Don’t just ditch and switch. Ask yourself these questions before changing insurers
To figure out if it is the right time to switch providers, here are four questions worth asking yourself.
01/05/2024
pexels.com - taras makarenko
Car insurance is more than a price
tag. While many of us are tempted to chase low
prices by hopping from company to company when
annual increases happen, there is a good
argument to be made for the power of patience.
“This feeling is understandable because we
all love the idea of paying less,” says MiWay
Blink Head Keletso Mpisane. “But we should be
thinking about car insurance as a relationship
and with any relationship, trust and familiarity
takes time to build.”
To figure out if it
is the right time to switch providers, here are
four questions worth asking yourself.
Have you done all your research about other insurers?
When it comes to insurance, the
fine print matters. Have you taken enough time
to familiarise yourself with what other
companies are offering?
“Just because
they are offering a lower premium, does not mean
they have your best interest at heart,” says
Mpisane. She points out that when you get a
quote there are additional factors to consider.
In the event that you need to claim how much
excess will you pay compared to your current
provider? Is the excess fixed or is it a
percentage of the value of the claim? Are you
getting free emergency assistance when you need
it and are there any exclusions to the cover?
“You should get lots of quotes, but it is important to compare apples with apples when it comes to insurance.”
Review platforms or comments on the company’s social media pages are great places to assess the quality of its customer service, or its track record with paying claims.
Can you negotiate with your current provider?
Sometimes we feel pushed to make a change
because we have fallen on hard times. Between
rising fuel costs, car and home instalments and
emergencies, it is understandable that people
are on the lookout for saving in the short-term.
Before you switch, go over your current
policy and get in touch with your insurer to
find out about potential discounts.
“When
you get in touch, you want to ask what factors
contribute to your premium,” says Mpisane.
“Should you have gone more years with a good
driving record since your policy started, your
insurer might be willing to offer you a lower
rate.”
“Speaking to your insurer is the
best way to be sure if you really need to
change,” she adds.
Should you switch but
want to change back after a month, you might not
get the same deal.
Have you considered what you get with your cover?
Do you know
what kind of insurance you have and what it
means? What are your non-negotiables when it
comes to car cover? Knowledge is power in these
cases.
Generally, you get comprehensive
cover, which is the best insurance level as it
covers damage to your vehicle, other cars, fire
or natural disasters and theft or hijacking.
Third party, fire and theft cover may be
cheaper,here you are covered for what happens to
other cars and get protection for somethings
that may happen to your car. Then you get
third-party cover which is cheaper but will only
cover damage to other cars if you are involved
in an incident.
“Being clear on what you
are currently covered for can save you from
headaches,” says the MiWay Blink head. “If there
are perks or rewards you have worked towards for
years, you should consider if they are worth
letting go of.”
Will the change bring peace of mind?
Changing insurers is not a
bad thing,it can come with better rates and
better service depending on your preferences.
However, there are times where it might be the
wrong choice for you, and the pain of a bad
decision can end up costing you more in the long
run.
In conclusion Mpisane’s advice is
to, “always go with an insurer who gives you
peace of mind and leaves you feeling like a
valued customer.”