Having Insurance on your vehicle is important. This goes for any type of vehicle you own, whether it’s a brand new car that you have just bought, a car that you own outright, a used car, or a certified pre-owned car. The National Treasury has said that the insured value of motor vehicles is to be reduced in line with their market value. This new change will naturally affect the insurance premiums on used cars significantly, which will allow all vehicle owners affordable car insurance. Kayser Ford and I have partnered to bring you information on why it’s important to still have insurance on your used car.
Rising Costs of Vehicle Premiums: For years, many insurance companies didn’t take into consideration the reduced market price for a vehicle, until it came time to pay for a claim. Needless to say, this became a huge frustration for second hand car owners. This meant that they would have to pay a higher premium but wouldn’t benefit from it when a claim was processed.
However, no car owner can afford to go without insurance, so second-hand car owners should carefully consider their options and choose an insurer that works with them to allow for fair premiums and a reasonable payout based on the current value of the car. There are many insurance companies now that take into consideration the year, make, model, and any extras the car may have and offer you discounts.
Reduced Premiums and Staying Insured: The reason why motor vehicle premiums continue to rise even when market values are reduced, is the rising cost of repairs. As you know, car repairs can be quite costly to do, as parts and services are both expensive. For example, many motor vehicle companies insist that warranties will be valid only if you use their branded car spares for repairs – and in many instances, you are only permitted to use their designated repair shops for carrying out repairs. These are all things that can significantly increase the cost of insurance.
However, insurance companies are trying their best to bring the premiums down and make insurance affordable for everyone. They also try to match it with the market price of the vehicle so that if it needs to be replaced – due it to being totalled, written off, or stolen – remains affordable for all parties involved.
Making sure that you have insurance on a used car is very important, but there will always be many factors that are taken into consideration by your insurance company when you apply for cover for your used motor vehicle. Just make sure you do your research and prepare to pay for what you want covered, this includes, liability, collision, roadside assistance or any extras you may want.