When it comes to buying a new car, the first thing on everyone’s mind is getting car insurance. But is this the case for older cars as well? It seems there are mixed sentiments when it comes to car insurance for older vehicles. We take a look at the ins and outs of insuring your used car.
Do I Really Need Insurance?
Let’s cut straight to the chase. It’s a common thought that you don’t have to insure your used car because it’s old. This is actually a misconception.
Think of it this way. Even if your car is falling apart, should that car be involved in accident or get stolen, would you have the cash on hand to buy another car? If you answered no to this question, you definitely need to insure your vehicle. If you answered maybe or even no, you may still want to insure your older vehicle for remuneration purposes.
Let's Talk About Premiums
The thing with a used car is that you probably won't have to pay as much for collision and comprehensive cover. At the same time your liability cover may be just as high as it would be if it were a new car.
Your vehicle's history is also vital to the outcome of your insurance premiums as it can influence the insurer's evaluation of your "riskiness." If you have records of your car's history, bring them up. Advise insurers if the car was ever in an accident, was rebuilt or has had any major repairs done. Your insurer will find this information very important to your overall assessment.
This doesn’t mean that you will definitely get cheaper insurance for your older vehicle. Consider the fact that older car parts may be more difficult to locate because they are no longer in production. When it takes longer to find a replacement part or the part is more costly, the overall cost to repair the vehicle increases. The hassle of finding parts and rising labour fees mean that even as the car gets older, your insurance premium may not decrease.
Trying to Keep Insurance Costs Low
The most obvious tactic is to drive safely. This may be more difficult than it sounds, especially considering the high volume of car accidents on our roads. But driving safely will not only save your life, it will also prevent accidents which can lead to claiming from your insurance, which can then increase your premium.
Driving safely also involves adhering to the speed limit, which helps avoid speeding tickets. Then there’s mileage! A car’s kryptonite is its’ mileage. The higher the mileage, the lower the car’s value. Studies also show that, as you increase the number of miles you drive, you increase your risk for accidents and injuries.
Got any questions about car insurance, how it works and what is covered, call one of our dedicated Compendium brokers on 031 242 6800 or visit us at www.cig.co.za