When you’re doing a car insurance quotes comparison, it’s important to learn about the insurers you’re considering. You don’t want to spend money on a company that isn’t going to be there for you when you need it.

The most important things to find out about your car insurance company are what products they offer, any added benefits, and of course, what they’ll charge you.

The best place to start is to look through their website to find out what they have to offer that is unique to them. For example, at Budget, we offer three options for cars that are paid off and worth less than R100 000, called Budget Lite.  

Doing this will help you to understand car insurance better if you’ve never had cover before, or to see if you’re making the right decision if you want to switch from your current insurer.

With most insurers, you can compare three main car insurance options – comprehensive, third-party, fire, and theft, and third-party only. The one that’s right for you depends on your circumstances. To understand what cover level you need, think about the age and condition of your car, its value, and whether you park it in a safe location. If you drive your car a lot, a comprehensive option might be your best bet. If you leave the house just to go to the shops and back a few times a week, you could consider a third-party, fire, and theft plan rather.

Whichever level of cover you decide on, make sure you read the terms and conditions of each option. Different insurers will offer different maximum amounts they’ll pay out depending on what kind of claim you make.

With almost all businesses operating online these days, you might be wondering if it’s worth your while to buy insurance online or through an insurance broker. 

The right option for you depends on what you need. Each has its own benefits.

The main benefit to buying online is that it can be completed almost instantly. You could either do this directly through an insurer’s website or use a site that gives you the option to compare car insurance quotes with multiple insurers. All it costs is what you’re already paying for data or your internet connection. 

We understand insurance can sometimes be a little complicated. You may feel more comfortable talking to an insurance broker instead. A phone call with someone knowledgeable can help you decide which type of car insurance is right for you. Some brokers work for specific insurers while others will compare car insurance quotes from multiple providers.

If you’re calling an insurance agent, your main costs will be your airtime and the fee a broker usually charges on top of your monthly premium. At first you might think an added fee isn’t worth it, but brokers can provide a valuable service, often well worth that additional amount. If they’re sourcing multiple quotes for you, you might end up paying less every month even with their fee added in.

When comparing car insurance, it might be worth it to compare your home contents and buildings cover too. That’s because bundling multiple products under one policy can often save you a great deal.

At Budget, we’re always looking for ways to make insuring your possessions affordable. That’s why we created our bundles deals. You can get the following discounts when insuring multiple items under one policy:

• Save up to 15% when you insure multiple cars with us.

• Get a 15% discount on your Home Contents Insurance when you bundle Car and Home Insurance.

• Get a 10% discount on Building Cover when combining Building Insurance and Car Insurance.

• Add Cash Back to any of these policies and get 15% cash back after two consecutive, claim-free years. 

So the more you insure, the more you save!

If you’ve already obtained a few quotes and they were higher than you expected, you might be wondering what could cause your premiums to increase. There are a lot of different reasons why your insurance premiums could change, such as:

• Demographics. This is one of the most important factors that determines your insurance premiums. This includes your age, gender, marital status, residential location, and credit history. Using research and statistics, insurers can assess your level of risk, i.e., how likely you are to be in an accident based on these factors. The greater the risk, the higher your premiums.

• The car you drive. More expensive cars usually have a higher premium because they are expensive to repair or replace. Also, high theft risk cars can be more expensive to cover. That’s why it’s a good idea to compare car cover before you buy a new car, so you have an idea of what you’ll pay on the insurance.

• Inflation. Premiums can increase because the price of repairs goes up due to inflation. The cost of parts, labour, and paint increase over time no matter the age of your car. That’s why your insurance premiums will go up every year even though your car’s value depreciates.

• The person who drives regularly. The regular driver’s details are more important than your information (if you’re not the regular driver). Their history of prior accidents, gender, and age will affect the premiums.

• Driving experience. This is where your age can make a difference. Younger drivers are more prone to accidents than older, more experienced drivers. Also, some insurers offer lower premiums if you take an advanced driving course because this is seen as giving you more experience in safe driving.

• Safety and security. Parking in a garage versus parking in the street will make a major difference to your premiums. The safer the car, the less risk there is of you submitting a claim in the future. If you have a car alarm system or tracking device, this could reduce your premium; it’s more affordable to recover your car if it’s stolen than it is for insurers to pay out if you don’t get the car back.

It can be tempting to scan through your quotes and simply pick the one that gave you the cheapest car insurance quote. But often, the cheapest premium has the highest excess. This can cripple you financially if you ever need to claim. 

Even though your budget is the most important consideration, it’s not the only thing you should take into account. You also want a reliable insurer who will support you when you need help. That’s why you should look at the insurers’ benefits too.