It was found in 2013, that 65% of vehicle owners do not have insurance. What can the reason be? According to Carinfo.co.za, there are 6 car insurance myths that one must not believe.

1. I don’t need/can’t afford car insurance

It does not matter if you’re a great driver, accidents can still happen. For this reason, it is advisable to have car insurance. Shop around for car insurance and you might be surprised. Chances are that you can afford car insurance and you do need insurance.

2. I have to wait for my old insurance to expire

False. Nothing prohibits you from changing to another car insurance company. There may be a cancellation fee which in most cases is quite low.

3. Your car insurance will not pay your auto loan if your car is destroyed

Sorry, this is not going to happen. Your insurance is based on how much your car is worth at the moment of the accident, whilst an auto loan is based on your car’s worth at the time of purchase.

4. In case of a break-in, the insurance will cover everything in my car

Your insurance company will only pay for stolen items that are physically attached to your car like the radio. If you want to insure carry things like computers, luggage, cameras etc that may be in your vehicle, you will need Person Effects Insurance.

5. If my friend crashes my car, I won’t get paid

This will only apply if you have specified someone who cannot drive your car. If you have comprehensive or collision insurance, the insurance company will pay for damages, regardless of who the driver is.

6. “Is it because I’m a woman?”

It is true that your age, gender, experience and car model do affect the amount you have to pay monthly for car insurance, one has to remember that this is based on statistics.

“It has been proven that younger drivers are statistically more likely to have accidents and therefore they generally pay higher premiums,” according to Carinfo.co.za.

The only way to get around this is to be a safe driver. You may get premium discount for having a clean driving record. You can also consider installing a telematics device in your car to cut on premium costs.

It was found in 2013, that 65% of vehicle owners do not have insurance. What can the reason be? According to Carinfo.co.za, there are 6 car insurance myths that one must not believe.

1. I don’t need/can’t afford car insurance

It does not matter if you’re a great driver, accidents can still happen. For this reason, it is advisable to have car insurance. Shop around for car insurance and you might be surprised. Chances are that you can afford car insurance and you do need insurance.

2. I have to wait for my old insurance to expire

False. Nothing prohibits you from changing to another car insurance company. There may be a cancellation fee which in most cases is quite low.

3. Your car insurance will not pay your auto loan if your car is destroyed

Sorry, this is not going to happen. Your insurance is based on how much your car is worth at the moment of the accident, whilst an auto loan is based on your car’s worth at the time of purchase.

4. In case of a break-in, the insurance will cover everything in my car

Your insurance company will only pay for stolen items that are physically attached to your car like the radio. If you want to insure carry things like computers, luggage, cameras etc that may be in your vehicle, you will need Person Effects Insurance.

5. If my friend crashes my car, I won’t get paid

This will only apply if you have specified someone who cannot drive your car. If you have comprehensive or collision insurance, the insurance company will pay for damages, regardless of who the driver is.

6. “Is it because I’m a woman?”

It is true that your age, gender, experience and car model do affect the amount you have to pay monthly for car insurance, one has to remember that this is based on statistics.

“It has been proven that younger drivers are statistically more likely to have accidents and therefore they generally pay higher premiums,” according to Carinfo.co.za.

The only way to get around this is to be a safe driver. You may get premium discount for having a clean driving record. You can also consider installing a telematics device in your car to cut on premium costs.

Factors determining your car insurance rate
December 14, 2015

6 Car Insurance myths busted

It was found in 2013, that 65% of vehicle owners do not have insurance. What can the reason be? According to Carinfo.co.za, there are 6 car insurance myths that one must not believe.

1. I don’t need/can’t afford car insurance

It does not matter if you’re a great driver, accidents can still happen. For this reason, it is advisable to have car insurance. Shop around for car insurance and you might be surprised. Chances are that you can afford car insurance and you do need insurance.

2. I have to wait for my old insurance to expire

False. Nothing prohibits you from changing to another car insurance company. There may be a cancellation fee which in most cases is quite low.

3. Your car insurance will not pay your auto loan if your car is destroyed

Sorry, this is not going to happen. Your insurance is based on how much your car is worth at the moment of the accident, whilst an auto loan is based on your car’s worth at the time of purchase.

4. In case of a break-in, the insurance will cover everything in my car

Your insurance company will only pay for stolen items that are physically attached to your car like the radio. If you want to insure carry things like computers, luggage, cameras etc that may be in your vehicle, you will need Person Effects Insurance.

5. If my friend crashes my car, I won’t get paid

This will only apply if you have specified someone who cannot drive your car. If you have comprehensive or collision insurance, the insurance company will pay for damages, regardless of who the driver is.

6. “Is it because I’m a woman?”

It is true that your age, gender, experience and car model do affect the amount you have to pay monthly for car insurance, one has to remember that this is based on statistics.

“It has been proven that younger drivers are statistically more likely to have accidents and therefore they generally pay higher premiums,” according to Carinfo.co.za.

The only way to get around this is to be a safe driver. You may get premium discount for having a clean driving record. You can also consider installing a telematics device in your car to cut on premium costs.

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