It’s Car Insurance Day on 1 February – and it’s time to throw a huge insurance party. Invite your friends. Switch on those desk-top disco lights. Pour a strong coffee. And get down to reviewing your car insurance to make sure you’re properly covered.
And don’t go being a party-pooper, says Wynand van Vuuren, King Price’s partner of client experience.
“Sure, car insurance is one of the great grudge purchases of our time. But, in South Africa, it isn’t a nice-to-have: It’s vital to protect yourself from a range of risks. Car Insurance Day is a great opportunity to review your car insurance to make sure you’re properly covered, and celebrate your proud possession,” says Van Vuuren.
Wait … What? But why do we even need car insurance.
Don’t be that guy!
According to the AA, there are around 12 million registered vehicles on SA’s roads. Of those, only 3 out of every 10 are insured. So, if you’re involved in an accident, you’ve got a 70% chance of the other party not being able to cover any of the damage. “If you’re a responsible car owner, you insure yourself. Simple,” says Van Vuuren.
Should have, could have, would have
Ask yourself: If your car was stolen today, would you be able to replace it? If the answer is no, you should insure your car. Stats SA estimates that 83,000 vehicles were stolen in South Africa in 2018/2019. If you’re financing the car, your lender will require you to have insurance.
Life happens
Someone bumps your car in the parking lot at the mall. You get caught in a heavy hailstorm. A passing truck throws up a stone that shatters your windscreen. You park your car in Centurion in rainy season. If you’re not insured, these could be costly little incidents. Insurance smooths over the worst of the pain, says Van Vuuren.
Okay, okay. We get it. We need car insurance. So how do you make it as quick and painless (and cost-effective) as possible? For a start, choose the cover you want, says Van Vuuren.
• Comprehensive car insurance. As the name suggests, it’s comprehensive. It covers you for accident and hail damage, write-off, theft and hi-jacking, and any damage that you may cause to other cars, property or people in an accident.
• Theft and write-off insurance. This is a fairly new offering: It covers you for the total loss of your car if it’s written-off, stolen or hi-jacked, and not recovered. It also covers any damage incurred during an attempted theft or hi-jacking.
• Third party, fire and theft car insurance. This covers you for the total loss of your car due to fire, theft and hi-jacking. It also covers you for liability to other people and their property as the result of an accident.
• Third party car insurance. This covers you for liability for accidental injury to other people or damage to their property.
• Top up for peace of mind: Here’s what’s on offer: A courtesy car when yours is in for repairs, car warranty for those broken parts, credit shortfalls and music and mag cover. Even though these nice to have top ups come at an additional cost, it’s worth it. Think about it.
“Fact is that your car starts losing value the moment you drive it off the dealership floor. And it doesn't stop. So why keep paying the same every month to cover a car that's worth less every month? King Price offers insurance that decreases monthly as your car loses value. But in the end, you want to choose the insurance that makes the most sense for you,” says Van Vuuren.
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