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2 Essential Tips to Take Note of When Buying Comprehensive Car Insurance

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There’s nothing wrong with the car except that it’s on fire.” – Murray Walker


What do you do when your car bursts into flame, or if you are involved in a vehicle accident? What happens if you are deemed to have caused the accident? How do you repair, or even replace your own car, never mind the other vehicles involved in the crash?

These questions are enough for any responsible car owner to take note of the risks of owning a car and to take preventative action to reduce these risks. How do you go about reducing these risks?

Comprehensive car insurance: protecting you; reducing risk

The good news is that there is a product on the market known as comprehensive car insurance. The benefits of buying Allianz comprehensive car insurance, in summary, are that your insurance broker will protect you from some of the risks of owning a car. According to the Financial Rights Legal Centre, “you pay a premium to your insurance company, in exchange for your insurer protecting you against certain events. By doing so, you transfer some of your own risk to the insurer.”

Now that you understand what the purpose of car insurance is, and before you sign up with the nearest insurer, let’s look at some of the important information that you need to know before you sign on the (virtual) dotted line:

Not all insurance policies are equal

It is important to realise that not all insurance policies offer the same cover. For example, comprehensive insurance offers the best protection under most conditions. The caveat is that a single insurance policy does not cover all the risks involved with owning and driving a car. There are also some conditions that your insurer will not cover such as drink driving and if your car is not roadworthy at the time of the incident.

Be honest when answering the insurer’s questions

Insurers determine your risk profile, i.e. how likely you are to have an accident, by asking your lots of questions. These questions range from how old you are, how many years have you had a valid driver’s licence, has your licence been endorsed or suspended at all, and how many times you have claimed from any insurance company before.

It must be noted that insurance companies employ actuarial scientists to measure and calculate risk profiles for them. For example, historical and statistical data shows that drivers under or over a certain age tend to have more accidents; therefore, if you fall within these two age brackets, your risk profile will be higher.

Insurers mitigate these risks by charging you a higher premium, and buy refusing to cover an accident if they discover that you haven’t provided the correct information. For example, it is easy to determine whether you have a valid driver’s licence at the time of the accident; all they do is ask you to provide a certified copy of your driver’s licence. If you cannot provide this copy, you are in breach of contract, and they are no longer obliged to cover the cost of the accident you wish to claim for.

Final words

Once you have taken cognisance of the above points, then its a good idea to buy Budget Direct comprehensive car insurance at Warranty and Insurance. They always go the extra mile to protect you from the risks involved in motor vehicle ownership.

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