Keep an eye on your car insurance to avoid unexpected surprises

Many people regard their cars as prized possessions, but often cut corners to save on costs when it comes to taking out insurance – something that could prove vastly more expensive than anticipated in the event of a claim.
“It is common in these tough times, when budgets are stretched by increases in petrol prices, food inflation and even the cost of vehicles themselves, that people will look for ways to cut their monthly costs,” says Des Fenner, General Manager of Datsun South Africa.
“To some, car insur­ance is the easiest place to reduce costs. Unfortunately, some make decisions that could end up being detrimental to the point where they make future motoring very difficult to impossible in the event that an accident does occur.
“When you consider that about one in every five motorists will have an accident, the most risky decision to take is to ratchet up your excess payment in the belief that you will score with lower monthly insurance premiums.
“If you do have an accident, the unscheduled financial cost of the high excess could upset your household budget for months. Ultimately, the cost could be so high that you lose your transport, because you are unable to afford the repairs to your car.”

Responsible drivers should consider several options before loading their excesses including:­
• Discussing the various premium and excess options with the insurer to find the best one for you;
• Shopping around for cheaper rates;
• Reducing your expectations when it comes to your vehicle - it is easier to reduce luxury specifications on your car to buy within a more accessible price range and rather save on costs this way; and
• Understanding the total cost of ownership when purchasing a car - doing your homework to determine what additional costs you will need to pay, includ­ing maintenance, insurance and other costs.
Other factors that will impact on your insurance and excess costs are:
• Your age. The younger you are, the less driving experience you have and the higher your insurance premium and excess will be;
• A more expensive car will cause premiums and excesses to be higher; and
• The area in which you live in also determines the premium you will pay. Living in a quiet rural area and not visiting towns will reduce premiums. Living in the city increases the possibility of accidents and so increases insurance­ costs.
“People buying cars should therefore do their homework before purchas­ing.
The total cost should cover all ownership costs,” suggests Fenner. “If you are aged between 18 and 30, looking at schemes, such as the Datsun Allin1GO, could tick all the boxes for you.”
The plan offered by Datsun is the best offer in the market for first time car buyers that provides buyers of A-segment vehicles several advantages.

These are:
• 0% deposit is required to join the plan
• The agreement can extend for a period of up to 72 months (six years)
• Includes fully comprehensive insurance as part of the single payment package
• Includes vehicle servicing costs – every 15 000 km or 6 years
• A vehicle tracking device is installed in the vehicle
• A 35% guaranteed buy-back option tied to a 90 000 km limit
• A 24-hour a day, 365-days-a-year road­side assistance plan is part of the offer
• An option to upgrade to another model after 36 months
“The Datsun Allin1GO plan offers added value to people who wish to travel in a fashionable, new car, but also want to peg the cost of ownership and service costs, while avoid­ing high insurance expenses. The major advantage is that everything is covered with one simple payment a month.
“For motorists facing significant cost increases during 2016, the Datsun Allin1GO plan could be the answer they have been looking for,” concludes Fenner.
– Words and image Motorpress.co.za