Let’s take this scenario as an example. Your car was recently written off in an accident and you can’t find something affordable to replace it with. And, because you also didn’t get affordable car insurance that covers your needs, your next set of wheels has to come out of your own pocket.
You end up buying a secondhand car at a steal. Initially, you’re very happy and feel good about having bought a set of wheels at such a good price. You still haven’t thought about getting affordable car insurance that covers your needs though.
Two weeks later disaster strikes. You discover your basement-bargain jalopy was on its last legs and it’s now going to cost you thousands to get back on the road.
Just like buying a car, when it comes to car insurance cheap and affordable are not the same thing. Cheap car insurance comes with risk. Affordable car insurance comes with peace of mind.
It’s quite simple. You pay less, you get less (except for headaches; you’ll get a lot of these with cheap car insurance).
Cover
Cheap premiums, unlike affordable car insurance that covers your needs, will get you cheap (and nasty) cover. Many people only realise this when the proverbial you-know-what hits the fan. You could only be covered for minor incidents, like someone vandalising your car, for example, and not a major accident or theft.
Excess
The excesses on a cheap car insurance policy will probably also come back to bite you. Insurers who offer cut-rate premiums can mostly only do this by pushing the excesses sky-high. It’s great to save on a premium, but can you really afford the huge excesses? Make sure before you sign on the dotted line.
Claiming
Cheap insurers don’t actually like paying out claims. When you need them most you could find the claims process is complicated or your claim can be chucked into file 13 for a petty reason you didn’t even know was in the fine print.
Fine print
There’s often nothing fine about cheap car insurance. You’d be wise to read the fine print though. They often force you to use one of their repair centres, for example, or have other non-negotiable terms and conditions (can you feel a headache coming on again?).
The wisest thing to do when you want to get affordable car insurance that covers your needs is to:
- Stick with a company which is reputable and has a good track record.
- Understand your needs and communicate these to the agent assisting you.
- Ensure you know what you’re getting for the premium you’re paying.
- Be clear about excesses on claims.
- Be clear about the claims process.
- Be clear on the company’s terms and conditions related to your policy.
Finding affordable (not cheap and nasty) car insurance isn’t difficult. Speak to Hollard today.
