Car Insurance Companies in South Africa - Top 3 Things to look for!

Car insurance companies in South Africa have increased tremendously making the selection process an extremely difficult one. Ask those who have claimed from their car insurance company and you will most likely hear horror stories. The stories range from refusal to pay, poor quality claims experience and immediate unjustified premium increases. If you are like most South Africans, all you know about your insurer is that the salesman was polite and you got a very good premium. You still have a long way to go! In this article, l want to discuss the three critical things that you should always watch out for in an auto insurance company.

Although most car insurance companies in South Africa comply with the law, it is still very important to verify whether the car insurance company is registered with the Financial Services Board as a licenced financial services provider. The law in South Africa requires every insurance company to be registered and there are stringent legal requirements to be met before registration is granted. The legal requirements are meant to weed out all the fly by night operators and give consumers better legal protection. The car insurance salespeople are also required to meet certain levels of competence through a process of accreditation. In a nutshell, the law has put in place a process of ensuring fair play and all you have to do is to be certain that the insurer has committed to play by those rules.

Quality of service is the second most critical element you must be looking for as you evaluate the different car insurance companies in South Africa. It is unfortunate to say that the quality of service offered by most South African insurers is appalling to say the least. Most of you will remember that not so long ago, the National body representing panel shops in the country called for some combined action against a top insurer. So, contact panel shops to verify service levels for your short listed companies and also ask friends. You can also personally call the critical service departments to have a first hand experience of the quality of the service.

The final element you need to be certain of as you evaluate the different car insurance companies in South Africa is whether the premiums are guaranteed. I have personally dealt with a number of people who have complained of their insurance company increasing their premiums after submitting a claim. An insurer who guarantees your premiums will only review your premium on an annual basis. This is a huge benefit as you don't suffer an unexpected increase in costs just because you have claimed. After all, you are covered so that you will eventually claim when the need arises. So, why should you be penalized?

Choosing a car insurance company is a process of predicting on the basis of facts available, the kind of service you will expect from your insurer. This process is not always accurate and it is not about who gives you the cheapest premium. Cheap is sometimes expensive in the long run. However, as you diligently look for the characteristics mentioned above, you should be able to select one good company out of the dozens of car insurance companies in South Africa.

by Khumbulani Phiri



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