Facts about car insurance no one tells you

Defensive Driving Techniques to Avoid Accidents and Insurance Claims

If you want to reduce your risk of traffic accidents and the insurance claims that accompany them — which could cause your premium to go up — you need to drive defensively. Here are some driving tips to help you avoid crashes and stay safe on the road. Always Assume...

Avoid deadly distractions behind the wheel

Not texting is a start, but there's more to safe driving. Here’s the bad news: Distracted driving causes thousands of accidents every year, many of them fatal. The good news? If you're driving, it's 100% preventable. You've seen them around your city or town. You may...

10 Tips to Protect Your Car’s Suspension System

Your vehicle's suspension system ensures a smooth and safe ride, protecting critical components from wear and tear. Understanding and maintaining the components of the system is essential, not just for comfort but also for the stability of the car on rough roads....

The what, why and how of a Vehicle Identification Number

If you’ve ever bought motor insurance, you’re likely to have come across the terms Vehicle Identification Number or VIN and chassis number. You must wonder why insurance companies insist on having this information. That’s because VIN is like a genetic identifier for...

What Is ORVM In Car And How Does It Work?

When you adjust the side mirrors before driving, you deal with the Outside Rear View Mirrors (ORVMs). These mirrors are essential for safe driving, helping you see what’s happening beside and behind your car. This post will discuss what ORVMs are, how they function,...

How to Track a Vehicle with GPS: A Simple Step-by-Step Guide

GPS-based vehicle tracking is today, one of the most helpful tools since it can be employed by any individual or company who wishes to keep track of their cars, trucks or any other vehicle. Thanks to today’s cheap GPS tracking devices, a vehicle owner can easily place...

How To Rebuild Your No Claims Bonus After An Accident

If you’ve had an accident, it can feel like all the good work you’ve put into building your No Claims Bonus (NCB) has gone down the drain. But here’s some good news, you can rebuild it. Your NCB in car insurance works like a reward for safe driving, and that lovely...

Safety Tips For Driving In Floods

Often when we get stuck while driving through floods we panic and force through the water. Instead you need to stay calm and follow these instructions. Situation One: Water Level Is Above Tyre Level  When water level is above the tyre level it's no use forcing...

Car Defogger and How to Use Them?

Have you ever experienced your car windows and windshield suddenly fogging up? It can be scary since poor visibility may cause a dangerous road accident. Driving in the cold or rainy seasons can often lead to foggy windows. This is a common problem, and can quickly...

How to choose the right commercial insurance policy

Unpredictability is the only predictable thing about business right now. Over the past few unprecedented data breaches, and global pandemics have all taken front stage in the insurance industry. And no business is immune.  With the range of commercial insurance...

It is difficult enough trying to understand the basics of vehicle insurance and even more difficult to understand intricacies relating to guidelines, policies and procedures of today’s insurance providers. Below we have outlined some insurance facts so you are in the know when you are on the go.

1. Your credit impacts your insurance premiums

Certain insurance providers have found that certain credit characteristics of an individual is useful and can predict how likely it is for the individual to have an insurance claim. Although different from what a bank may use to determine lending risk, insurers may use credit score including variable like age of the driver, claims history, the type of car being insured amongst others.

2 Brand loyalty can cost you

If your mind set when it comes to car insurance is “cover it and forget it”, you may want to reconsider. Instead of allowing your policy to auto renew, shop around once a year to ensure you are getting the best rates. Poor rates do not necessarily mean less coverage or poor service. Plenty insurers offer affordable premiums, well-rounded cover and excellent customer service.

3. Stop payments will cost you in the long run

If you think it’s easy to cancel your car insurance by simply stopping payments, think again. Yes, the policy will cancel but insurers can report you to credit bureaus for non-payment damaging your credit score. What’s more, your insurance history will reflect a cancellation by the insurer which may cause a new provider to decline your application or charge you a higher premium.

4. Your insurance company can cancel your policy at any time.

In the event that one or more of its policy guidelines are violated during your policy period, the insurer may cancel your policy at any time. Some reasons for cancellation may be failing to pay premiums on time, losing your driver’s, license due to suspension, submitting too many at-fault claims etc. The insurer would need to notify you in writing and is required to state the reason for cancellation.

A reminder that the insurance policy wording and schedule will always contain all guidelines and important information regarding your policy. Be sure to read through them and ask the insurer if there is anything you do not understand.

Insurance in South Africa: AB Brokers