your insurance premium. After market alarm systems, tracking systems and anti hi-jack systems could save you quite a lot on your monthly car insurance premium by lowering your risk profile.
Take out the right insurance cover
Make sure that your car is insured for the correct class of use. If you simply use your car to travel to and from work then you can take out car insurance for private use but if you use your car to see clients or transport goods you will need to take out business use car insurance. This is due to the fact that your car insurance risk profile increases if you drive and use your car more often.
Regular driver
Always confirm that the driver that drives that car the most is the person that is correctly noted on the policy. If a vehicle’s regular driver was not noted correctly, your claim may be repudiated on the basis that the insurer did not have the opportunity to evaluate and rate the risk. Be honest with your insurer about additional drivers who might drive your car.
Accessories
Always make sure that you specifically add any additional accessories to be covered by your car insurance policy. This includes any accessories that aren’t factory fitted. Your insurer will not cover you for these items if you don’t specifically note them. This includes mag rims, special interior trims, tow bars, window tints and even metallic paint.
Car Inspection
Some insurance companies might require that you take your car to a car inspection centre of their choice to be inspected. Make sure you do this and that you keep a copy of the inspection certificate as this might have an influence on your future car insurance claims.
Know your car insurance terms and conditions
Make sure that you are always familiar with your car insurance terms and conditions so that you know what you are covered for and what not.
In case of an accident
Make sure that you take down all the personal and insurance details from all parties involved in the accident as well as any witnesses. Also make sure that you report it to the police within 24 hours of the accident. This is needed for you to make a valid car insurance claim.