11 FREQUENTLY ASKED QUESTIONS ABOUT CAR INSURANCE

Young beautiful black woman driver holding car keys driving her new car

UNDERSTANDING COVERAGE;

1.I want to insure my car, what paperwork is needed?
It is very important to have information about your vehicle readily available. The make, model and year of the car to be insured are required. Also you will need to indicate whether your vehicle was purchased or leased. For brand new cars, this is what you need; purchase invoice, registration book, driver’s license and a proposal form. For second hand cars; you need an inspection and valuation report, registration book as well as a driver’s license.

You will also be asked how the car will be used. Is it for business or pleasure? Will you be commuting to work every day and if so, what is the estimated mileage and the distance driven annually?

2.What does auto insurance cover?
At most, you will want to protect against liability risks as well as property risks. You need to protect against other people causing accidents and damaging your car and from the damage you cause to your vehicle or the property of other people. Your policy should offer as much protection as possible in these areas.

Third party motor insurance: In the event you are found at fault in an accident, liability insurance will cover you. It will cover the cost of repairing any goods damaged by an accident as well as paying medical bills from resulting injuries. Liability only covers damages or injuries done to third parties and their property, not to the driver and the driver’s property.

Comprehensive: Comprehensive goes beyond liability to third parties. Comprehensive covers not only damage to the third party but also damage done to your own vehicle. This type of coverage is great to have if it fits your budget as it has the widest full coverage benefits that range from fire, theft, to windscreens.

3.Do you insure imports?
Imports are insured, however, a valuation report needs to be completed prior to going on cover. This can be done at Key Link Loss Adjusters or Edwards Vehicle Claims management.

4.How can I get an insurance discount?
Companies often offer discounts to policyholders who have not had any accidents and who drive fewer kilometers per year than the average motorist for instance. Find out if there is any discount that the company has that you qualify for. For example, with Alpha Direct, you can get a discount if you insure more than one car or you buy more than one type of policy such as car insurance and home insurance.

RATES AND PAYMENTS;

5.What is a premium?
Premium is the money charged by insurance companies for coverage.

6.How is premium calculated?/How much will it cost to insure my car?
The cost of an insurance policy depends on your risk, which in turn reflects the likelihood you will need to make an insurance claim. The higher the probability of a claim, the higher the premium. Such risk factors vary from the value of what you are insuring, age, driving history, residential location, when the driving license was attained and so on.

7.My premium is high, how can I reduce it?
Car safety and security features; Driving a car that has a number of built-in safety features, such as airbags and anti-lock brakes, and security features, like GPS, anti-theft and engine cut-off systems, may qualify you for discounts on your auto insurance premiums. Vehicles with such features are statistically less likely to be stolen or be in an accident as compared to those that do not have such, hence a reduced premium.

8.What is excess?
Excess is the amount of money you have to pay toward repairs before your insurance covers the rest. Generally speaking, the larger the excess, the less a consumer pays in premiums for an insurance policy.

9.What happens if I forget to pay my premium?
For monthly payment plans , a debit order is run. Should the debit order be run and it bounces back, the client will be notified by our friendly accounts team. The debit order will then be run again the following month, should it bounce back three times, the policy will be automatically cancelled.

10.How do I know if I am getting a fair deal?
Prices differ from company to company, so it pays to shop around because you will be in a much better position to compare prices. Because of our sophisticated underwriting systems in Alpha Direct we could save you money by considering your individual risk profile. Premiums are calculated according to a client’s unique risk profile, meaning low-risk clients generally do not subsidize high-risk clients. Therefore, if you have a low-risk profile, you could save 15% or more on your insurance costs.

MAKING POLICY CHANGES;

11.What happens if I cancel my policy before the contract expires?
With Alpha Direct, there is no cancellation fee and you will be refunded the unexpired premium.

Leave a Reply

Your email address will not be published. Required fields are marked *