You may be deciding to change car insurers for whatever reason but it is important to consider the consequences of your action before you switch or cancel your current cover. The reality is that South African consumers are constantly bombarded with television and print ads, telesales calls and convincing brokers who always seem to have a better deal that the car insurance cover you already have. Before you change your car insurer, ensure that the next deal is better than the one you are getting or you may be sorely disappointed with your new insurer.
Stick with the insurer you know
Sometimes it is best to stick with the insurer you know than switch over to a company who you have never heard of before, even if they seem to be offering the best deal. Before changing your car insurance policy, it is best that you speak to your current insurer and see if they will match the offer you have been made for a new car insurance policy. It is often better to stick your current insurer with whom you have a long history and receive the benefits of your loyalty rather than jumping ship to save a few bucks.
However, on the other hand the market has become so competitive than some insurers are prepared to go the extra mile to acquire new clients. This can mean more savings on your car insurance if you cash in on the competition among insurers. Speak to your short term insurance broker before you make a decision to change car insurers. You may not be aware of the pitfalls of dealing with another insurer which your broker will be aware of as they are experts in the industry.
Switching between short term insurance brokers
There are a handful of car insurance companies in South Africa but practically thousands of short term insurance brokers out there. Make sure that you understand the difference between changing car insurers and changing car insurance brokers. There is a difference. While most insurers try to provide about the same level of service, the same cannot be said of brokers. You need a broker who is constantly looking after your needs and will assist you at the time of a claim, rather than disappearing at the time you need them the most.
As with any industry there are the agents who offer quality service and those who are just there to make the commission and never be bothered about the client. It is best to switch to a short term insurance broker who can offer you the level of service you would demand from your car insurance cover. The best broker is one with whom you are comfortable, who has a reputable history in the industry and is trying to secure you the best cover for the most affordable rates. That broker may actually be the one you are currently with but if you do not feel that you are getting the service you expect, then look at other short term insurance brokers, preferably within your area.
When to change car insurance policies
So when should you decide to change your car insurance policy? Well, there is a difference between changing your level of cover and changing your insurer. Remember that most car insurers will offer you pretty much the same level of cover for the same price. It is a matter of common sense. If a single car insurer really did offer more benefits for a lower price then they would be the only car insurer in existence within the South African market. But this is not to say that sometimes you can score on a small discount with a new car insurer who desperately wants your business.
Before you change your car insurance policy, make sure that you understand the difference in benefits between your old policy and new policy if you are opting for a new level of cover. All car insurers have similar options – comprehensive car insurance which is the highest level of cover and third party car insurance which offers what can be seen as the bare minimum cover. Sometimes another car insurer may be offering you what seems like the same level of cover for a better price, but look at the details carefully. You may be insured for a lower amount than your previous policy or lose out on all the additional benefits with your old car insurer which is why you saved on your new policy.