Buying your first car is a process characterized by loads of paperwork, difficult decisions and a lot of questions. Many first time buyers are often not aware of the fact that they need to have car insurance before driving their new vehicle off the showroom floor!
The importance of car insurance
If you’re financing your car’s purchase through a financial institution such as a bank, you will have to take out a car insurance policy featuring a sufficient level of cover, as the bank wishes to know that the asset – which stays theirs until you have fully paid it off – is insured sufficiently.
Dial Direct Insurance advises that getting the correct car insurance policy is vital for ensuring a safe car ownership experience. It is very important to realize that you are allowed to select your own insurance company, and that your bank’s recommendation should be treated as a suggestion.
Shop around for car insurance and insurance companies
Making several enquiries and shopping around will ensure that you get the best possible car insurance quote – meaning that your insurance cover, and monthly insurance premiums will both be at optimum levels. Young drivers should be especially thorough in their investigations, as their age counts against them when it comes to insurance premiums and insurance excesses.
What if I buy my car cash?
Cash buyers also need to take out car insurance! Apart from protecting your new (or second-hand) asset, you also need to protect yourself in terms of legal and financial liability, should an accident occur.
Hijackings and theft constitute a very real threat in South Africa. Additionally, as the amount of cars on the road are increasing annually, drivers face a higher risk. As such, getting the correct levels of insurance cover is critical – especially for young car owners.