10 things I still don’t know about car insurance, and I’m hoping to change soon

I’m shopping for car insurance. My policy is up for renewal, and I’m dreading the price increase – it’s like a lucky packet – you never know what you’ll get! Hubby and I are also car shopping for him, so I’m keeping my options open.

Damn, cars are expensive
I can’t believe it. My car is five years old. It feels like I drove it out of the dealership just the other day! I’m paying my last car installment this month. As much of a relief as this is, hubby and I are considering buying him a new(er) car, as his has over 200 000km on the clock! It’s time.

I’ve been browsing cars, but I’m shocked at how expensive they’ve become. I’ve been using some of the online car finance calculators to calculate repayments and see what’s affordable. Because, on top of the premium, you need car insurance, too. And I think people tend to forget about that teeny tiny fact.

Shopping for car insurance is challenging
I’ve been paying insurance premiums for the last nine years, not exactly knowing what I’m paying for. And I’m sure I’m not alone. The paperwork is tedious, and I never fully understand what’s covered and what’s not. No salesperson has ever been able to answer all my questions, and I’m always referred to the policy document – which is filled with tons of jargon and small print.

My current insurance policy is a year-old next month, and I’m dreading the premium increase. You never know what it’ll be, and what it’s based on. The last time, my premium went up because my car is getting older. But logic says it should become cheaper? But, Insurance companies view older cars as higher-risk due to wear and tear. They are more likely to break down, develop issues or need parts replaced. Nobody tells you this.

So, I’m on the lookout for better premiums, lower excess, and good service (not in that particular order). My dad always said, “Penny wise and pound foolish” so obviously I’m not purely looking for the cheapest car insurance available, but I need to be sure that a claim, if I ever have one (touch wood), will be paid with no ifs, ands or buts.

The jargon, oh the jargon. Do you know how your policies work?
Because I don’t. Here are 10 things I still don’t know about car insurance:

  1. What is covered in a comprehensive policy?
  2. What isn’t covered in a comprehensive policy? (E.g. engines and stuff, are they covered?)
  3. Can I insure more than one car on one policy?
  4. What happens if I’m in an accident and I’m still paying my car off? (And if the car is written off, and I’m still paying it off, what happens?)
  5. If someone drives into me, who pays?
  6. The person who drove into me doesn’t have insurance, what now?
  7. What happens if I drive into something, like a pole?
  8. Why do premiums increase when you claim? (I’ve been paying for a service and haven’t used it up to that point, right? So why pay more after?)
  9. Why do premiums keep increasing even though my car’s value is decreasing? (I know King Prices insurance decrease monthly, and the compound savings look promising)
  10. How do claims work? (What do you need? Who do you call? (If you say Ghostbusters, I’ll punch you!) What else is needed from me to process my claim? A checklist would be nice…)

As you can tell, I’ve never had a car-related claim on my insurance policy, and I’m hoping it
stays that way, but you never know. I’m also hoping I can find out the answers to my 10 questions while I’m looking around online for better insurance cover and premium costs.

** Disclosure: This is a sponsored post, paid for by King Insurance. I am, however, shopping for car insurance. **

Leave a Reply

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