When one is thinking of buying motor insurance, most of the time the decision is usually based on a billboard you may have seen somewhere or from the information of a friend. What most people don’t know is that the price differences between insurance companies are high, while policies do have pretty similar conditions.
So it is crucial for you not to buy the first policy that comes your way blindly, but carefully compare on price and check whether the policy conditions are up to standards. Below are the three reasons why comparing insurance will get you the best deal.
Pay less for the same quality
You might expect otherwise, but cheap policies are also good policies! Most motor insurance companies are pretty similar in the conditions they apply, while the differences in rates are high. Research from Afrinsure shows the top 5 cheapest policies all have a 4 or 5-star rating in the Afrinsure comparison.
While performing a comparison, make sure to look for the perils covered in a motor insurance or the payouts in case of damage. Just because some companies are cheaper, doesn’t mean that they inferior in their ability to pay claims and offer good quality services.
Choose benefits appropriately
The first thing to consider is how you intend to use your car and whether need to take on any additional benefits, to ensure that you are covered against a variety of risks. For instance, a normal comprehensive insurance policy will insure you against riots, strikes and civil commission, but this does not cover damages as a result of political violence or terrorism. Therefore, if want to insure your car against such potential risks, you should add on this benefit. Another issue to look for is the rate charged for those extra benefits (extensions).
Due to differences in risk management, insurance companies have different pricing structures for those extra benefits. For example, the additional premium for excess protector for a Ksh. 1m car can vary from Ksh. 2,500 to Ksh. 10,000, depending on the insurance company. It, therefore, behoves you to check the rates charged and choose a policy that suits your needs and budget. You also have the option to consider a policy that already has those benefits included, however, they are normally charged at a higher cost.
Shop around
Buying insurance via an insurance agent might be convenient, but are you sure your agent is getting the best price and conditions for your policy? You never know which ties your agent has with insurance companies, and whether that affects what he or she is selling you. Some agents are tied to selling products, exclusively from some insurance companies and therefore are limited in their ability to offer different choices.
So if your agent is pushing certain policies or only can offer you a limited number of companies, it’s time to shop around. However, it can be a bit challenging trying to contact all insurance companies yourself and comparing prices and conditions. Luckily, online comparison is nowadays available which takes away the hard work and will bring you the benefits of shopping around on a silver platter. Try it yourself and experience how fast and easy it is!
Are you interested in getting the best policy for the lowest rate? Start your comparison here: Bizna Insurance.