Insurance Series: You may be paying too much for your vehicle insurance
Vehicles lose value every year, regardless of condition or mileage. You may be paying too much for your vehicle insurance.
Mead & McGrouther and TransUnion HPI, who have consolidated under the Auto Information Solutions division of TransUnion, update and publish used vehicle prices. Dealers, Insurance companies and finance houses all have access to this information.
I recently set out to see if I could save myself some money on my motorcycle insurance. I called up the prospective new insurer to compare quotes, and I got a quote that was R600 less than what I was paying! Why was it so much less?
“I called up the prospective new insurer to compare quotes, and I got a quote that was R600 less than what I was paying!”
I was sceptical at first. R600 less and still a low excess! How is that even possible?
My current insurer had insured me for the purchase price of my motorcycle instead of that of an eight-year-old bike. Did they know that they won’t pay me out that amount and that the bike just isn’t worth the original purchase price anymore?
Both policies were almost identical; at least the features that mattered to me were. The change was simple, and I could self-assess my bike via the app and just take pics of all my documentation and the bike.
“I now pay an insurance premium for the actual value of the item that is insured.”
The cost is only a little time to get a comparative quotation, and you could and probably will end up saving yourself a bunch of money. I recommend that you do the same to see if you are paying too much for your vehicle insurance.
In the coming articles, we will discuss self-insurance and what that means.
Until next time.
Richard from the MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.