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Avoid buyer’s remorse: questions to ask before taking out car insurance

Here’s what to consider when you’re taking out car insurance

Remember to ask the right questions before taking out car insurance.
Remember to ask the right questions before taking out car insurance.
Image: Supplied/MiWay

You might know that sinking feeling after having made an important decision: perhaps you think you should have done things differently? Or maybe you didn’t ask enough questions? Maybe you didn’t shop around enough to get a better price? That’s buyer’s remorse creeping up on you.

You can avoid these blues by doing your research before taking out car insurance. Make sure you are properly informed by asking yourself these important questions first:

What level of car insurance do I want?

These days, car insurance can be much more affordable and better tailored to suit the buyer’s needs. This is why it’s essential that you know exactly what you want and need from your insurer. Comprehensive car insurance covers you from theft, hijackings, damage caused by accidents (or intention), third-party liability, natural disasters and even fires and explosions. If you’re looking for a plan that covers you only in the event of a hijacking, theft or a write-off, certain insurers provide total loss cover, which would be a good option for you. There are other options that may be better suited to your budget, so make sure you consider this before making your final decision.

What is my risk assessment?

Your car insurance premium will be based on many factors, such as your age or how long you’ve had your driver’s licence. Many insurance companies believe that driving risk reduces with age. If you’re under 25 years of age, you will typically pay a higher premium than someone older. Your premium will, however, reduce as you get older and more experienced on the road.

Where is my car parked at night?

If your car is parked on the street at night, the risk of theft is higher and the insurance is therefore more costly. You should, perhaps, also consider more comprehensive cover.

Who will be driving my car?

If a family member will be driving your car regularly or occasionally, your insurer may need to know this, as it could affect the claims process in the event of an accident. Make sure you disclose who the person is who drives the insured car most often to avoid a situation where the insurer disputes your claim based on incorrect information on your policy schedule.

Will I be able to make a claim in the middle of night?

Have you checked whether the insurance company operates over weekends, public holidays or in the middle of the night?

If you are involved in an accident at night and you’ve already reported the incident to the police, the next step is to register your claim. And if you’re unable to get hold of the insurance company, it may cause delays and complicate things.

Remember to ask the right questions before making a decision or reviewing your current insurance, and you’ll be able to avoid those uncomfortable “but I didn’t know” moments. So make the move today, but remember to ask these important questions.

This article was paid for by MiWay.