Shop around for your best insurance deal

Bruce Fraser

Bruce Fraser

So you've finally scraped together the money for that new set of wheels you've been dreaming about for ages.

The papers are signed, the car is registered in your name and the roadworthy certificate is in place. This just leaves insurance to take care of.

As much as we hate having to fork out our hard-earned money every month, insurance is necessary.

There are three ways of insuring your car.

If you are buying a vehicle through a dealership and finance is needed, it is compulsory by law to have fully comprehensive insurance.

This means that if you have an accident your car is covered for repairs as well as those of the car you crashed into. This is by far the best type of insurance, but also the most expensive. It will also cover theft, hijacking, fire and acts of nature (hail storms etc).

Also on offer is limited cover. This will cover you for repairs to the car you crashed into, theft, hijacking and fire.

Lastly, third party. If you crash into another vehicle and it is your fault, your insurance will pay for repairs to the car of the person you collided with. This is probably the most economical type of insurance and is the bare necessity for a motorist. Imagine crashing into the latest BMW 7-Series driven by a lawyer and you have no insurance. You will end up paying for the rest of your life.

Always shop around. Premiums normally increase every year, while the value of your car will drop.

A month before your insurance expires, call the competition and play off one against the other till you get the best deal.

You'll be surprised at how much you can save.