Cruise your way to better car insurance
A car is a valuable asset and it’s important to make sure that you have the right insurance to protect it. As brokers with several motor vehicle insurers on our panel, we can help you get the right cover in place. We can also help you get to grips with how car insurance works, which is why we’ve put together these six pointers to help you get better car insurance premiums:
Retail versus trade/book value.
This is one of the most important decisions you have to make when looking to insure your car. But what’s the difference? Retail value is the price a dealer would sell your car to a customer for – taking its age, condition and km’s on the clock into consideration – and it includes the markup he would earn on the sale. Trade value however, is the average price a dealer would pay you for your vehicle. He takes the car, adds his mark-up and then sells it on at a retail price higher than the trade value received. So while it’s cheaper to insure a car on its trade value, the retail price is the closest amount you would need to replace your car with something similar should you ever need to.
Still owe on your car?
Insurance is a must-have if you’re currently paying off a car, because if it gets written off or stolen – you still have to pay the balance of what you owe on your car loan.
How much excess?
Excess is part and parcel of insurance and you need to weigh up the odds: Do you pay a smaller monthly premium and a greater excess? Or pay a larger monthly premium and a smaller excess?
Save each year.
While it’s a good idea to insure your car for its retail value, remember that as your car depreciates, so does its retail value. Check in with your broker annually.
Stuck? Need help?
Your broker, in conjunction with your insurer, can arrange for your rescue via one of their assistance service providers. This can be help with changing a tyre or bringing you spare petrol. Find out what extras you’re entitled to.