As your car ages, your insurance should be adapted accordingly. If you want to make sure you pay the right premium for your car insurance, make sure it is insured for its correct value.
Here are a few factors that play a role in determining your car insurance premium:
- The make and model of your car: The type of car you buy plays a role in setting the insurance premium.
- Your self-payment portion: Insurers refer to this as the excess. The higher the excess you agree to, the lower your monthly insurance premium tends to be.
- The type of cover you choose: You can choose between several types of cover, depending on your circumstances.
- Your track record: Previous claims, for example the number and scale of accidents that you have been involved in, if any.
Santam offers various options to suit your needs and pocket:
Comprehensive cover
Alternatively, you can opt for comprehensive car insurance that provides cover for accidental loss or damage to your vehicle irrespective of the cause, and includes third party liability.
Limited cover
If you think there’s a risk that you car will be stolen, you can choose to add fire and theft cover to your third party liability cover. You will then be covered for loss or damage to your vehicle, but only as a result of fire, lighting, explosion, hijacking, theft or attempted theft. If the damage is the result of a car accident or hailstorm, you will not be able to claim.
Comprehensive cover
Alternatively, you can opt for comprehensive car insurance that provides cover for accidental loss or damage to your vehicle irrespective of the cause, and includes third party liability. This is the most popular option, as about 80% of the vehicle claims that Santam pays result from vehicle accidents, damage to windscreens or accidental damage to vehicles, for example damage caused by a shopping trolley, hail or flooding.
Basic cover
Third-party liability cover is the most affordable and basic option. It only covers you against damage to third-parties and/or their property that is incurred by using the vehicle. If you drive into your neighbour’s wall or someone’s car, for example, or if you cause injury to another person in a car accident, you will be able to claim. Typically, this option is best suited if your vehicle is old and has a very low market value.
Claims
Choose an insurance company that has a good record of claim pay-outs and efficient service.